Goldman Sachs’ $75 Trillion Green Tech Roadmap: Top Sectors for Climate Tech Startups

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Goldman Sachs’ $75 Trillion Green Tech Roadmap: Top Sectors for Climate Tech Startups

In the rapidly advancing climate tech space, directing entrepreneurial energy effectively can make the difference between creating a breakthrough solution and being overshadowed by the industry buzz. According to a new report from Goldman Sachs Research (GS, October 31, 2024), a $75 trillion investment opportunity will unfold through 2070. For green tech entrepreneurs, this serves as a strategic guide indicating where capital will likely flow in the coming decades.

Key Investment Hotspots to Watch

• Power Networks ($7T)
  The opportunity isn’t limited to adding more solar panels. The real potential lies in modernizing and expanding power grids to accommodate renewable energy. This includes AI-driven grid management, advanced transmission systems, and smart distribution networks.

• Energy Storage ($5.1T)
  While battery technology is central, Goldman’s analysis highlights a need for vast investments in both short- and long-duration storage. Entrepreneurs can explore innovative battery chemistries, thermal storage, and mechanical storage breakthroughs.

• EV Infrastructure ($3.7T)
  The EV charging gap remains an unresolved issue. With EV adoption accelerating, especially in China, the infrastructure shortfall offers an enormous opportunity. Smart charging systems, fleet management tools, and vehicle-to-grid tech present exciting possibilities.

• Industrial Decarbonization ($9.3T)
  Though consumer-focused climate solutions dominate headlines, industrial decarbonization is essential. Goldman specifically emphasizes steel and cement production as areas urgently requiring innovative decarbonization solutions.

• Green Hydrogen ($1.3T)
  Although adoption has been slower than anticipated, green hydrogen still represents a vast opportunity. Entrepreneurs should focus on applications where hydrogen proves economically viable, especially in heavy industry and long-distance transport.

Market Signals: Opportunities and Challenges

Goldman’s research reveals dynamic market trends. With EV adoption and solar deployment surpassing expectations, there are growing opportunities for supporting technologies. In contrast, the slower uptake of clean hydrogen and carbon capture may suggest either a challenging market or an opportunity to address adoption hurdles.

The Nuclear Renaissance

An unexpected finding: Goldman predicts a doubling of global nuclear capacity by 2050. Beyond traditional plants, this opens doors for innovations in small modular reactors, nuclear supply chains, and safety technologies.

Multi-Dimensional Opportunities

Goldman’s report emphasizes a shift from “one-dimensional” solutions focused solely on renewable power to a “multi-dimensional ecosystem.” This points to opportunities for integration technologies that interlink various clean energy systems, platforms to manage complex energy networks, software and AI solutions for optimizing energy sources, and financial structures to support this evolving ecosystem.

Bottom Line for Entrepreneurs

Goldman’s research suggests that success in climate tech lies beyond simple renewable energy solutions. Real opportunities will emerge in addressing complex integration challenges, reducing industrial emissions, creating infrastructure for a multi-technology future, and developing scalable, global solutions.

As world leaders gather for COP29 in Azerbaijan on November 11th, entrepreneurs who can align their innovations with these investment trends—particularly in areas like industrial decarbonization and integrated energy systems—will be well-placed to capture part of this $75 trillion market.

In short, winning in this field will require more than clean technology alone; it will demand building the foundational systems that support the entire net-zero transition.

SBDC-OC and Climate Tech Finance Partner to Propel Seatrec’s Sustainable Ocean Power

Earlier this year, the Small Business Development Corporation of Orange County (SBDC-OC) received long-awaited confirmation: the scientific basis for an ocean-powered innovation had passed state verification, ensuring the corporation could confidently support financing for the startup behind the technology, Seatrec.

Seatrec will use a $1 million loan from the American Lending Center (ALC) to produce its innovative infiniTE ocean float, which generates energy. This funding is backed by an 80% guarantee from California’s Climate Tech Finance program under the State Small Business Credit Initiative, managed by SBDC-OC. Climate Tech Finance and SBDC-OC operate under California’s Infrastructure and Economic Development Bank (IBank), which supports small businesses and entrepreneurs, especially those from underserved economic sectors, through loan guarantees and other programs.

Climate Tech Finance verified Seatrec’s subsea power technology and its environmentally-friendly impact, allowing SBDC-OC’s loan committee to approve the guarantee, marking its first Climate Tech-supported transaction and the first state-guaranteed loan for ALC.

“We’re thrilled to support Seatrec’s advancement and expansion of its remarkable technology,” said SBDC-OC President Jim Ely, who helped secure the loan guarantee through Climate Tech Finance. “It’s inspiring to know our efforts aid oceanic research and industry while boosting the economy by sustaining and creating jobs.”

