After the "capital winter" in 2019 and the new crown epidemic in 2020, the carbon neutral industry in 2021 is going to be the main theme of the "3060 plan".
After the "capital winter" in 2019 and the new crown epidemic in 2020, the carbon neutral industry will enter a high growth period in 2021 under the guidance of the main theme of the "3060 Plan", and the investment scale of the carbon neutral primary market in only half a year has reached a record high (RMB 40.529 billion). The investment scale of carbon neutral primary market in only half a year has reached a record high (RMB 40.529 billion).
EVERYONE believes that there are five paths to carbon neutrality: source reduction, energy substitution, recycling, energy efficiency, and carbon negative technologies.
Energy substitution and energy efficiency are currently the most important ways to achieve carbon neutrality, and the primary market projects are also the most concentrated. In contrast, recycling and carbon-negative technologies are still in their infancy, with fewer projects. And source reduction is not yet visible in the primary market.
It is important to note that the selection of carbon neutral companies in this article is limited to companies that only provide carbon neutral technologies or services.
Datamaxx
Datamaxx is a venture capital organization focusing on the fields of information technology, intelligent manufacturing and energy-saving and environmental protection, medical and healthcare, large consumption and enterprise services, culture and media, and military industry. As early as 2011, the organization invested RMB 210 million in Jiechi Technology, which is used in solar energy wet process equipment, in its Series A round.
Since 2020, Dachen Caixin*** has invested in 11 companies, with a cumulative total of 19 carbon-neutral and related investments, but the vast majority of them were made before the "3060 Plan" was put forward. Its carbon-neutral industry layout time is earlier, and mostly focuses on pre-investment.
DeTong Capital
DeTong Capital is an organization with rich local and cross-border investment and M&A experience. DT Capital also started its investment in Carbon Neutral at a very early stage, and in 2011, it participated in the RMB210 million Series A investment in JCI. Since then, DT Capital has invested in 9 companies and participated in 15 investment events. Carbon Neutral's investment rounds are at the front of the list, and its investment scale is large, with most of them exceeding RMB 100 million. The organization focuses on investing in carbon-neutral companies in energy substitution and energy efficiency.
Oriental Fortune
Founded in 2006, Oriental Fortune is dedicated to investing in target companies with growth and listing potential. The earliest investment in the field of carbon neutral is the angel round investment in 2015 biomass new energy technology enterprise "gengneng new material", carbon neutral and investment events totaled 12 times, investment in the company **** there are 7. 2015 before the institution of the investment rounds on the back, and the beginning of 2017 the institution of the investment bias towards the late stage of investment or strategic investment, the amount of a single investment also strategic investment, and the single investment amount has gradually become larger.
High Tide
High Tide released its Carbon Neutrality Initiative in February 2021, advocating hundreds of companies it invested in to formulate low-carbon transition plans, and in March, it released the first carbon neutrality research report in the investment industry, which summarizes the progress made towards achieving carbon neutrality.
According to Li Liang, a Partner at High Tier, carbon neutral companies that are in the early stages of technology development and have innovative technologies are in great need of PE/VC funding.
HGT is involved in a wide range of carbon neutral sectors. We have Carbon Stop, a consulting service provider that specializes in carbon emissions management, as well as Jufei, a company that helps reduce emissions from agricultural production, and Bluecrystal BioTech, a company that develops PHA, a biodegradable material.
Sequoia Capital China
Sequoia Capital China's carbon neutral investment is more focused on energy alternatives, and as early as 2012, it invested in photovoltaic (PV) system provider Guruwatts in its Series A round. From 2011 to 2021, Sequoia Capital China has made as many as 11 investments in energy alternatives, and has made investments in both the early and late stages, with the amount of single investment above ten million dollars. In the field of energy saving and efficiency improvement and resource recycling, the investment organization also has 4 investment events.
In addition to specific investment events, in March 2021, Sequoia China and Vision Technology Group*** established a 10 billion RMB Carbon Neutral Technology Fund, and in April, Sequoia China released a Carbon Neutral Report, which discusses how investment institutions can help explore the technology and application of carbon neutrality.
Matrix Partners China
Matrix Partners China is a joint venture established in China by Matrix Partners, a world-renowned venture capital organization, which has invested in different fields at different stages. The first time the investment institution involved in carbon neutral investment was in 2011, when it invested in the power optimization and energy saving company "Suntec Puhua" in round A. Since then, it has made investments in 2015, 2017, and 2021. Since then, there have been corresponding investment events in 2015, 2017 and 2021, mainly in energy substitution and energy saving and efficiency, two carbon-neutral realization paths.
Green Capital - US-China Green Fund
Green Capital is the first private equity fund in China to institutionalize ESG policies and quantitatively assess the green impact of its investments. The first investment made by the investment organization after its establishment was the strategic investment in the energy saving and emission reduction service company "Oriental Low Carbon" in 2016.
Green Capital's investment rounds are evenly distributed, covering both the early and late stages of investment, with each investment exceeding RMB 100 million, a large investment scale. Most of the investment direction is the direction of resource recycling, such as the green recycling packaging enterprise "box box **** with" and municipal solid waste disposal enterprise "Nuoco environment".
Dr. Bai Bo, Chairman and CEO of Green Motion Capital, mentioned in an interview in June 2021 that carbon neutrality will change the original development path of many industries and bring trillion-dollar investment opportunities. The realization of carbon neutrality will not only help companies reduce costs and increase efficiency, but also help them meet the requirements of regulatory agencies earlier and better connect to the international market.
Shenzhen Venture Capital
Shenzhen Venture Capital is funded by the Shenzhen government and guides the establishment of social capital funding, the organization's carbon neutral investment in as many as 10 events, investment in the company **** there are seven. VCI invested in a new energy operator "Fengdian Energy" in 2011, and then gradually expanded the field of carbon-neutral investment. In addition, the company has also invested in a number of energy-saving and energy-efficiency paths, and the investment rounds are more advanced and larger, with most of the single investment amounts exceeding RMB 100 million.
Tongchuang Weiye
Tongchuang Weiye is an investment institution that focuses on emerging industries with industry chain investment as its entry point. The investment layout of this investment institution is also early, in 2011, the angel round investment in Yalande new energy company. As of the first half of 2021, the organization has as many as 26 carbon neutral investment events.
Zhang Yiwei, a partner of Tongchuang Weiye, suggested in an interview as early as 2015 that environmental protection-related business would account for 20% to 25% of the entire Tongchuang Weiye, which would be an opportunity for economic transformation and upgrading.
Innovation Angel Fund
Innovation Angel Fund began to lay out carbon neutral investment in 2016, and invested in new energy automobile power system developer "ShouDao Technology" in the angel round at the end of 2016. Since then, it has made 11 carbon-neutral investments and invested in 6 companies***. The investment rounds are early, and most of the early investment amount is not high.
2021 will be a year of explosive growth for the Carbon Neutral track, and the above 10 investment institutions, with their forward-looking strategic layouts and strong support for the Carbon Neutral industry, will play a good role in leading the development of the entire Carbon Neutral market.