The trend in new construction and retrofits can only be described as “extreme green” or “net zero.” Venture capitalists have plowed more than $4 billion into the development of sustainably designed, energy efficient buildings. Now, they are looking at ground-breaking technologies to further develop this space, according to a report just released by Boston-based Lux Research.
To understand investment activity in the green buildings space, Lux Research analysts have followed 332 venture transactions— amounting to $4.06 billion in 160 companies— since 2000. Of the 332 investment rounds in companies that offer technology and materials for green buildings, 152 were series A investments and 83 were series B. Start-ups from North America have attracted 77 percent—or $3.1 billion— of the green building VC invested so far.
Last year, however, nearly 50 percent of the funding—totaling $445 million—went into 15 late-stage investments, signaling the maturation of the first wave of green building start-ups.
Meanwhile, new opportunities are emerging in a number of leading-edge areas, including integrated design, on-site power generation, energy services and the advanced building envelope.