Los Angeles, California, has rapidly transformed into a global hub for clean technology (cleantech) and climate tech innovation. The city’s unique blend of deep scientific talent, robust venture capital (VC) presence, and a collaborative culture spanning tech, media, and entertainment industries has propelled it to the forefront of decarbonization and sustainable growth. International investors, family offices, and entrepreneurs seeking market entry or partnership opportunities will find LA’s climate tech scene both dynamic and deeply resourced. For deeper sector insights and strategic advisory, refer to the Damalion blog, which covers U.S. venture trends and ecosystem developments for global stakeholders.
With over 8,000 startups, 120 VC firms managing $9.1 billion, and world-leading accelerators like the Los Angeles Cleantech Incubator (LACI), LA is not only fueling homegrown innovation but attracting international capital and talent. Notably, 2023 saw $18.7 billion in VC investment in LA tech startups, with climate tech commanding a remarkable 32% share—nearly $6 billion—up from 18% in 2021. This surge aligns with broadening ESG mandates and global climate goals, making Los Angeles a strategic destination for investors and founders alike. (For those interested in the intersection of AI and healthcare, see the Damalion feature on 10 Los Angeles Generative AI Healthcare and Technology Startups to follow in 2025.)
LA’s Climate Tech Ecosystem: Funding, Scale, and Institutional Support
The Los Angeles cleantech ecosystem is underpinned by strong institutional support, public-private partnerships, and a focus on commercializing breakthrough technologies. The Los Angeles Cleantech Incubator (LACI) exemplifies this approach, supporting over 500 portfolio companies that have collectively raised $1 billion in funding and generated $344 million in revenue. LACI’s impact extends beyond capital, with its companies contributing $733 million in long-term economic value and catalyzing job creation across the region.
Recent philanthropic and strategic investments underscore this momentum. In February 2025, LACI secured a $500,000 Rockefeller grant for its City Climate Innovation Challenge, targeting zero-emission delivery solutions such as EV charging, e-cargo bikes, and parcel lockers. In August 2025, the Schmidt Family Foundation contributed $2 million to expand LACI’s Cleantech Debt Fund, increasing revolving lending capital to $7.6 million—funds now deployed to more than 20 companies across grid resiliency, EV charging, and metallurgy sectors. This layered funding support, combined with active participation from global investors such as Google, Microsoft, and Japan Airlines Innovation Fund, positions LA as a launchpad for high-impact cleantech ventures.
Key Startups Powering LA’s Clean Technology Revolution
Los Angeles is home to several standout climate tech startups that exemplify the region’s innovation ethos and commercial ambition. Below are three leading companies attracting significant capital and industry attention:
- Captura (Pasadena): Co-founded by Caltech scientists CX Xiang (CTO) and Harry Atwater (CSO), with CEO Steve Oldham, Captura is pioneering Direct Ocean Capture (DOC) technology to extract CO₂ from ocean water. The company’s solution is scalable, uses no added chemicals, and enables either sequestration or conversion into low-carbon fuel. As of April 2024, Captura’s Series A funding reached US$45.3 million, backed by National Grid Partners, Japan Airlines Innovation Fund, and Future Planet Capital. With two pilot plants in California and a third planned for Norway in late 2024, Captura is driving the next wave of scalable carbon removal solutions.
- Exowatt (Southern California): Exowatt develops advanced thermal energy storage solutions designed to balance power demand, especially for high-intensity applications like AI compute. In April 2025, Exowatt closed a $70 million Series A round ($35 million equity, $35 million debt), bringing total funding to $90 million. Notable investors include Felicis Ventures, HSBC Innovation Banking, Leonardo DiCaprio, and Climate Capital. Exowatt’s “P3” product, unveiled at Anaheim’s RE+ expo in 2024, has an order backlog exceeding 85 GWh, signaling robust demand for grid-flexible storage technologies.
- Envoy (Culver City): Founded by Ori Sagie and Aric Ohana, Envoy brings “mobility as an amenity” to apartments, offices, and hotels by deploying shared electric vehicles (EVs) and dedicated charging stations. Backed by a Series A equity round of $11 million from Shell Ventures and Building Ventures, plus $81 million in debt/asset financing from Macquarie Specialized, Envoy has deployed 200 vehicles and claims each shared EV removes up to 10 traditional cars from the road. The company illustrates LA’s leadership in clean mobility and community-oriented ESG solutions.
Investment Trends: From Climate Capital to Corporate VCs
The LA climate tech market is buoyed by an increasingly sophisticated investor base. In 2023, corporate VC participation in LA tech reached $3.5 billion, with major tech and industrial players seeking exposure to clean energy, green hydrogen, and carbon capture technologies. Average deal size in the region was $3.2 million, while the median Series A round (2020–2024) was $10 million—testament to the scale and ambition of LA startups. Notably, climate tech’s share of total LA tech funding jumped from 18% in 2021 to 32% in 2023, a signal of shifting priorities among both generalist and thematic investors.
International interest is further demonstrated by cross-border investments, such as the Japan Airlines Innovation Fund’s stake in Captura. For a deeper dive into the region’s venture capital landscape, including top firms backing climate innovation, see Damalion’s guide to The Top 50 venture capital (VC) firms in Los Angeles to boost your startup!
Why Los Angeles? Ecosystem Strengths and Global Opportunity
What makes Los Angeles a magnet for cleantech founders and international investors? The answers lie in its unique convergence of research institutions, policy leadership, and market-ready infrastructure. Caltech, UCLA, and USC produce breakthrough climate science, while local agencies and the City of LA are early adopters of zero-emission fleets, renewable energy mandates, and ESG programs. The city’s proximity to ports, logistics hubs, and the world’s largest EV market further accelerates the commercialization and scaling of new technologies.
For international founders and investors, LA offers not only access to capital but also a robust support system for U.S. market entry, including tax incentives under the Inflation Reduction Act (IRA), guidance on ESG frameworks, and plug-and-play networks for pilot deployments. As the global race to net zero intensifies, Los Angeles stands out as a launchpad for scalable solutions with global relevance.
Damalion supports international startups (from pre-seed, seed, series, A, B, C, growth stage and mid-caps) entering the U.S. market with corporate structuring, fundraise, customer development expertise, regulatory compliance, and operational guidance tailored to the needs of growing companies. We also advise international investors, family offices navigating the U.S. startup ecosystem and real estates with deal sourcing and strategic advisory.
