Tough Tech Landscape: Data Provided by

2021
Tough Tech Landscape

Data provided by
CONTENTS
Foreword
Deals & Exits
3
4 Foreword
Tough Tech by the numbers 8 olutions to our greatest investment community—and beyond—are
S
challenges often emerge all experiencing similar levels of enthusiasm
Q&A 10 from those operating on from founders and partners.
the edge of what’s possible.
Climate Change 12 In academia and research
institutions across the
So, where to next?
Human Health 14 globe, innovators are harnessing their

talent, developing technologies that can
We must continue to nurture those at the
cutting edge of scientific and technical
help mitigate and even reverse Climate research by giving them the opportunity to
Advanced Systems & Infrastructure 16 Change, empower Human Health, and explore entrepreneurship and the potential of
create the next generation of Advanced their breakthroughs. Our Blueprint program
3D printing 20 Systems & Infrastructure. Just a decade
ago, these teams struggled to find venture
is one such effort. It’s designed to give the
next generation of Tough Tech leaders the
Advanced manufacturing 22 investors willing to support the necessary

technological development before their
tools to navigate the commercialization
process through hands-on tailored
breakthroughs could reach commercial programming. We just completed our third
Advanced & quantum computing 24 viability—but something’s changed. cohort and will launch the program again in
spring 2022 for those who aspire to be Tough
Agtech & foodtech 26 As we showcase in this report, venture
investment in Tough Tech has never been
Tech entrepreneurs.
stronger. Since our last report, only two There is always more to be done—more
AI & ML 28 years ago, both the size and number of programming support, greater investment,
checkes and VCs backing Tough Tech and more education about the possibilities
Built environment 30 companies has increased across all sectors.
2020 alone saw nearly $76.8 billion invested
of emerging technologies. As I wrote in the
foreword to our impact report published
Cleantech 32 into Tough Tech. Capital commitments

from corporate VCs, later-stage institutional
this past spring, the past two years have
been defined by a pandemic that has only
investors, and acquisitions through vehicles sharpened our collective sense of urgency
Life sciences 34 like SPACs have all increased as well, with
no signs of a slowdown. If we hope to leave
to discover and commercialize Tough Tech
companies. These years serve as a reminder
Materials 36 the planet a healthier, more resilient place
for future generations, this is absolutely
of why we must continue to create the
frameworks to support those who are solving
necessary. massive problems through the convergence
Medtech 38 of science, engineering and leadership.
The positive trends quantified in the
Mobility 40 following pages are also supported by
qualitative observations. At The Engine,
Nanotechnology 42 we are seeing exceptional individuals make

the jump to Tough Tech entrepreneurship
Katie Rae
CEO & Managing Partner
and, simultaneously, growing interest from The Engine
Robotics & drones 44 a broader array of stakeholders, including
corporate partners, government officials,
Semiconductors 46 and other partners across the capital stack.
We are not alone in witnessing this positive
momentum; friends throughout the Boston
Spacetech 48
Methodology 50
2021 Tough Tech Landscape | 3 |
Deals
ver the past decade, released by the United Nations’ the globe to prioritize domestic Tough Tech VC deals (#) by stage Tough Tech VC deals ($M) by stage
O
venture financing Intergovernmental Panel on Climate manufacturing initiatives.
into Tough Tech has Change (IPCC), stressed the urgent 6,000 $90
surged. In 2020, $76.7 need to develop and deploy low- Venture firms, corporate investors,
$80
billion was invested emissions technologies—particularly sovereign wealth funds, and family 5,000
across nearly 5,000 in the power, transportation, and offices were even more active in $70
transactions. In the first 8 months industrial sectors. The COVID Tough Tech. Such a profusion of
4,000 $60
of 2021 alone, nearly $78 billion pandemic highlighted the importance capital into Tough Tech has required
has already been invested across of resilience in product development strict due diligence and greater $50
close to 4,000 completed financings through the commercial supply investor understanding regarding 3,000
$40
worldwide. To increase granularity chains of vaccines, diagnostics, and the complexity and timeline of the
across the diverse set of fields in Tough therapeutics. This same resilience is in products and services faced by Tough 2,000 $30
Tech, we are grouping deals into three our our food systems. Simultaneously, Tech companies. Nonetheless, the
$20
categories: Climate Change, Human the pandemic-driven lockdowns venture capital investment remains 1,000
Health, and Advanced Systems & resulted in more people working unabated. Looking ahead, venture $10
Infrastructure. Each of these segments from home, which led many to realize capital investment into Tough Tech is
reached record highs for investment. the importance of communication expected to proceed at a record pace, 0 $0
technologies and computing systems as investors seek to support the next 2016 2017 2018 2019 2020 2021* 2016 2017 2018 2019 2020 2021*
Recent events representative of as critical infrastructure. Further, generation of technologies addressing Angel & seed Early-stage VC Late-stage VC Angel & seed Early-stage VC Late-stage VC
long-term and urgent challenges the semiconductor shortage and global challenges.
have driven this recent flood of COVID-19-related supply chain
Source: PitchBook Source: PitchBook
funding. The 2021 assessment report, delays caused governments around *As of August 31, 2021 *As of August 31, 2021
Tough Tech VC activity by segment Tough Tech median VC deal size ($M) by stage Tough Tech median VC pre-money valuation ($M)
by stage
$16 $90
$100 6,000
$90 $80
$14
5,000
$80 $70
$12
$70 $60
4,000
$60 $10
$50
$50 3,000 $8
$40
$40
2,000 $6
$30 $30
$20 $4 $20
1,000
$10 $2 $10
$0 0
$0 $0
2016 2017 2018 2019 2020 2021*
2016 2017 2018 2019 2020 2021* 2016 2017 2018 2019 2020 2021*
Climate Change Human Health Advanced Systems & Infrastructure Total deal count Angel & seed Early-stage VC Angel & seed Early-stage VC
Source: PitchBook
*As of August 31, 2021
Late-stage VC Late-stage VC

