svb+氣候技術(shù)的未來-The Future of Climate Tech -A look at the technologies driving a sustainable future

Alookatthetechnologiesdrivinga

sustainablefuture

June2023

Abrightfutureforclimatetech

Thescientificconsensusisclear.Theworldmustachievenet-zerogreenhousegasemissionsby2050tomitigatetheworsthuman

impactsofclimatechange.Whilethisisadauntingtask,itispossible.Achievingnetzerodoesn’thingeonasinglemoonshotscientific

breakthrough,butratheronincrementaltechnologicalimprovementsandthemassscalingoftechnologiesthatalreadyexistinthelab.

Todothat,climatetechinnovatorsmustleadtheway.

Weunderstandtheimportantroletechcompaniesplayinhelpingtosolvetheclimatecrisisandareoptimisticaboutthefuture.This

reportleveragesSVB’sproprietydataandsectorexpertiseforanupdatedlookatthestateofclimatetechnology.Muchhaschanged

sinceourlastreport.Marketchallengesintechandfinancialserviceshavecreatedshort-termheadwindsforfoundersandinvestors.

Butthelong-termoutlookforclimatetechcompaniesisbright.

Climatetechhasremainedresilientdespiteaglobalslowdownintheventurecapital(VC)ecosystem.Investorsrecognizethegrowing

demandforclimatetechsolutions.Nodatapointillustratesthisoptimismbetterthantheresiliencyofclimatetechvaluations.While

theVCecosystemhasseenthemostsignificantvaluationcorrectioninoveradecade,climatetechvaluationshaveremainedator

abovetheir2021levels.

GovernmentpoliciessuchastheInflationReductionAct(IRA)haveboostedtaxcreditsandincentives,whiledemandforsustainable

solutionsamongconsumersispushingbusinessesandmoneymanagerstoconsiderclimatecostsintheirdecision-making.Atthe

sametime,techadvancementshavegivenrisetoaburgeoningnewcohortofcompanies—andnewsectors—builtonfoundational

cleantechsuchassolar,windandbatteries.

Thechallengetoachievingnetzeroistodosowithinthebudgetconstraints,policiesandmarketmechanismsoftherealworld.The

roleofclimatetechistodevelopcost-effectivesolutionstoreduceclimatechangethataredeployableatscaleanddependonmarket

demandforgrowth.Withsomanyforcespushingclimatesolutionsforward,wearemindfulofthechallengesaheadbutsteadfastin

ourbeliefthatwithdedicationandcommitment,theworstimpactsoftheclimatecrisiscanbeavoided.

DanBaldi

EliOftedal

JoshPherigo

SeniorResearcherMarketInsightsSiliconValleyBank

MonaMaitra

SeniorCreditOfficerTechnologyBankingSiliconValleyBank

JordanKanis

NationalHeadofClimateTechnologyandSustainability

ManagingDirectorClimateTechandSustainabilitySiliconValleyBank

SeniorResearcher

MarketInsights

SiliconValleyBank

SiliconValleyBank

Outlook:Fourthemesinfluencingthefutureof

climatetech

Navigatingtonetzero:Keythemesandpolicies

Resilientinvesting:Thefinancingdynamicsofa

greenfuture

Promisingtech:Digitalevolution,thermaltech

andgreenhydrogen

Authors

FUTUREOFCLIMATETECH|20233

SVBPublic

FUTUREOFCLIMATETECH|20234

Massivefederalspendingcreatesmomentumforscalinggreeninfrastructureandenergydeploymentswhileprovidingabackstoptoprojectfinance.Strongerincentivesforawiderangeofcarbon-reducingtechnologiesimprovetheeconomicsforclimatetechinvestors.NewfundingfromtheDepartmentofEnergyoffersa

lifelineforcapital-intensiveenergyprojects.

