Happy Holidays! Here’s the December edition of Greenbackers Spotlight, our member’s newsletter! Every month we feature “investment ready” deals across cleantech for your review. New for this month:

• Balance Eco – transforming the Voluntary Carbon Market with an innovative solution to environmental restoration: “Balance Units”—100-year commitments that align with the natural carbon cycle. Balance Units ensure long-term impact by funding biodiverse forests and empowering local communities. This approach not only combats climate change but also supports sustainable livelihoods and ecosystem restoration. With user-friendly calculators tailored for large corporations, SMEs, individuals & consumer apps promoting community engagement, Balance Eco enables swift, credible measurable transformation of carbon footprints into meaningful, regulated action. (Pre-Series A, £3m)

• Cuantec – circular sustainability by upcycling shellfish industry waste into high-quality chitosan, a fully biodegradable, ocean-friendly biopolymer. Their innovative process supports eco-friendly solutions to fossil-fuel-based polymers across industries such as healthcare, agriculture, and water treatment, while adhering to stringent operational standards. (£1.1m Bridge Round).

Welcome to December’s Spotlight – your monthly guide to climate tech deals from Greenbackers Investment Capital.

As 2024 draws to a close, PwC’s latest State of Climate Tech report highlights while total climate tech financing dropped 29% year-over-year to $56 billion, several bright spots emerge that signal the sector’s resilience and maturation.

First, AI-powered climate solutions saw remarkable growth, raising $6 billion in just the first three quarters of 2024 – already surpassing 2023’s total. This surge reflects investors’ recognition of AI’s potential to drive efficiency improvements across sectors, from optimising renewable energy systems to enhancing climate resilience.

Speaking of resilience, adaptation technology is gaining momentum, featuring in 28% of climate tech deals. This shift acknowledges that alongside emissions reduction, we must invest in solutions that help communities and businesses manage climate impacts – a theme that resonated strongly at COP29 in Baku.

The conference delivered a significant breakthrough for climate finance with the approval of standards governing international carbon credit trading. This framework could finally bring structure to the voluntary carbon market, potentially unlocking substantial investment flows from high-income to developing regions.

However, 2024 also brought sobering lessons about the challenges of scaling hard tech in Europe, highlighted by recent developments at Northvolt. While the Swedish battery manufacturer’s Chapter 11 filing sparked headlines, it underscores the critical importance of patient capital and strategic partnerships in building climate solutions. As the sector matures, we’re seeing increased emphasis on sustainable growth over rapid scaling – a principle that aligns perfectly with Greenbackers’ focus on commercially viable climate tech.

As always, you’ll find our latest curated deals in the Cohort update below, where you can connect directly with innovative cleantech founders who are building tomorrow’s solutions with today’s commercial realities in mind…

Greenbackers Climate Investment Showcase: This is the big one! London Cleantech Funding Event – 29/01/25… With 24 innovative companies presenting and dedicated networking time, this is your opportunity to fund and shape the future of sustainable technology (Get more info here).

Updates on Greenbackers Current Cohort

🪲 FlyBox (Insect-based waste management solutions, £850k sales, £4M grants, seeking £1M, EIS Approved) Nominated by Innovate UK for The Earthshot Prize for their revolutionary Insect Waste Management technology that converts organic waste into valuable proteins and fertilisers. (more)

🌊 Sundew (Biological solutions for aquatic ecosystems, Raising £4.5M Series A, EIS pre-assurance in process) Recognised in Nordic Impact Lab’s top ESG screenings for their work on improving aquatic ecosystems and addressing red tides and invasive species. (more)

〰 Inyanga MEG (Turn-key tidal energy solutions for offshore renewables, Raising last gap in £5m Series B, EIS Approved) Secured funding approval for the Interreg North-West Europe SHINES project and established new Canadian division in Nova Scotia to drive offshore renewable development, appointing Kiley Sampson as Vice President. (more)

🔋 Inition (electrode production technology to make battery production more profitable and sustainable) Closing bridge round, with larger Series A round to follow in the new year!

⚗️ Proteum (low-to-negative Carbon Intensity (CI) renewable hydrogen, Renewable Natural Gas (RNG) and methanol using proprietary reformer technology) Increased funding round to $20m, following market interest.

♻️ IR Power (Proprietary electricity recycling technologies, Raising £3.8M Series A – syndicate formed, seeking lead) Deploying paid model installation at UK customer, following successful pilot projects at global Tier 1 automotive manufacturers. (more)

📄 Nafici (converting agricultural residues into paper pulp for the paper packaging industry as an alternative to wood pulp, Series A1 £1.1m and Series A2 £6.1m, 2/3 committed) EIS pre-assurance now approved!