*As of August 31, 2021 *As of August 31, 2021
| 4 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 5 |

Exits
Global VC Exit Activity by Tough Tech Bucket ($B)
$100 350
300
$80
250
$60 200
$40 150
100
ver the past four years, centage of this cohort do not yet offer production, since transitioning from a $20
50
O
Tough Tech has expe- any commercial products. startup to an automotive original equip-
rienced two dramatic ment manufacturer (OEM) or a Tier $0 0
surges in growth, with This scale of funding is not unique to 1 Li-ion battery cell manufacturer, re- 2016 2017 2018 2019 2020 2021*
both the number of SPAC targets—as venture capital funds quires billions of dollars in investment.
exits and exit valuations. have grown over the years, so too have Climate Change Human Health Advanced Systems & Infrastructure Total exit count
The first occurred in 2018, when exit the number of venture-funded uni- The surge of capital into the cleantech Source: PitchBook
activity increased by more than 200% corns, or startups with billion-dollar and electric mobility exits demonstrates *As of August 31, 2021
and exit count increased by 39%, valuations. Therefore, the second key two emerging views within the institu-
compared to the year prior. The bulk of benefit of SPAC mergers is the acceler- tional investor community. First, these Global VC Exit Activity by Exit Type ($B)
this growth was for IPOs in the Human ated access to this capital, as the entire investors are now convinced the energy
Health segment, which jumped from 32 timeline of a SPAC merger, from first transition is a huge market opportu- $100 350
exits totalling $5.4 billion in 2017 to 58 touch to public listing, can take as little nity that will transform the power and
exits totalling $28.0 billion in 2018. In as six months. automotive industries, and they are 300
$80
fact, that year, biotech startups made looking to capitalize on this opportuni- 250
up half of all VC-backed IPOs. This Lastly, the third key benefit to Tough ty. Second, the technologies powering $60
wave was driven by companies develop- Tech startups is the actual process of this transition are not necessarily com- 200
ing therapeutics and gene-editing tech- going public via SPAC. In an IPO, ing from incumbents, but from Tough $40 150
nologies, including Moderna, Rubius companies must announce the IPO Tech startups looking to disrupt today’s
100
Therapeutics, and Homology Medicines. before knowing either valuation or status quo. $20
share price. The company’s true market 50
The second surge occurred in 2020. capitalization is thus unknown until it Meanwhile, the Advanced Systems & $0 0
Tough Tech exit activity increased by actually starts trading. In a SPAC trans- Infrastructure segment has also experi- 2016 2017 2018 2019 2020 2021*
more than 130% with the Climate action, the target company’s valuation enced an uptick in exit counts and val-
Change segment experiencing the larg- is part of the negotiation process, and uations. One of the most notable exits Acquisitions IPOs PIPEs & reverse mergers Total exit count
est jump (+991%). Most of this activity strong returns for existing shareholders in this space is IonQ, which became the
was concentrated in IPOs as well as in are essentially guaranteed. Additionally, first publicly traded, pure-play quantum Source: PitchBook
reverse mergers with special purpose since the SPAC continues to be pub- computing company after completing *As of August 31, 2021
acquisition companies (SPACs). licly traded in the period between the a SPAC merger on October 1, 2021.
announcement and the completion of The company received gross proceeds Global VC Exit Activity by Exit Type ($B)
A SPAC is a publicly listed shell com- the transaction, there is reduced risk of of $636 million from the transac-
pany designed specifically to acquire an unexpectedly disappointing IPO. tion. IonQ plans to use this capital to
a private company and convert it into continue its path towards building a $600
a public one. An alternative to the Between January 2020 and August multi-million qubit, fault-tolerant quan- $500
traditional IPO process, more Tough 2021, 19 Climate Change startups have tum computer.
Tech companies have chosen to go gone public via reverse mergers with $400
public via reverse mergers with SPACs SPACs. The bulk of these companies Looking ahead, Tough Tech IPOs,
for several reasons. The first is available are specifically focused on batteries, SPAC mergers, and exit valuations are $300
capital. Between January 2020 and energy storage, electric vehicles (EVs), likely to only continue to skyrocket, $200
August 2021, the 34 Tough Tech start- and EV charging. Many of these com- as the emerging markets in Climate,
ups choosing to go public via SPAC panies are still pre-revenue, and chose Human Health, and Advanced Sys- $100
received an average valuation above $1 to venture into the public markets in tems & Infrastructure begin to come to
billion, even though a significant per- order to secure fresh capital for scaling fruition. $0
2016 2017 2018 2019 20202 021*
Average Median
Source: PitchBook