Thenextgenerationofclimatetechishere,builtonthefoundationaltechnologiesdevelopedduringthecleantech1.0boom.1

Opportunitiestooptimize,decreasecostsanddevelopnewmarketsarisewhencontinueddeeptechinnovationsarecoupledwithartificialintelligence(AI),machinelearning(ML)andsoftware.Climatetech2.0isthusnotjustadeeptechphenomenonbutreflectsamorediversecohortofcompanieswithawiderrangeofsolutions.

Deeptechinnovationscancaptureandprocesslimitlessstreamsofdata,fromcarbonemissionstrackedbysatellitestotrafficdatageneratedbycars.Thisdataisbeingusedtocreatenewclimatetechsoftwaresolutions,suchasmoreefficientcarbonmarketsandAI-poweredvirtualpowerplants,butisalsobeingusedtogenerate

newrevenuestreamsforhardwarecompaniesandtoopenthedoorfornewsoftwarecompanies.

Electrificationoftheenergysectorwithcarbon-freeelectricitywillcontinue,augmentedbytheapplicationofclimatetechnologiessuchasvirtualpowerplants,improvedweatherforecastingandlong-termstorageonthesupplyside.Onthedemandside,electrificationofvehicles,buildingsandindustry

willrequireadvancesinclimatetechnologiessuchassmartgridsandstorage.

Notes:1)Occurredbetween2006-2011.

FUTUREOFCLIMATETECH|20235

Keythemesandpolicies

GtCO2e

2015

2020

2025

2030

2050

PercentofTotalEmissions

20Gt

60

29%

ProtectingEcosystems:Preservingforestsandwetlands

50

Undercurrentcommitments,theEmissionsGapwouldswellto31Gtin2050.

31Gt

21%

FarmImprovements:

Carbonmanagement

40

16%

DecarbonizeSupplyChains

17%

30

Untappedtechnologiesandwidespreadsocial

changesareneededtoreachnetzero.

Theimpactsofclimatechangearebecomingmoreapparenteveryyear.Yetdespiteglobalprogresscurbingthegrowthofgreenhousegas(GHG)emissionsoverthelastdecade,thegapbetweencurrentpolicycommitmentsandwhatisneededtoavoidclimatedisastercontinuestogrow.Amassiveoverhauloftheworld’senergysystemsiswellunderway,butexistingcommitmentswon’tbeenough.CountriesthatsignedtheParisAgreementarefallingbehindontheirpledges,withannouncedpolicycommitmentsexpectedtoreduceglobalemissionsby10%asof2030,wellshortofthe45%reductionthatisneeded.Overcomingthatgapisthechallengeofourtime.

Techcompanieswillplayanimportantroleinaddressingtheclimatecrisisbyenablingtheglobalrolloutofgreenenergyandcreatingnewsolutionsforchallenges,suchasdecarbonizingindustrialprocesses.However,techisnotasilverbullet.Solvingtheclimatecrisisdoesn’thingeonasinglemajorscientificbreakthroughsomuchasthemassscalingandincrementalimprovementofexistingtechnologies.Byfosteringeconomiesofscale,reducingcostsofcleantechnologiesandcreatingdemandforgreenerproductsandpractices,techcompaniesarecriticaltoacceleratingourpathtowardanet-zerofuture.

Societalchangesareneededinelectricitysupply,industrialprocesses,transport,buildingsand,perhapsmosturgently,foodsystems.Inputsrequiredtofeedhumanityaccountforroughlyone-thirdofGHGemissions.Unlikepowerproduction,whichistrendingmorerenewable,emissionsfromfoodsystemsareheadinginthewrongdirection.Reversingthistrendthroughdemand-sidechanges(suchasshiftingtoplant-baseddiets)alongwithsoilconservationanddecarbonizedsupplychains(cleanergrocerystorerefrigerants,forexample)areareasripefortechdisruption.

GlobalEmissionsScenariosandtheWideningEmissionsGap1

2010PathCurrentPathConditional2oC1.5oC

(4oC)(2.6oC)NDCs(2.2oC)ScenarioScenario

70

Scenario:Low-carbonfoodsystemsnarrowthegapto6.5Gt2

Demand-SideChanges:

Suchasgreateradoptionofplant-baseddiets.

