MassCEC / Investments / Funding / 2030 Fund

The Challenge: Grow Massachusetts-Based Climate Technology Companies

Early-stage climatetech start-ups face funding gaps that threaten their path to market. Access to capital is limited by both funding availability and high technological risk.

About the 2030 Fund

The $50M 2030 Fund is a signal to the market that Massachusetts is committed to the commercialization of climate technologies. MassCEC invests impactfully and countercyclically in Massachusetts’ most promising climate technology innovators. Our investments support climatetech companies as they de-risk their technology, reach early commercial milestones, and attract private funding for growth.

Climatetech encompasses a wide range of tech solutions across sectors that further mitigation, adaptation, and resilience. Portfolio companies work to reduce greenhouse gas emissions, prepare for and respond to the impacts of climate change, and/or serve as enabling solutions to achieve the Commonwealth’s climate goals. We invest across seven major sectors: energy; industry and manufacturing; transportation; buildings; agriculture, food and nature; carbon management; and adaptation and resilience.

The 2030 Fund invests in a variety of financial instruments, including SAFEs, convertible notes, equity, and venture debt. Investments typically range from $100k-$600k per check and may total $1.5M cumulatively. MassCEC is able to provide more patient capital than a typical private investor. Deploying strategic state capital, with no artificial pressures of fund lifetimes, the 2030 Fund can invest counter-cyclically, back founders through challenging market conditions, and work for successful long-term exits. We collaborate on round syndication with a wide range of co-investors spanning venture capital firms, corporate strategic investors, and angel groups, and work closely with our portfolio companies to plan and execute successful follow-on financings.

As a public agency deeply involved in the climatetech ecosystem, we offer a variety of unique resources to our portfolio of companies beyond financial support through MassCEC’s other programs, such as grants and workforce development. MassCEC’s portfolio companies also have a dedicated Business Development team to help grow the business in Massachusetts and beyond with connections to other agencies or private businesses in the Commonwealth.

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We're excited that you're learning about one of our programs! Please also use Massachusetts' Business Front Door service, which suggests additional state resources every step of the way as your company grows.

Investment Process

MassCEC considers new investments on a rolling basis. The timeline from pitch to close of investment is typically three to five months.

Step 1: Submit your pitch deck to our team for review.

Step 2: If selected, the Investments team will reach out to schedule an initial team pitch.

Step 3: If MassCEC determines that your company is a potential fit for an investment, staff will request and review due diligence materials as part of an iterative diligence process.

Step 4: Pending a positive diligence outcome, pitch to MassCEC's CEO and other executive-level staff.

Step 5: Negotiate deal terms and begin initial legal documentation.

Step 6: Final approval

Step 7: Complete legal documentation and close deal.

Who's Eligible

Eligible applicants are Massachusetts-based companies whose products or services are consistent with the goal of mitigating climate change and/or helping communities adapt and build resilience to the impact of climate change.

In addition, The Fund typically requires that at least three of the following four business functions are located within the Commonwealth of Massachusetts:

The company’s worldwide corporate headquarters (primary executives must be in Massachusetts)
The company’s primary research and development center
The company’s primary manufacturing operations
The company’s primary sales and marketing operations

If uncertain whether the company is eligible for investment, please submit an application for review and MassCEC staff will be happy to review and consider it for investment.

Companies are encouraged to apply to MassCEC’s  Additional Funding Opportunities.

Frequently Asked Questions

What is the typical size of a MassCEC investment?

The typical MassCEC investment ranges from $100,000 to $600,000. MassCEC also may participate in follow-on investments, for a cumulative total of $1.5M. Our financial support is designed to decrease over time as later-stage investors become active in supporting a company.

What is the typical size of a MassCEC venture debt investment?

MassCEC's venture debt investments can be anywhere from $100,000 to $1,000,000.

How does MassCEC compare to a typical private investor?

As an industry-specific publicly-funded investor focused solely on cleantech/climatetech, MassCEC acts as a strategic, value-add investor. We seek to be actively involved in our portfolio companies through board or board observer roles in order to bring as much value to the company as possible. As a public agency deeply involved in the cleantech ecosystem, we can also offer a variety of resources to our portfolio companies beyond financial support by leveraging MassCEC’s other various programs and contacts.

Contrary to most traditional investors, MassCEC’s role as a public investor is particularly prominent in the early stages of a company’s development, and tends to lessen over time as the private sector increases its involvement in the company.

MassCEC makes its investments alongside other private investors, so we invest on standard commercial terms and seek to make a financial return with our investments. However, financial return is only one of several goals, and MassCEC seeks to optimize overall impact with its investments. Some examples of this impact include advancement of technology, job creation and long-term cost reduction to the ratepayer.

Finally, due to its funding structure, MassCEC can provide more “patient capital” than a typical investor. While we always seek investments with exit opportunities, we do not have stringent timelines for those exits.

What does the “significant Massachusetts presence” requirement mean?

Your company must have a majority of the following offices based in Massachusetts (as applicable) in order to have a “significant Massachusetts presence”: