Trends and Drivers in Early-Stage Energy Technology Investing

Abstract

This project addresses the key drivers behind major trends in early-stage energy technology investing, seeking to draw conclusions about trend lifecycle and future implications for the sector. The three major trends explored in this project include: (1) an increase in corporate venture capital activity, (2) a decrease in overall venture investment in the sector, and (3) a difficult environment for raising new energy-focused funds. After conducting in-depth interviews with eight prominent venture capital investors – varying in fund size, location, and investment focus – an analysis of results show three critical findings: (1) attitudes toward increasing corporate venture capital (CVC) involvement vary based on firm size and focus, (2) unattractive market dynamics are pushing funds to focus more on downstream investments, and (3) the major trends identified are strongly interconnected.