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Highlights
- In 2016, Faraday Future completed the first Clean Tech deal over $1 billion ($1.08 billion) in California. This deal accounted for 53 percent of California’s Clean Technology investment that year and 86 percent of their Transport and Mobility investment. Despite none occurring in 2017, deals worth $500 million or more became more common in the years following, with 16 such investments being completed between 2018 and 2021. These 16 deals accounted for 53 percent of the total Clean Technology investment in California from 2018-2021.
- In the past few years, large, multi-billion-dollar deals have been driving much of the investment in California. In 2021, deals over $500 million, of which there were only four, accounted for 54 percent of the Clean Tech investment. Similarly in 2020, the six deals over $500 million made up 49 percent of that year’s total Clean Tech investment.
- Though not at the same pace as deals over $500 million, investments worth between $500 million and $250 million have also increased in the last few years, going up by an average of 90 percent each year from 2018-2021. Prior to 2016, there had only been 2 Clean Technology investments worth between $250 million and $500 million, both going to Karma Automotive of Irvine, CA. In 2021, there have already been 8 deals of that size. In 2019, $925 million came from deals in that range, but in 2020 and 2021, $2.15 billion and $2.7 billion was generated, respectively, through investments of between $250 million and $500 million.
- Despite growth at the top end of investments into Clean Technology in California, deals worth less than $100 million have not been able to maintain a similar growth rate. Since 2018, total investment amount worth $10 million to $100 million and less than $10 million have grown 27 percent and 10 percent on average, respectively. However, this may have more to do with the difficulty in keeping up with the growth of some of the largest companies than it does with stagnation at the bottom end of the industry, as the number of deals had roughly doubled from 2016 to 2020 in both categories.
