Climate Warriors,
As some of you may already know, this January we launched an AngelList rolling fund, CTC Fund I, to invest in badass founders we discover through the Climate Tech Cocktails platform with a focus on consumer climate tech. We focus on consumer climate tech because we believe that, ultimately, in order to solve climate change PEOPLE need to be empowered to drive the change with their time, energy and wallets.
So what is “consumer climate tech”, exactly, and why do we think it’s the biggest thing since sliced bread? Funny you ask. We’ve been working diligently with our first fellowship cohort to further refine CTC’s investment strategy and communicate our approach to consumer climate tech with the broader CTC community. Today, we are excited to share a bite size version of our investment strategy, and over the coming weeks we will go into more detail on each section below. If you are an accredited investor and would like to learn more ping us at info@climatetechcircle.com.
First, a huge shout out to our fellows who have worked their tails off on the content to come:
Elizabeth Blankenship, Isabella Todaro, Lexi DeMarco, Momoko Ishii, Natacha Jouonang, and Sanchit Joshi
We look forward to hearing your feedback as we release our research and thoughts around consumer climate tech because we view everything we do as a community effort. Thank you for your support, and see you soon!
Warmly,
Team CTC
CTC Consumer Climate Tech Strategy
At CTC, we firmly believe the solution to climate change begins and ends with people. That is why our fund focuses on companies transforming the way consumers live, including the electrons we consume, the food we eat, the houses we live in, the transportation we use and the clothes we wear. We calculated the size of the consumer climate tech market, and found these sectors currently present a combined market value of $455B+ and will grow to $1.2T by 2030. This opportunity is underpinned by a number of market forces, including consumer sentiment, regulatory tailwinds, corporate commitments and the outsized returns consumer climate tech companies have seen in recent years.
1. Changing Consumer Sentiment
Consumer spending accounts for nearly two thirds of US GDP, equating to over $14 trillion annually. Given the sheer scale, it is unsurprising that the production and consumption of household goods and services contribute to 72% of global greenhouse gas emissions. Following several years of large-scale climate disasters, approximately 78% of US consumers now prioritize sustainable living habits. Key consumer trends include reducing purchases with plastic packaging, investing in sustainable products, and adopting energy-efficient appliances and renewable energy sources.
2. Regulatory Tailwinds
Consumer climate tech benefits from two significant regulatory factors: a crackdown on greenwashing has emerged as regulators worldwide scrutinize climate-related marketing claims, and government spending on climate infrastructure and technology has never been higher. Regulators in the EU and the UK have effectively banned claims like "carbon neutral" without third-party verification, so corporations claiming sustainability must actually be so. Government spending on climate infrastructure and technology, spurred by the European Green Deal and the US Inflation Reduction Act, has facilitated the climate tech sector's growth. Consumer climate tech benefits from these regulatory developments, with the IRA already spurring hundreds of billions of dollars in investment in climate technology within its first year.
3. Corporate Commitments
In the evolving landscape of corporate sustainability, the two market forces we just discussed above are shaping the behavior of corporations: the push from consumers and the pull from government regulations. Rising consumer sentiment toward sustainability and climate-focused regulatory shifts have driven corporate claims and pledges. Over 900 publicly traded corporations have made net-zero commitments. However, companies have historically engaged in greenwashing, resulting in regulatory scrutiny and eroding consumer trust. The surge in ESG commitments is driven by a genuine desire to regain consumer confidence and comply with evolving regulations. Corporate giants are aiming to reduce greenhouse gas emissions and reach net-zero targets, creating significant opportunities for consumer climate tech startups to form strategic partnerships, receive investments, or even be acquired.
4. Historical Proven Returns in the Consumer Climate Tech Space
Between 2018 and 2023, climate tech startups attracted 25% of global venture funding, driven by growing consumer climate awareness, cost-effective eco-solutions, and government incentives. Successful consumer climate tech companies within CTC’s focus areas—energy, food and water, home, transportation, and apparel—demonstrate the sector's potential. Notable transactions include: Sunrun (residential solar) with a current market cap of $2.2B, Impossible Foods (plant based meat) with a $7B valuation as of 2022, Nest (smart thermostat) which was acquired by Google for $3.2B, and Tesla (EV) with a current market cap of $675B.
CTC Portfolio Companies:
Over the past 10 months, we have deployed capital through CTC Fund I into 9 incredible value aligned companies that are seeking to enable PEOPLE to drive the solutions to climate change.
They are led by founders with true grit who convert haters into renewable energy powering them to create magical climate tech solutions out of thin air. Bottom line: they’ll prove we can live in a world of abundance and still be in harmony with the planet. Here is a glimpse at our current portfolio companies:
Energy: Avalanche Energy is building small-scale nuclear fusion packs (that you can fit in your hand) which will enable decarbonized consumer activities, particularly transportation.
Food + Water: SciFi Foods is combining plant-based components with cultivated meat cells producing more sustainable meat options to reduce the GHG hoofprint of the protein production industry. Dispatch Goods is working to make reverse logistics possible in the food delivery space to eliminate packaging waste.
Built Environment: Copper is focused on developing energy storage equipped home appliances so that people can further electrify their homes. Gradient Comfort is building best-in-class heat pumps so we can continue to heat and cool our homes sustainably.
Transportation: Itselectric is developing curbside EV charging infrastructure for dense urban neighborhoods thereby increasing EV access for urban residents. Scalvy is paving the way for the decentralization and faster development of electric mobility systems through its modular electric powertrains.
Apparel: C16 Biosciences is producing synthetic palm oil without palm trees so that we can continue producing personal care products, cleaning supplies, and food without destroying rainforests.
We are extremely excited about all of the companies in our portfolio and are eager to announce more consumer focused climate tech investments soon. Over the coming weeks we will take a deeper dive into each of the market forces driving our conviction in consumer climate tech.
So stayed tuned, you bright, brave circles.