Monday, December 11, 2023

2023 50 To Watch Pattern Watch


 We prolong our congratulations to this 12 months’s Cleantech 50 to Watch corporations and encourage you to discover the listing. This 12 months you can see corporations throughout 15 sectors, from soil monitoring to photo voltaic to water shortage and all the pieces in between.

At Cleantech Group, our 2023 analysis group has been digging deep right into a extra formidable set of applied sciences than ever, starting from superior geothermal energy, to innovation in silicon anodes for batteries, to electrofuels for aviation (and almost 25 different matters – inquire right here for more information on our analysis service).

In our current annual 2023 World Cleantech 100 and 2023 APAC Cleantech 25, we had commented on two constant dynamics: innovation in response to the chaos of the early 2020s and a constructing embrace of “greater bets” for long-term sustainability. Once we final put the Cleantech 50 to Watch listing collectively, it was nonetheless unclear how a lot endurance then-recent 2022 occasions would have in cleantech traits – in the present day, because the U.S. Inflation Discount Act hurtles into its second 12 months and Russia’s land struggle in Ukraine creeps in direction of its third 12 months, we’re seeing innovators lean exhausting into the toughest tech areas.  

This 12 months’s Cleantech 50 to Watch marks a standout 12 months through which “deep” tech options for sustainability are already impacting business markets or readying themselves to. Innovation focusing on probably the most difficult and polluting sectors of the financial system is setting a steadfast course for the late 2020s and 2030s. Industrial operators are beginning to see the feasibility of profound sustainability options, and coverage changes are pushing technological provide in direction of extra favorable financial circumstances.

Pattern Watch

Even within the face of a tricky macroeconomic panorama marked by elevated rates of interest and restricted enterprise return prospects, corporations in these sectors proceed to safe funding. In 2022, we noticed extra investments in deeper cleantech than ever extra (see Determine 1).  If conserving the lens on these sectors by way of the primary three quarters of 2023, these investments are even stronger as a share of general enterprise and development investments in cleantech. One other method to say it, we’re shifting the period of “asset mild, extremely scalable” as the first development analysis standards, and shifting to an period the place forward-positioning for provide into hard-to-change sectors is valued.

Determine 1: Enterprise & Development Investments in Deep Tech Cleantech (2018 – Q3 2023)
Supply: Cleantech Group

Our Cleantech 50 to Watch skilled panel’s perspective echoed this pattern, with a good portion of nominations this 12 months leaning in direction of corporations in {hardware}, supplies, and industrial processes.

The passion for deep tech corporations with hypotheses for end-of-decade market development is probably going not a coincidence – the general crop of cleantech innovators is skewing youthful. The primary half of 2023 noticed seed investments make up their largest share of general enterprise investments in cleantech, persevering with a pattern that started in 2019 regardless of a dip in 2020.

Determine 2: Enterprise & Development Investments in Cleantech, % of Seed Investments vs. Total (2018 – Q3 2023)
Supply: Cleantech Group

As famous on this 12 months’s APAC Cleantech 25 report, innovation in cleantech goes extra international, too. The U.S. remains to be dominant, and the subsequent runners up are usually predictable (China, Germany, UK), however it may be seen from zooming in on seed investments since 2021 that there’s shut competitors between the subsequent 10 or so international locations.

This dynamic signifies that we may even see continued regional shifts in innovation development over the subsequent few years as early-stage corporations mature and goal to interrupt out of their house markets. 12 of this 12 months’s Cleantech 50 to Watch listing had been based in international locations outdoors of North America, Europe, or North Asia together with:

  • 4 corporations from Africa
  • 4 corporations from South and Central America
  • 3 corporations from New Zealand and 1 from Australia

Determine 3: Locations for Cleantech Enterprise & Development Investments, (2021 – Q3 2023)

Supply: Cleantech Group

To gauge the longer term course of cleantech innovation, observe the evolving ecosystems. Whereas many enterprise capital funds are globally famend in cleantech, incubators and accelerators usually are largely regional gamers. But, some have risen to international prominence – as an illustration, 5 corporations on this 12 months’s Cleantech 50 to Watch are affiliated with Third By-product.

Early-stage incubators and seed buyers that go even additional upstream to enterprise constructing – the apply of first figuring out promising technologists or aspiring entrepreneurs after which constructing corporations round them – are producing a few of tomorrow’s key gamers at a quick clip. Six of this 12 months’s Cleantech 50 to Watch participated in a program or acquired funding from an entity with a venture-building mission assertion. Breakthrough Vitality Fellows, Breakthrough Vitality’s program for high-potential vitality and heavy trade decarbonization entrepreneurs, which solely launched in 2021 – landed 3 corporations on the 2023 50 to Watch listing (be aware: Breakthrough Vitality Fellows is a shopper of Cleantech Group).

We invite you to obtain this 12 months’s Cleantech 50 to Watch — youthful, sooner, and gutsier. This 12 months’s listing is a testomony to the dynamics that we’re seeing slowly crescendo within the general cleantech innovation universe, and certainly the identical ones that might be essential to sort out probably the most urgent local weather challenges.

Lastly, a reminder that our mission as a group is to determine and perceive rising applied sciences to gradual the tempo or enhance resilience to local weather change, in order that we will inspire actions from our community of subscribers and purchasers. Are you, a colleague, or one in every of your portfolio corporations engaged on a local weather resolution? We need to know – attain out to our analyst group at for a chat.


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