SBDC-OC’s CEO, Michael Ocasio, expressed excitement about completing their first Climate Tech Finance deal. “This program is transformative, offering great potential to help scientist-entrepreneurs advance innovations that enhance quality of life. We’re excited to continue supporting them on their journey to success.”

Launched in 2018 as a collaboration between the Bay Area Air Quality Management District and IBank, Climate Tech Finance is dedicated to supporting greenhouse gas-reducing technologies and clean industries in California. Founded in 2001 as a nonprofit public benefit organization, SBDC-OC is one of seven IBank financial development corporations responsible for state loan guarantees and other economic programs across California.

Founded in 2016 by Dr. Yi Chao, Seatrec’s technology utilizes fluctuating ocean temperatures to generate renewable energy, powering ocean research tools like floats, gliders, and Autonomous Underwater Vehicles (AUVs). Researchers use Seatrec’s technology for tasks such as whale monitoring and ocean floor mapping. Seatrec also promotes equity in ocean research by supporting underrepresented oceanographers.

ALC, an Irvine-based private lender with a strong partnership with SBDC-OC in Santa Ana, offers federal and state financing programs. Larry Trujillo, senior advisor at ALC and SBDC-OC board member, emphasized their shared mission of supporting disadvantaged business owners and noted the economic benefits of the loan, which is further secured by an 80% state guarantee.

“Climate Tech Finance provides unique opportunities for lenders to back promising clean-tech ventures at early stages,” Trujillo said. “This program enables us to support innovative companies that might otherwise be seen as too risky.”

Axeleo Capital Powers Up for Green Revolution with €125M Climate Tech Fund

Despite a challenging fundraising landscape, the French venture capital industry proved remarkably resilient, emerging as one of Europe’s strongest in 2023. Dealroom reports that France and Italy were the only two countries among Europe’s top 10 tech markets where venture funds closed more deals in 2023 than the previous year. French VCs secured $4.7 billion through 29 newly-closed funds.

This momentum has carried into 2024, with fresh funds launching to meet the rising demand for innovation. Notably, Wind has raised an initial €90 million of a targeted €130 million fund dedicated to European deep tech startups in the climate sector. Meanwhile, Quantonation Ventures has raised €70 million in its second close toward a €200 million fund for global startups.

Reflecting this trend, Axeleo Capital, a leading French venture firm, announced the initial close of its €125 million Green Tech Industry I (GTI I) fund. Supported by the Révolution Environnementale et Solidaire fund (backed by Crédit Mutuel Alliance Fédérale’s societal dividend), Bpifrance (an investor in firms like Gamestream and Kurma Partners), and the Fonds National de Venture Industriel (FNVI) managed by Bpifrance under France’s Plan 2030 initiative, along with Veolia, the fund aims to accelerate green tech investments.

Presently, financing for industrial startups building first plants is scarce, especially for ventures focused on green innovation that face unique industrial and commercial risks. Axeleo Capital’s GTI I fund is classified as Article 9 (SFDR) and is impact-driven, dedicated to supporting innovative green technologies across Europe.

Expanding into European greentech, Axeleo Capital now manages nearly €300 million in assets. The firm is positioning itself as a key player in industrial innovation financing and continues to develop thematic funds. It offers equity investments from seed to Series B rounds, along with operational and strategic support for B2B software and greentech startups.

With a final target of €250 million, GTI I plans to make 15-20 investments across Europe, with lead investments ranging from €3 million to €10 million in sectors such as energy (renewables, storage), chemicals and materials (biomaterials, plastics recycling), agriculture and food (bio-based fertilizers and pesticides), and mobility (electric motors, decarbonization of air and sea transport).

Investment portfolio highlights include an initial investment in Sweetch Energy, a startup focused on osmotic energy—a renewable, controllable energy source. This funding supports the development of INOD® technology, now being piloted in the Rhône delta.

Axeleo Capital has also invested in promising startups, such as:

- Trustpair: A payment security platform preventing corporate fraud,

- Triver: A fintech transforming small business finance access,

- Kestra: An orchestration platform simplifying workflows for both engineers and business teams.

The GTI I fund is led by experienced industry professionals. Venture Partner Guillaume Sarlat, based in London, brings over 20 years of tech and greentech investment experience. Paris-based Partner Marc Lechantre has 16 years in automotive industry roles with Stellantis, spanning production, strategy, and global management. Mathieu Viallard, Axeleo Capital’s co-founder, leads operational involvement, with Sandra Dubos recently joining as Investment Director. With a background in biochemistry and over 15 years in tech and six in venture capital, Sandra brings expertise in deep tech, chemistry, and healthcare.

Eric Burdier and Mathieu Viallard, co-founders of Axeleo Capital, described GTI I’s launch as a significant advancement in their mission to support groundbreaking innovation in decarbonization, green tech, and European industrial renewal. Sarlat and Lechantre expressed gratitude for their backers, noting the first close strengthens Axeleo’s goal of fostering Europe’s future green industrial sector.

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