Greentech (a.k.a. cleantech) investing hit a peak in 2008 with $2.8 billion in VC investments, but that amount has declined ever since. However, according to Pitchbook, we might be seeing a renaissance: $1.9 billion in the industry this year, and if that rate continues, it’s on track to surpass 2008 as a decade high.
Despite the dip, Boston has remained strong. In a Boston Business Journal article, a Brookings Institution report showed Boston as the third-strongest metro area for green tech investing between 2011 and 2016—$2.9 billion, about 9 percent of the nation’s investment. Greentech in the state booming too, with 81 percent growth since 2010 and over 100,000 employed in the sector.
Such a rich ecosystem is abetted by a robust support framework that helps startups and companies with consulting, investing, insurance, data and research, among other services. Below are ten companies that are bringing particular expertise to local greentech and helping the industry excel.
Breiter Planet Properties HQ: Worcester, MA Launched: 2016
For real estate owners and communities who might be interested in converting to solar but have no idea how to begin, Breiter Planet makes the education and implementation process streamlined. From assessing existing usage all the way to recommending and working with a solar partner to do the installation, Breiter Planet offers different ways to save on solar equipment expenses. They also work with owners with available land or roofs to develop solar farms that can be rented out. In May 2018, the startup was a winner of StartUp Worcester, which gives them access to resources and a business network to grow.
Clean Energy Venture Group HQ: Cambridge, MA Launched: 2005
There are a few big players in the VC greentech space, including Globespan Capital Partners and Polaris partners. But Clean Energy Venture Group is known for its focus: this year, Pitchbook named CEVG as one of the 12 most active VC investors in cleantech. The group was originally conceived in 2004 with a group of four angels when greentech was still a developing industry. Their team has since expanded to 16 members in New England and seven in New York; they’ve invested in 25 companies that range from bikesharing to waste reduction for breweries. They’re a strong presence for early-stage greentech investing, which can still be hard for startups to find. CEVG also continues supporting startups after their initial investment.
Greentech Media HQ: Boston, MA Launched: 2007
Want to know the latest in greentech news, especially clean energy and solar power? GTM offers up-to-the-minute news and research, billing itself as “the leading information services provider for this next-generation electricity system.” This year’s annual GTM Forum is focusing on how New England can sustain its status as a greentech leader. In 2016, GTM was acquired by Verisk Analytic and is now part of Wood Mackenzie; the former GTM Research, now called Wood Mackenzie Power & Renewables, will now provide research and consulting services for clients in the global renewable energy space using data and business intelligence.
Greentown Labs HQ: Somerville, MA Launched: 2011
Greentown Labs is the largest greentech incubator in the United States, and its CEO is a BostInno 50 on Fire winner. It’s incubated more than 170 companies (including a number on this list) and helped them raise over $320 million. In May 2018, it announced the opening of its Global Center for Cleantech Innovation: a new 100,000 square foot facility that includes a wet lab, prototyping lab space and machine shop, among other resources. Members have access to the facility, its office and lab space, investment opportunities and legal services. In September 2018, The Department of Energy’s National Renewable Energy Laboratory selected Greentown Labs to grow the American-Made Solar Prize, a $3 million competition to boost solar manufacturing. In 2016, Greentown got company: MIT launched a similar initiative called “The Engine,” which raised $150 million and is dedicated to tough tech projects.
Massachusetts Clean Energy Center HQ: Boston, MA Launched: 2009
MassCEC, a quasi-public agency, is committed to clean energy sector and provides direct investments and support for local greentech projects. Their scope is broad, from piloting new water technologies at UMass Amherst, to a $1.5M loan for the Greentown Labs expansion (above), to innovative wastewater treatments for plants in towns like Pittsfield and Fairhaven. In April 2018, MassCEC awarded $455,000 in grants through the Catalyst Program, administered jointly the Massachusetts Technology Transfer Center (MTTC). Seven early-stage researchers and startups that focus on technology breakthroughs were awarded funds to help them bring their innovations to market and secure further private funding. Catalyst has awarded $3.64 million to 83 companies and teams since it launched in 2010.
Mintz HQ: Boston, MA Launched: 1933 (2004)
There are a number of law firms that specialize in greentech in Boston. Mintz, formerly Mintz Levin, has an Energy & Sustainability Practice launched in 2004 and headed by Thomas R. Burton III that has completed over 500 transactions totaling almost $7.5 billion. Burton is ranked under corporate law in Best Lawyers in America, and has represented giants like the largest global provider of demand response, EnerNOC, in its IPO and GTM Media in its acquisition by Woods Mackenzie (above). Burton also helped in the formation of the Northeast Clean Energy Council (NECEC) and continues to advise them. Burton’s work isn’t confined to big business and VC, though: he contributes to the website, MintzEdge, which is designed to help entrepreneurs start and build a company.
Clean Energy Solutions Inc. Launched: 2000 HQ: Cambridge, MA
Clean energy consulting is good business in Boston, including energy giants like EnerNOC (which was sold in 2017). But CESI differentiates itself by focusing locally: it serves organizations like Massachusetts Municipal Association and Cambridge Energy Alliance as well as states, regions and cities including the Virgin Islands, Jacksonville, FL and New Orleans, LA. They practice a holistic, neighborhood-based strategy that covers energy efficiency, renewables and water conservation all at once and includes financing solutions from public and private sources to integrate with existing investments. Along with the Solar Foundation and Urban Ingenuity, CESI helped develop CivicPACE, a program funded by the U.S. Department of Energy's SunShot Initiative to help tax-exempt institutions like non-profits afford solar energy solutions.
Risk Consulting Partners HQ: Somerville, MA Launched: 2013
For greentech companies, suppliers, developers, owners and investors, Risk Consulting Partners’ Clean Energy Practice acts as a insurance broker and risk management advisor. They connect clients to VC and PE firms and have worked with technologies including solar, wind, energy storage and energy efficiency, among others. The risk profile for these industries can be higher or less tested; Clean Energy Practice works to obtain broad terms, conditions and pricing. It even, in conjunction with its partner Lloyd’s of London, provides discounts for institutions that achieve certification from the Low Impact Hydropower Institute (LIHI).
Sunwealth HQ: Somerville, MA Launched: 2014
Greentech investment firm Sunwealth is trying to dispel the notion that impact investing is tied solely to philanthropy by investing in high-performance solar in underserved markets. Their Solar Impact fund is made up of diversified commercial solar projects; they have a proprietary investment platform that a growing community of investors are becoming a part of. Sunwealth partners with suppliers and engineers on projects that are in the fund: in 2017, they financed 30 solar installations in socially diverse communities across seven states. That same year, Sunwealth won Green Business of the Year Award from the Somerville Chamber of Commerce.
Upstream HQ: Somerville, MA Launched: 2016
BostInno 50 on Fire company Upstream aims to “to create economic forces that drive environmental good.” For greentech companies, Upstream provides an adaptive machine learning platform that uses remote data to help organizations make better business decisions. For water allocation, that means quantifying freshwater usage and infrastructure to understand consumption, sustainability and risk. For land use, that means monitoring forestry projects in almost real time and understanding the impact of carbon offset projects. And for agriculture, it means geospatial analysis for crop and region-specific recommendations.