🌉 Horizon Bridge (Offshore wind cable monitoring, bridging technology and insurance, Raising £2m Seed, EIS approval in process) CEO Joel Ferreira chaired key panel at the 4th Annual Submarine Power Cable and Interconnection Forum in London, discussing financing and opportunities in submarine power infrastructure. (more)

💼 Qualus (Sustainable leather processing technology, EIS approved) Selected as one of 150 companies worldwide to present at the 16th annual New England Venture Summit, connecting with VCs and strategic partners. Successfully closed bridge round, Series A round launching in the new year! (more)

🔧  NEOL Copper (Innovative lubricants to stop wear and efficiency loss in machinery, Raising £5m Series A, SEIS & EIS approved) Demonstrated impressive results in Metso:Outotec grinding mill trial, achieving OEM temperature specifications in 1000 hours while reducing spray pressure by 3x and improving equipment longevity. (more)

💻 Angara (AI platform for optimizing industrial asset efficiency, Raising £4.1M Series A) CEO Alex de Valukhoff featured in industry article sharing insights on energy transition, AI innovation, and decarbonization pathway. (more)

🧪 Sonichem (Innovative Bio-Based Chemicals, Raising £2.5m EIS) Moving ahead with plans for their first commercial plant in Scotland by 2027, set to process 15,000 tonnes of forestry material annually into sustainable chemical alternatives. Featured in UKTN for their innovative approach to transforming sawdust and woodchips. (more)

🧼 Squeaky Clean Energy (Clean energy marketplace platform) Announced strategic partnership with Zero Carbon Forum while continuing to disrupt C&I energy supply through their marketplace connecting buyers directly with renewable generators. (more)

🚽 Propelair (World’s lowest-water-flush commercial toilet, Raising £5-10M Series B, EIS approved) Launched OneThreeFive toilet system using only 1.35 litres per flush, achieving 85% water reduction and featuring IoT connectivity for smart maintenance. (more)

🚌 KleanDrive (Converting diesel buses to electric) Selected for the Local Authority Transport Decarbonisation accelerator, focusing on innovative solutions for electrifying a fleet of 30 internal combustion engine vehicles. (more)

🔥 Caldera (Storage Boilers help the industry decarbonise heat production, using natural and recycled materials, Raising £10M Series A) CEO Andy Joynson discusses their innovative approach to industrial heat decarbonisation in new interview at EMEX 2024. (more)

⚡ OOMPH EV (Electric vehicle charging solutions, Raising £1m Seed, EIS approved) Highlighting growth in UK charging infrastructure with PowerLink solution delivering up to 60kW rapid charge through existing power supplies, as UK reaches 71,500 public chargers across 36,000 locations. (more)

Let Greenbackers know if you’d like more info or an intro to any founders – their detailed profiles can be viewed on our online showcase here.

Greenbackers Updates

2024: A Year of Growth & Connection

• Investment Showcase Evolution: Our May event in Canary Wharf introduced investor speed dating, facilitating 105 face-to-face meetings between cleantech ventures and investors. Next one: London, January 29, 2025 – Register here.

• Digital Expansion: We launched our monthly newsletter to provide deeper insights alongside our LinkedIn presence and reach more of the cleantech community.

• Industry Presence: We had key speaking engagements at EIC North Sea Decarbonisation Conference, All Energy Glasgow, Ocean Novation Hague, and Marine Energy Week at London’s BT Tower.

• Corporate Growth: Technip FMC technology scouting contract renewed and more new corporate partnerships are in development for 2025.

• Ecosystem Enhancement: We greatly expanded our Ecosystem Partner Program this year, which provide value-added services beyond the equity and debt capital from Greenbackers… Sheffield Haworth, Deazy, Scintilla IP, and XE, joining Withers Worldwide, SDI, Ryan, and Solar Impulse Foundation. Watch our interview with Dan MacNeill of Sheffield Haworth here. Look out for upcoming news on additional ecosystem partners in the new year!

• We welcomed Sheffield Haworth as our newest Ecosystem Partner, bringing their 30 years of global executive search and leadership advisory expertise to our cleantech community. This collaboration will help our ventures build high-performing leadership teams crucial for scaling cleantech innovations. Learn more about the partnership here.

• Knowledge Sharing: Delivered an impactful webinar series with Withers on emerging employment legislation and cleantech sector developments. Access the recordings here.

• Greenbackers joined Clean Tech For UK’s Investor Coalition. Launched in early 2023, supported by Cleantech Group and Breakthrough Energy Ventures, it now represents 14 leading cleantech investors and company builders. Together, we’re ensuring that the UK seizes the generational opportunity of cleantech innovation—driving economic growth, job creation, and global leadership in clean technologies. Read more about this here.

Looking Ahead to 2025

• Grant Funding Alert: New opportunities announced including Innovate UK’s £15M Smart Grant for SMEs, £3M Canada-UK Collaborative R&D fund, and programs like the £40M Water Breakthrough Challenge. Multiple deadlines through early 2025 – connect with our Ecosystem Partner Ryan to explore these and other non-dilutive funding options for your cleantech venture.

Future Events: Meet Us & Our Ventures

• Jan 15: Greenbackers in London we’re attending an invitation-only roundtable with DESNZ officials to explore how UK Government can better support investors driving growth in key industries.

• Jan 28: Greenbackers in London for a Private Partners/Sponsors Reception Prior to Greenbackers Climate Investors Showcase.

• Jan 29 Greenbackers next big Investment Pitch event! Click here to attend as a funder or to apply as a cleantech venture raising funds

We will be back again next month with more deals and a climate tech news, in the meantime feel free to reply or reach out to us on LinkedIn.

From all of us, to all of you – Happy Holidays! ⛄❄️🎅🎁🎄🤸‍♀️👍 from Robert Hokin, Andrew Smith, Mark Hannigan, Annika Borrmann & Anton Themen.