Global early-stage venture capital investments in digital energy-efficiency and demand-side flexibility start-ups, by type of new business model, 2015-2021

Sources

IEA analysis based on Cleantech Group, i3 database.

Notes

Classification includes start-ups that are developing energy technologies, services and solutions (hardware and software) and that are engaging with end users directly. Start-ups that focus only on manufacturing or distributing hardware are excluded. Energy as a service in buildings includes smart heating and cooling, energy management systems, lighting and smart devices for residential and commercial buildings, as well as so-called “pay-as-you-go” business models. Distributed energy resources and grid management includes virtual power plants, energy trading schemes (including peer-to-peer), energy as a service for power grids, and off-grid access solutions. Early-stage investments include seed money as well as series A and B financing rounds. Figure excludes outlier investments above USD 150 million in a single deal that distort annual trends. These aggregated to about USD 350 million in 2020.