The Seattle area is making its mark in climate tech.
According to a report released Tuesday by Revolution, a Washington, D.C.-based venture capital firm, local climate tech startups landed $239.8 million across 20 deals in 2023. That funding amount was the fourth-highest in Revolution's rankings of U.S. metropolitan areas by climate tech funding, but the rankings excluded the traditional juggernauts of the Bay Area, New York City and Boston.
"A more dispersed climate tech economy will lead to greater innovation and more ready adoption of climate solutions," Revolution wrote in a blog post accompanying the report. "Different regions have different legacy industries, talent pools, corporate players, challenges and opportunities. That diversity in thought, resources and experience is a catalyst for new climate solutions when capital is distributed rather than concentrated."
Los Angeles climate tech startups landed the most funding last year outside of the heavyweights, with $546.2 million. The Denver area was second with $522.5 million, followed by Washington, D.C., with $373.8 million.
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Multiple local climate tech companies have landed major funding in recent years. Woodinville-based battery tech company Group14 raised a $614 million Series C round in 2022, while Bellevue-based nuclear power company TerraPower, which was co-founded by Bill Gates, raised $830 million that same year. Everett-based fusion energy company Helion raised $500 million in 2021.
Last year, Tukwila-based fusion energy company Avalanche Energy raised $40 million. Local hydrogen heating company Modern Hydrogen raised $32.8 million last year.
The report noted that California is losing its stranglehold on climate tech funding. According to Revolution, California startups landed 76.5% of U.S. climate tech venture capital funding in 2018 but just 46% last year.
Revolution was founded by AOL co-founder Steve Case. The firm has invested in big names like DraftKings, Sweetgreen and Clear. The report used data from Seattle-based PitchBook Data, which defined climate tech companies as "dedicated to developing solutions aimed at mitigating or adapting to the impacts of climate change.”
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