Tough Tech by the numbers
VC activity in Tough Tech is Tough Tech median VC deal size ($M) by stage
setting records in 2021, even
after record sums invested last $16
year. Benefiting from multiple $14
accelerating factors, ranging from
breakthrough technical advances, $12
Tough Tech VC activity growing adoption and expansion
$10
$90 6,000 of business applications, and
$80
macroeconomic factors, such as $8
5,000 government policies and changing
$70 $6
regulations. Multiple Tough
$60 4,000 Tech segments are seeing more $4
investment than ever before.
$50 $2
3,000
$40 $0
$30 2,000 2016 2017 2018 2019 2020 2021*
Most active VC investors in
$20 Tough Tech, 2020-2021* Angel & seed Early-stage VC Late-stage VC
1,000
$10 Source: PitchBook
Deal *As of August 31, 2021
$0 0 Investor
count
2016 2017 2018 2019 2020 2021*
Deal value ($B) Deal count

SOSV 136 Tough Tech median VC pre-money valuation ($M) by stage
Source: PitchBook
*As of August 31, 2021 $90
Sequoia Capital China 98
$80
OrbiMed 94 $70
$307.6B
$60
Tough Tech VC deals (#) with corporate participation Hillhouse Capital Group 94
$50
by stage $40
Keiretsu Forum 90
Venture capital 1,400 $30
invested from 2016 1,200 RA Capital Management 89 $20
through August 2021 $10

1,000 Qiming Venture Partners 71
$0
800 2016 2017 2018 2019 2020 2021*
Casdin Capital 66
600 Angel & seed Early-stage VC Late-stage VC
Matrix Partners China 63 Source: PitchBook

400
48.7%
200 Source: PitchBook
0
Year-over-year increase 2016 2017 2018 2019 2020 2021*
in Tough Tech venture
investing from 2019 to 2020
Angel & seed Early-stage VC Late-stage VC
Source: PitchBook
$77.5B 5,800 $80.7M
Venture capital invested 2021 is currently on pace The median late-stage pre-
in 2021 through August to record nearly 5,800 money valuation in Tough
transactions Tech hits a new high