24.5Gteliminated

GreenhouseGasEmissionsbySource

AgricultureandLandUseBuildingsIndustryTransportWaste

3%

16%

18%

20%

43%

12%

10%

8%

6%

4%

2%

0%

GlobalGHG

Emissions

Notes:1)BasedonUNestimatesofannualGHGemissionsforvariouspolicyscenarios.NationallyDeterminedContributions(NDCs)arethecurrentcumulativeemissionstargetsofcountriesthatsignedtheParisAgreement’slong-termtemperaturegoal.2)Foodsystemsincludecross-sectoractivitiessuchaslanduseandtransportation.TheseestimatesarebasedonaUNanalysisofcutsneededtoreach1.5Cpathby2050.

Source:UnitedNationsEnvironmentProgram(UNEP),OurWorldInDataandSVBanalysis.FUTUREOFCLIMATETECH|2023

6

GtCO2e

TaxCreditPerTonofCO2

$180

$130

$85

$60

$50

$35

$50

$35

IndustrialStorage

IndustrialUtilization

DirectAirCaptureStorage

DirectAir

Capture

Utilization

USgovernmentactiononenergyinnovationhastakenagiantleapforwardinthelastthreeyears.Together,theBipartisanInfrastructureLaw(BIL),theCHIPSActandtheInflationReductionAct(IRA)willfundnearlyhalfatrilliondollarstowardclimatetechnologiesandenergyinfrastructureoverthenextdecade.Thegrants,loansandincentiveswithinthesespendingbillswillstrengthentheeconomicsofemergingbusinessmodels,reducingriskandboostinginvestorconfidenceintheclimatetechspace.

TheIRAalonerepresentsthelargestsingleclimatespendingbilleverpassedintheUS.Itextendsandcreatesnewincentivestospurgrowthinrenewableenergyandpromotecleantechnologies.Expandedtaxcreditsimprovetheuniteconomicsforcarbon-reducingtechnologiessuchasdirectaircaptureandhomeheatpumps.Thelegislationintroducesnewtaxcreditssuchascreditstoindividualspurchasingusedelectricvehiclesandcorporationspurchasingcleanfleetvehicles.ItalsojumpstartstheDOEloanprogramthatwascriticalinfundingwind,solarandearlyelectricvehiclemanufacturingadecadeagobuthasbeenlessactiveforthelastfiveyears.Theseloanswillacceleratelarge-scalerenewableinfrastructureprojectsthatcouldbedifficulttofundintheprivatemarket.

TheactionswithintheIRAandotherrecentspendingbillsareexpectedtoreduceannualUScarbonemissionsbyabout1.1gigatonsby2030.Butevenwiththesesignificantoverhauls,moreactionisneededtomeetnet-zerocommitments.Techcompanieswillplayanimportantroleincreatingtheefficiencygainsneededtoovercometheremaininggap.

USGHGEmissionsScenarios1

InflationReductionAct(IRA)Spending2

Pre-IRAPost-IRANet-ZeroPath

Historical

DirectSpendingTaxCredits

EnergyEfficiency3%EnergyLoans

7

1%IndustrialDecarbonization

CleanElectricityGeneration&Storage

6

Agriculture&Forestry

Conservation

31%

OtherProjects(GreenBank,etc.)

5

$292B

69%

IRAandBILpolices

cut1.1gigatonsof

CO2emissions.

4

CCUS31%

CleanVehicles

Butmoreactionis

neededtoreach

netzero.

CleanFuels

3

CleanEnergyManufacturing

NuclearPower

HouseholdIncentives

200520102015202020252030

USCarbonCaptureTaxCredits

Pre-2022Post-IRA

NotableClimateTechIncentivesinthe

InflationReductionAct(IRA)

Sector

Incentive

Amount

KeyStartups

Transport

Taxcreditforcleanfleetvehicles.

30%ofthepricedif.foragasequivalent.

Transport

Taxcreditforusedelectricvehicles.

