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Sustainable infrastructure companies, trends and deals

Nov 13, 2023
Data: PitchBook; Chart: Axios Visuals
Data: PitchBook; Chart: Axios Visuals

Sustainable alternatives to traditional building materials have grown increasingly popular as residential and commercial buildings strive to be more energy efficient.

Why it matters: The built environment, which encapsulates anything along the lifecycle of residential and commercial buildings, accounts for approximately 40% of global carbon dioxide emissions.

Context: In the first half of 2023, climate-tech companies working in the built environment closed more than $1.8 billion in VC deals, according to a report by PitchBook.

The boost in startups and VC money aligns with the surge in "net-zero" pledges. Nearly 150 countries and more than 900 publicly listed corporations have set climate-specific goals as of 2023.

Between the lines: Building emissions are often reduced through shifting the time of power use, replacing fossil fueled heating with electric heat pumps and installing solar panels, but other structural modifications are being developed to enhance those energy-saving benefits, fueled by government funding and private investments.

  • Redaptive, an HVAC efficiency company, received a $250 million Series E led by Linse Capital, and BlocPower, a data analytics company working on energy electrification, announced a fundraising round of $150 million, including over $24 million of Series B corporate equity.

Yes, but: Building codes at the local, state and national level have been slow to permit the use of new technologies in building materials, and local agencies often lack the resources to create regulations to support the use of new sustainable developments. Construction also remains a conservative sector, typically performing with slim margins.

Data: PitchBook; Chart: Axios Visuals
Data: PitchBook; Chart: Axios Visuals

Recent funding trends in the sustainable infrastructure industry include:

Go deeper: View our latest coverage on everything shaping the climate tech industry across VC, PE and M&A.

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