Source: Pitchbook. Analysis by Beacon Economics
  • Energy Transition covers a diverse array of companies engaged at the very heart of private sector efforts to transition energy consumption away from carbon-based fuels. The type of activity in the segment is typified by Mainspring Energy, headquartered in Menlo Park, California, which received $290 million in VC funding in 2022, the most of any Energy Transition company in California that year. Mainspring Energy produces linear generators for commercial, industrial and utility customers, that can be fueled by either hydrogen, ammonia or biogas. The company was the recipient of the Bloomberg New Energy Finance Award in 2023.
  • In 2021 and 2022 combined, more than $6 billion was invested in Energy Transition companies in California. In 2022, VC investment in Energy Transition was three times greater than in Transportation and Mobility in the state, which had previously received the highest amount of VC investment in Clean Tech and was the segment that received the second-highest level of investment in 2022. In 2022, Energy Transition companies accounted for seven of the ten largest VC clean tech deals in the state. In short, VC investment in Energy Transition is very much in the ascendancy in California.