30%oftheEVprice(upto$4k)

Industry

Feeonmethane

emissions.

$900/tonin’24(upto$1500/tonby’26)

Buildings

Taxcreditforhomeheatpumps.

30%oftheinstall

cost(upto$2k)

Industry

Taxcreditsfor

CCUSprojects.

$180/toncaptured

Industry

Taxcreditforgreenhydrogen.

$3/kgproduced

FUTUREOFCLIMATETECH|20237

Notes:1)Scenariosreflectthemedianpathofoutcomesbasedoncurrentpolicycommitments.CarbonreductionsestimatedbytheDOE.

2)BasedonanalysisbyBrookings.3)Carboncapture,useandsequestration.

Source:UnitedNationsEnvironmentProgram(UNEP),BookingsInstituteandSVBanalysis.Allnon-SVBnamedcompaniesareindependent

thirdpartiesandarenotaffiliatedwithSiliconValleyBank,adivisionofFirst-CitizensBank&TrustCompany.

Expectations

Climatetechnologiesarerapidlymaturing.Thescienceandsystemsenablingrenewableenergysourceslikewindandsolarhavereachedstable,highproductivitylevels.Thecostofsolarhasfallen80%inthelastdecade,whiletheefficiencyofwindturbineshasdoubled.Renewablepowerisoftencheaperthanconventionalsources.Thechallengeisscalingthesetechnologiesandaddressingintermittency.

Alongwiththetechnologies,climatetechstartupsarealsomaturing.Late-stagecompaniesaccountforover44%ofVCdealsintheclimatetechspace,upfrom35%in2019.Theshifttowardlater-stageinvestmentsignalsclimatetechcompaniesarereachingtherevenuemilestonesneededtosupporthighervaluations.Itisalsoasignthatinvestorsarebecomingmoreconfidentinthelong-termprospectsofclimatetech.Thismaturationhasledtoaboomofunicornswith80climatetechunicornsworldwide,including14UScompaniesthatbecameunicornssince2022.Thesecompaniesareinavarietyofsectors,includingenergy,transportation,agricultureandwastemanagement.

Unicorns’successisatestamenttothegrowingdemandforclimate-friendlysolutionsandasignthatthemarketismovingtowardaplateauofproductivity.Climatetechnologiesarebecomingincreasinglyaffordable,efficientandscalable.Whileclimatechangeiswellunderstood,thechallengeisfinancing,scalingandadoptingsolutionsandtechnologies.Movingtechnologieslikebatterystorage,smartgridsandcarboncapturetoaplateauofproductivitywillrequireaconcertedeffortfromgovernments,businessesandindividuals.Thegoodnewsisthattheclimatetechindustryisgrowingrapidly,andmanypromisingsolutionsareavailable.

SelectClimateTechInnovationHypeCurve

CCUS1

ClimateFintech

SAFS2

BatteryRecycling

Plateauwillbereachedin:

ReachingthePlateau

Thisiswhenmainstreamadoptionofthetechnologystarts.Associatedrisksarereducedandbenefitfromthetechnologyisbroadlyaccepted.Marketsharegrows.

0–2years

2–5years

5–10years

Morethan10years

DAC4

ElectricAircraft

Hydrogen

ShippingFuelNuclearFusion

CarbonMarkets

Offshore

Wind

EVs

Geothermal

Wind

AlternativeProteins

AlternativeFarmingStationary

PackagingPower3

SyntheticBiofuels

FuelCellEVs3

WastetoFuel

Biotech

Agriculture

SmartBatteryInputs

GridStorage(LI)

