Building the Next Generation of Energy Transition Leaders

Is the climate tech VC ecosystem delivering the energy transition tech champions we need?

We counted every climate-tech pure play, private or listed, worth $1B or more at the end of 2021 and again in September 2026. We sorted them into three tiers: unicorns (worth $1B or more), contenders (worth $5B or more) and champions (worth $20B or more). The base of the pipeline has grown strongly. Venture-backed energy-transition companies rose 68% to 1,741, and unicorns rose from 345 to 390. Conversion rates worsened as we lost more contenders and champions that we gained. This was driven by Chinese valuation volatility as the number of Western contenders and champions grew during this period. Contenders fell from 115 to 110 and champions from 31 to 20, as many of 2021’s leaders, mostly Chinese solar, EV and lithium makers, lost value when the bubble deflated. New winners are still emerging: seven companies became champions, led by Bloom Energy, Crusoe and LS Electric, and the 49 new contenders created $412B of value. Outside China, every tier grew. But we estimate the transition needs more than 100 global champions, and there are 20 today. Too few companies make it from promising start-up to industrial scale, which is why we believe collaborative investing across the “missing middle” is essential.

Download the full report from True North Institute and the All Aboard Coalition to read the complete analysis.