BOSTON – The Baker-Polito Administration today announced the launch of the 2030 Fund through the Massachusetts Clean Energy Center (MassCEC). The new $50 million fund will support the advancement of clean energy and climatetech by investing in early-stage start-ups with promising and bold solutions to the Commonwealth’s most challenging climate concerns. The 2030 Fund will target entrepreneurs who are creating highly technical tools that are critical for decarbonization, which are areas that haven’t seen significant investment from traditional venture capital funds.
“Reaching the Commonwealth’s decarbonization goals requires passion, creativity, and entrepreneurial belief, and the new 2030 Fund will assist those companies who demonstrate these core values,” said Governor Charlie Baker. “With this investment fund, Massachusetts can begin to scale the most impactful solutions and better deliver clean energy benefits to all residents of the Commonwealth.”
“By further supporting Massachusetts-based clean energy companies, our Administration will be able to better position the industry in achieving critical technical, commercial, and manufacturing milestones here in the Commonwealth,” said Lieutenant Governor Karyn Polito. “Investing in ClimateTech through the 2030 Fund offers tremendous potential to grow not only promising start-ups but the whole industry in Massachusetts, and we are excited to see this long-lasting, sustainable fund connect entrepreneurs to venture investors, furthering the Administration’s efforts in finding innovative solutions to our climate challenges.
Massachusetts continues to lead the nation in climate action, including its efforts to decarbonize the state in order to reach emissions goals and achieve Net Zero in 2050. These efforts include the development of the Massachusetts 2050 Decarbonization Roadmap, the Clean Energy and Climate Plan for 2025 and 2030, and the signing of the Climate Act, An Act Driving Clean Energy and Offshore Wind, all lay out a clear path toward achieving net zero emissions by 2050. Significantly, the 2030 Fund will enable the technologies needed to accelerate the Commonwealth’s transition.
“The Commonwealth has been and continues to be a national leader in the clean energy sector, and a centerpiece of that industry is cutting-edge ClimateTech innovation,” said Energy and Environmental Affairs Secretary Beth Card. “This investment in sustainability, and the companies that flourish, as a result, will boost the state’s clean energy transition, help us achieve our climate goals, and support local, regional, and state economies for years to come.”
MassCEC will focus investments made by the 2030 Fund on the following areas: Net Zero grid, high-performance buildings, clean transportation, offshore wind, and other high-impact areas. Additionally, the agency plans to make commitments through 2030 on new investments, follow-on investments, and venture debt.
“Early-stage funding is crucial to growing the Commonwealth’s burgeoning clean energy economy sustainably in order to scale solutions that will effectively address climate concerns,” said Massachusetts Clean Energy Center CEO Jen Daloisio. “MassCEC is the most active climatetech investor by deal volume in Massachusetts, and the Baker-Polito Administration looks forward to partnering with more passionate entrepreneurs as we work together to expand the industry.”
“The Baker-Polito Administration’s 2030 Fund will provide significant resources that will signal to the market that Massachusetts remains committed to driving the commercialization of climate technologies,” said Hilary Flynn, Managing Director of Investments at MassCEC. “The MassCEC team will invest in early-stage, Massachusetts-based startups with high potential to reduce greenhouse gas emissions, create jobs, and maintain the Commonwealth’s global climatetech leadership role.”
The 2030 Fund is a continuation of MassCEC’s successful investment activity. Since 2014, the agency has deployed $16.9 million over 100 transactions, translating to 62 million metric tons of CO2 avoided, 500+ jobs created, and $725 million in leveraged capital. MassCEC’s BRIDGES Program — developed to counter investor pullback during the pandemic — brought together key partners to leverage $1.1 million, which encouraged other investors to commit a further $9.4 million. The result was 100% successful outcomes for eight startups through acquisitions and further rounds of funding.