DemandPrecision

ResponseAgriculture

Nuclear

SMR5

GreenHydrogenGeneration

SolarPV

Wave/TidalPower

PlateauofProductivity

InnovationTriggerPeakExpectationsDisillusionmentSlopeofEnlightenment

VerticalFuelCell

HeatPumps

PercentageofUSVCDealsinClimateTechGoingtoLate-StageCompanies6

44%

44%

40%

38%

35%

20192020202120222023

2023

Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

20182019202020212022

USClimateTechUnicornDeals7

15

14

13

11

10

99

77

66

555

333

2

9

7

FUTUREOFCLIMATETECH|20238

Notes:1)Carboncaptureutilizationandstorage.2)Sustainableaviationfuels.3)Hydrogenfuelcell.4)Directaircapture.5)Smallmodular

reactor.6)Late-stagedefinedbyPitchBook.7)Notablecompanylogos.Source:PitchBook,HolonIQ,CleantechGroupi3Connect,SVB

proprietarytaxonomy,InternationalEnergyAgencyandSVBanalysis.Allnon-SVBnamedcompaniesareindependentthirdpartiesandarenot

affiliatedwithSiliconValleyBank,adivisionofFirst-CitizensBank&TrustCompany.

FUTUREOFCLIMATETECH|20239

Thefinancingdynamicsofagreen

future

Climatetechfundraisingisdown60%YoYmirroringthedeclineexperiencedbytheoverallUSVCfundraisingmarket.TherealityisthatFedtightening,publicmarketuncertaintyandwhathasbeenreportedastheworstperformingvintageinoveradecade1meansthatlimitedpartnersareslowingdowninvestmentsintofunds.

Thesetrendsmeanthatgeneralpartnersarealsopullingback.Thenumberofinvestorsmakinginvestmentsinseed-stageUSclimatetechcompanieshasdecreasedby37%sinceH12022.However,attheseed-stage,thedeclineofactivetechinvestorsfellby51%acrossthebroadertechsector,suggestingclimatetechismorepromisingthantechoverall,reflectinganoptimisticviewofthesector'sfuture.Furthermore,thedeclineinactiveinvestorsislesssignificantthandealactivity.Thisispartlyduetotheconcentrationofdealsamongrelativelyfewinvestors.Thetop5%ofinvestorsaccountfor32%ofallclimatetechdealactivitysince2021.

Climatetechcompanieshavebenefitedfromthemanygeneralistsinthespace.Forexample,BlackRock,FidelityandInsightPartnersareamongthetopinvestorsinlate-stageclimatetechcompanies.Generalistinvestorsaccountfor59%ofdealsmadebyclimatetech’stop100mostactiveinvestors.Thisresultsfromthefactthatgeneralistsaretypicallylargerthanclimatetechfunds.Amongthetop100climatetechinvestors,generalistshadamedianfundsizeof$1.9B,whilespecialistinvestorshadamedianfundsizeof$450M.Thebreadthofcapitalavailabletoclimatetechcompanies,andinterestinthesectormayshieldthemfromtheworstofthedeclinesinVCfundraisingandinvestment.

$5.0B

$4.7B

$2.2B

$1.3B

$2.6B

$2.9B

$3.0B

$3.0B

$1.2B

$2.7B

$2.7B

$2.8B

$5.4B

$4.5B

$6.0B

$7.0B

$4.7B

$3.7B

$3.2B

$2.3B

$1.9B

46

45

USClimateTechFundraising2

CapitalRaisedintheTrailing12Months

50

38

36

33333132333231

27

212221

18

25

28

39

30

FundsClosedintheTrailing12Months

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1

$4.8B

TotalUSVCClimateTechFundraisingSince2021byFundStrategy

StageAgnostic

Seed

$0.9B

Early

$2.9B

Late

$1.5B

201820192020202120222023

ActiveUSInvestorsbyStageandSector3

TechClimateTech

H12022

Trailing6-Months

7,416

6,291

6,233

3,466

3,638

3,107

1,385

774

714

840

452

450

Seed

Late-stage

Early-stage

USVCDealActivityIndex:

TrailingThreeMonths4

TechClimateTech

120

110

100

90

80

70

60

50

79

59

JanFebMarAprMayJunJulAugSepOctNovDecJanFebMar'22'22'22'22'22'22'22'22'22'22'22'22'23'23'23

FUTUREOFCLIMATETECH|202310

Notes:1)PitchBookandTheWallStreetJournal.2)Fundswithastatedemphasisin:Electricandhybridvehicles,cleantechnology,agtech,

energystorageandbatteriesandrenewableenergy.3)Activedefinedasinvestorsofanyfundtypethathavemadeaninvestmentinthelast6

months.4)TotalVCdealsforthetrailingthreemonthsindexedto1001/1/2022.

