Clean Technology investments reached their high-water mark in 2021 in both California and the nation. The state saw $14.7 billion in investment, or 87 percent more than it received in all of 2020. Not to be outdone, the U.S. increased its investments from 10.2 to 24.6 billion, 140 percent higher year-over-year. The transportation and mobility sector was the largest reservoir for investment in both—53 percent in California and 40 percent in the nation. Built environment companies like GreenFire Energy (maker of geothermal energy systems) and Sunverge (developer of a digital platform for renewable power) experienced the second-most investment in California (14.4%), while energy transition companies placed second in the U.S (9.8%).
As prolific as California was in 2021, the state’s share of all clean tech funding in the nation declined. In 2020, roughly three out of every four dollars invested in the nation were invested in California-based firms. In 2021, it was three out of every five dollars. Venture ecosystems outside of California appear to have strengthened, with New York, Texas, and Massachusetts increasing their share of investment over the same period.