IVCA Feature: 2021 VC & PE Trends … Clean/Green Technology & Special Purpose Acquisition Companies

IVCA Feature: 2021 VC & PE Trends … Clean/Green Technology & Special Purpose Acquisition Companies

August 4, 2021

With on-going transitions continuing to take place in the pandemic era, Venture Capital and Private Equity are carrying on with deals, acquisitions and investments. The IVCA is doing a series on specific trends of 2021 for VC and PE. The following is a deeper dive into VC commitment towards clean & green technology and the latest trend of “Special Purpose Acquisition Companies” (SPACs) for Private Equity investments.
 
Venture Capital … CLEAN & GREEN TECHNOLOGY
 
GreenTechMedia.com, ‘The Rules for Early-Stage Cleantech Venture Capital Investment in 2021’
 
Create incremental improvements, serve new national climate-change imperatives, and put social impacts front and center. Clean technology venture capital investment strategies for the next decade will look much different than those deployed over the past two decades. 
READ HERE: https://www.greentechmedia.com/articles/read/lessons-for-early-stage-greentech-venture-investing-for-the-next-decade 
Forbes.com, ‘Silicon Valley Is Back In Cleantech. Will This Time Be Different?’
 
In the early 2000s, Silicon Valley funded cleantech with little understanding of the traditional industries that were supposed to want its innovations. After losing billions of dollars, major Silicon Valley VCs decided that cleantech and VC must be incompatible—until the recent flood of easy ESG and impact capital changed their minds.
 
READ HERE: https://www.forbes.com/sites/walvanlierop/2021/07/05/silicon-valley-is-back-in-cleantech-will-this-time-be-different/?sh=71aff2672783 
PItchbook.com, ‘UK to Pump $235M+ in Green Tech Amid Growing VC Investment’
 
The new cash boost, which is expected to create more than 60,000 jobs, follows the UK government's November announcement of its 10 Point Plan for a green industrial revolution, which targets 250,000 new jobs. The plan will see the government invest £12 billion into green sectors with the aim of delivering a net-zero carbon economy by 2050.
 
READ HERE: https://pitchbook.com/news/articles/uk-government-green-technology-vc 
Podcasts.Google.com, ‘A New Era for Climate-Focused Venture Capital’
 
During the height of the pandemic in 2020, venture capital poured into climate technologies at record levels. It was a happy surprise amidst a collapsing economy and years of investment stagnation. Venture investments in climate tech topped $17 billion in 2020 across more than 1,000 deals. Five years ago, it had fallen to $5.2 billion — a 30 percent decrease from a previous peak in 2011.
 
LISTEN HERE (55 Minutes): https://tinyurl.com/VCGCTech 
Private Equity … SPECIAL PURPOSE ACQUISITION COMPANIES (SPACs)
 
CNBC.com, ‘What is a SPAC? Explaining one of Wall Street’s hottest trends’
 
So what exactly is a SPAC? What would make some companies pick a SPAC over an IPO? And why are investors lining up to jump on the trend? Here’s what you need to know about SPACs.
READ HERE: https://www.cnbc.com/2021/01/30/what-is-a-spac.html
 
Pitchbook.com, ‘Private Equity Plays a Starring Role in SPAC boom
 
For some firms that were early adopters, this (is a) continuation of a longtime strategy. Other firms are dipping a toe into the SPAC pool for the first time. For veterans and newcomers alike, these deals have become a popular path to capitalizing on the market volatility driven by (the) pandemic
 
READ HERE: https://pitchbook.com/news/articles/private-equity-spacs-2020s 
ZacharyScott.com, ‘SPACs: Private Equity Goes Public’
 
Everybody is talking about them. Lots of opinions. Most are related to whether SPACs constitute a good investment. With short sellers growing, many are betting they are not. Before coming to any conclusions about SPACs, it is important to separate the chatter about investment risk and understand how this might apply to an owner’s decisions when approached by a SPAC. 
READ HERE: https://www.zacharyscott.com/blog/blog/capital-finance/spacs-private-equity-goes-public 
 
EY Global on YouTube, ‘NextWave Private Equity podcast: Why PE is on the SPAC Inside Track’
In this episode of the NextWave Private Equitey podcast, Karim Anani and Alex Zuluaga, EY Global SPAC Practice Co-Leaders, join Winna Brown to explore why SPACs attract PE investors and advise how they should manage SPAC transactions.
LISTEN HERE (24 Minutes): https://youtu.be/lVSbCtYVCAo