Source:PitchBook,CleantechGroupi3Connect,SVBproprietarytaxonomy,TheWallStreetJournal,PreqinandSVBanalysis.Allnon-SVB

namedcompaniesareindependentthirdpartiesandarenotaffiliatedwithSiliconValleyBank,adivisionofFirst-CitizensBank&TrustCompany.

VCdealactivityinclimatetechnologyhasslowedby21%sincethebeginningof2022.Still,ithasfallenslowerthanVCinvestmentinothertechnologysectors,whichfell41%inthesameperiod.Despiteclimatetech’soutperformance,nearlyallverticalswithinclimatetechhaveseenaYoYdecline,withthesteepestdeclinesinfoodtech,fintechandsupplychaintechnology.

Alternativeproteincompanieshaveseenlacklusterperformanceinpublicmarkets,whichmayhelpexplainthebelow-averageinvestmentlevelsoffoodtechcompanies.However,wemayseearesurgenceinthespacewithafewcultivatedmeatcompaniesgettingFDAapproval.Climatefintechhasalsoseensignificantdeclines,butthisisdrivenbyfactorsexogenoustoclimatetech,suchasincreasedregulatoruncertaintyandlargefraudcasesinthecrypto/fintechspacewithFTX,amongothers.

Despitetheslowdown,valuationsinclimatetechhaveremainedflatorup,comparedtogeneraltech,whichhasseenvaluationsfallacrossallstagesapartfromseed.Thisislikelyduetothelargemarketopportunityforclimatetechdealsandthefactthatsomeclimatetechinvestorsarelessvaluationsensitiveduetotheirmission-driveninvestmentthesisbalancingclimateimpactandfinancialreturns.Asaresult,theyarewillingtopayhighervaluationsforcompaniesdevelopinginnovativesolutionstoclimatechange.

$4.3B

$5.8B

$5.9B

$5.3B

$5.4B

$4.7B

$10.0B

$6.6B

$12.1B

$10.9B

$14.7B

$14.9B

$12.6B

$9.7B

$9.8B

$8.2B

$5.8B

508514510509

19%

13%

12%

-10%

USClimateTechVCInvestment

DealsCapitalInvested

545

486

463

410417408

352367358343365

444

380

1Q2Q3Q4Q

1Q2Q3Q4Q

1Q2Q3Q4Q

1Q2Q3Q4Q

1Q

2019

2020

2021

2022

2023

ChangeinMedianUSPost-moneyValuationbySeries2021–2023YTD2

ClimateTechOtherTech

39%

33%

3%

-39%

-59%

-67%

Seed

$14M

SeriesA

$43M

SeriesB

$120M

SeriesC

$320M

SeriesD+

$1B

$15M$45M$98M$260M$340M

MedianPost-MoneyValuation2023YTD2

YoYDeclineinUSVCDealActivitybyNotableClimateTechVerticals1

Mobility

Industrials

E-Commerce

AI/ML

AgTech

SaaS

Manufacturing

SupplyChain

Fintech

FoodTech

-15%

-16%

-23%

-26%

-33%

-35%

-45%

-47%

-50%

-52%

$101M

$150M

$75M

$100M

$23M

$48M

$50M

$21M

$24M

$16M

USVCPre-MoneyValuationsbyStageandSubSector:Trailing12Months3

Median

Middle50%ofCompanies

$200M

$69M

$0M

EarlyLate

Energy&Power

EarlyLate

EarlyLate

Tech(Non-ClimateTech)

EarlyLate

Agriculture&Food

Transportation

andLogistics

FUTUREOFCLIMATETECH|202311

Notes:1)Trailingthreemonthsasof5/31/2023comparedtotrailingthreemonthsasof4/30/2022.2)YTDasof4/30/2023.3)Late-stage

definedusingPitchBook:PostseriesBor5+yearsafterfoundingdate,trailing12monthsasofMay31.

Source:PitchBook,CleantechGroupi3Connect,SVBproprietarytaxonomyandSVBanalysis.

AsVCinvestmenthasslowed,cashrunwayforclimatetechcompanieshasbeguntofall.Mostcompaniesdonothavethe18-24monthsofrunwaythatsomeinvestorsrecommend.However,inpastmarketcycles,VCinvestmenttendstoreboundafter12-18months.Weare18monthsintothedecline,andmonthlyVCinvestmentnumbersleveledoff,suggestingthatwearereachingafloor.Thus,companieswith12monthsofrunwaymayhaveenoughtoweatheracontinuedslowdowninVC—especiallyclimatetechcompaniesshelteredfromtheworstoftheVCslowdown.

In2022investmentslowedforclimatetech,withtheexceptionofenergyandpower.Energyandpowersawcontinuedrevenuegrowthasthemediangrowthratewasninepercentagepointshigherthanin2021comparedtotransportationandagriculture,whichbothsawrevenuegrowthslide17percentagepoints.

Energyandpowerhasfaredwellduetoseveralmarketfactors,includinghighenergypricesandincreasedsubsidies.Thesefactorshaveledtoincreaseddemandforclimatetechsolutions,whichhashelpedoffsettheVCinvestmentslowdown.However,othersectorsaremixed,suchasagricultureandfood.WhilesomeagricultureandfoodtechcompanieslikePivotBiomayfeeltailwindsfromnitrogensupplychainchallenges,othersmayfeelsqueezedbyfallingconsumerconfidenceshiftingconsumerpreferencesawayfromhigher-pricedfoodsuchasalternativemeatstolower-costoptions.

Jan'19

Apr'19

Jul'19

Oct'19

Jan'20

Apr'20

Jul'20

Oct'20

Jan'21

Apr'21

Jul'21

Oct'21

Jan'22

Apr'22

Jul'22

Oct'22

Jan'23

Apr'23

500

400

300

200

100

0

IndexofUSVCInvestmentByClimateTechSubSector1

AgricultureandFoodEnergyandPowerTransportation&Logistics

600

200

150

100

IndexofCashandCashEquivalents:USClimateTechCash2

AgricultureandFoodEnergyandPowerTransportation&Logistics

250

50

0mneerldVC

2019202020212022

MonthsofCashRunway:USClimateTechSubSectors3

AgricultureandFoodEnergyandPowerTransportation&LogisticsMiddle50%ofCompaniesMedian

24.1

7.6

23.5

18.1

13.9

12.4

11.0

10.8

18.4

5.5

5.4

5.7

23.1

22.1

20.9

19.4

12.712.3

11.3

8.6

6.05.9

4.7

3.5

23.8

24.3

21.2

17.7

13.213.312.8

10.2

7.0

6.7

7.1

4.0

201920202021202220192020202120222019202020212022

FUTUREOFCLIMATETECH|202312

Notes:1)Trailing12monthsVCinvestmentindexedto100January2019.2)Annualizedmediancashandcashequivalentsindexedto100in

2019.3)Cashandcashequivalentsdividedbymonthlynetburn.

Source:CleantechGroupi3Connect,SVBproprietarytaxonomy,SVBproprietarydataandSVBanalysis.

3.0x

2.8x

Thetypicalenergy&powercompanyin2022spent$2.80togain$1ofnewrevenue

65.6%

7.8pp

63.4%

2.1x

2.1x

9.4

pp

1.9x

1.7x

56.2%

MedianEBITDAMarginQ1‘23

50

50%

0

-98%

-37

40%

-50

-91

-123%

-100

30%

-150

MedianEBITDAforsectorindexedtozero

20%

-223%

-202

-200

10%

COVID-19SpendingCuts

-250

Q1Q2