Q&A
What is The Engine? engineering, and leadership. While it technological world’s response, How is Tough Tech investment With increased scrutiny on venture Engine. We announced the close of
is often grouped with Deep Tech or has highlighted the importance of different from other early-stage capital diversity, what are some of our second fund in fall 2020, and have
The Engine is an early-stage Frontier Tech, Tough Tech differentiates supporting Tough Tech across not just technology investing? the ways The Engine is addressing invested in 9 new companies—spanning
venture firm that invests in Tough itself by centering on mission and health, but also other urgent societal diversity and inclusion within the firm, dynamic and accessible routing for
Tech companies commercializing purpose. challenges, such as climate change. The Engine’s approach focuses on as well as with investments? public transit (The Routing Company),
transformative technology that will The Engine continues to identify, fund, shepherding work from the lab and to distributed chemical production
lead to a healthier population, more Tough Tech has the potential for big and offer the infrastructure needed academia to commercial reality. Diversity has been central to The (Emvolon), to cement decarbonization
accessible and adaptive society, and a returns and global impact, through the to startups pursuing transformational Discovery is just the start. Bringing Engine’s values from the beginning, (Sublime Systems). Since its inception,
more resilient world. creation of new foundational economic changes. new science and technology to market and we are particularly proud of the The Engine has invested in 36
infrastructure and by enabling the requires a unique skillset and an makeup of our founders to date. In companies across both of our funds.
It was conceived of and created by transformation of existing industrial Although our investments are broadly entrepreneurial drive. We’ve designed the past 18 months, we have seen
MIT to address the need for sustained activities. The Engine’s Tough Tech defined as Tough Tech, each industry programming, such as our Blueprint the conversation around venture What do you look for in a founding
support for startups commercializing founders have proven breakthrough in which Tough Tech can play a role Program, to foster these skills and diversity change. This open dialogue team?
breakthrough science and engineering, science in labs and are taking the next has unique trends and economics that promote the next generation of Tough means looking more closely at the
with the potential to solve intransigent step to bring their technologies to factor into the investment thesis in that Tech entrepreneurs. representation of our portfolio, as well We look for founders with the drive and
global problems and make a material, market and impact. These companies space. We invest across three segments: as our firm, and identifying how we can passion to fulfill their mission. They
positive impact on society. Launched will improve human health and Climate Change, Human Health, and While commercializing Tough Tech, continue to do better. Today, 66.6% of must be working on groundbreaking
out of MIT in 2016, The Engine was agriculture, build resilient systems, Advanced Systems & Infrastructure. a founder has to manage risk across companies have a minority CEO and/ science or technology that has the
designed as an “innovation orchard”, enable adaptive infrastructure, and adapt four dimensions: technical, market, or founder (defined as Asian/Asian potential to solve a big global problem
where Tough Tech founders could have to—and even reverse—climate change. However, a few key underlying themes scale, and regulatory. Assessing American, Black/African American, and the opportunity to transform
access to capital, infrastructure, and exist that carry across every industry. those risks requires expertise in Latinx, American Indian, Native Pacific an industry.
a growing network of stakeholders How has your investment thesis First and foremost is finding incredible the specific technical fields, an Islander, and/or women); 44% of our
needed for them to be successful. around Tough Tech evolved given the founders to build diverse and people- understanding of intricate market companies have a female founder; and
Together, these three elements combine past few years’ developments in the oriented companies—great technical structures, and engagement with the 66.6% have a female executive or board
to create a model around which we space? founders who can traverse the difficult policy community—a combination of member. While we are incredibly proud
can build an innovation ecosystem that journey of Tough Tech and attract great knowledge that is difficult to assemble of our progress thus far, we all have
successfully translates breakthrough Our commitment to early-stage people—is key to long-term success. in the time period normally allotted more work to do.
research to impact. investment in Tough Tech companies Other essential factors are technologies for company diligence. At The Engine,
has remained unchanged. Previously, that can potentially impact society on we have worked to build a network of How has the increased pace and
What is Tough Tech? skeptics of investment in Tough a global scale and transform industry. technologists, investors, government volume of early-stage investment
Tech would point to long technology To take big swings and conquer Tough representatives, corporates, and impacted The Engine’s investment
Tough Tech is transformative development timelines and capital Tech, we dream big and understand academics that provides important strategy?
technology that solves the world’s intensity as barriers to successful the hurdles impeding progress in each feedback during our diligence process,
most difficult challenges through the returns. However, the pandemic, industry. and we work closely with our portfolio Like the rest of venture, the last year
convergence of breakthrough science, coupled with the scientific and companies as they move forward. has been an exciting time at The

Climate Change Global VC Deal Activity in Climate Change ($B)
$25 1,200
$20 1,000
n the past ten years, to decarbonize them, such as those being enable the establishment of a robust carbon
800
I
massive markets have developed by Boston Metal and Sublime market, such as carbon capture, storage, and $15
been created in renewable Systems. utilization systems. 600
power and vehicle $10
electrification, attracting Separately, in order to meet global CO2 From January 2020 through August 2021, 400
investors across the capital stack. Two of emissions targets, the production of critical more than $40 billion in venture capital $5 200
The Engine’s first investments were in minerals used in new energy technologies has flowed into ClimateTech startups—a
companies pursuing renewable energy will need to increase dramatically. These 37% increase compared to all investments $0 0
solutions, Form Energy and Commonwealth minerals include battery materials, such made in 2018 and 2019. As low-emission 2016 2017 2018 2019 2020 2021*
Fusion Systems. Both companies have made as lithium, nickel, and cobalt, as well technologies reach commercialization Deal value Deal count
dramatic strides since their inception in as rare earth metals, which are critical and create new markets, even more
Source: PitchBook
2017, commercializing multi-day energy components for magnets used in wind opportunities will arise for Tough Tech *As of August 31, 2021
storage systems and nuclear fusion power turbines and electric motors. Lilac Solutions climate entrepreneurs seeking to build more
plants, respectively. has developed an ion exchange material robust, sustainable systems.
Global VC Exit Activity in Climate Change ($B)
that enables vastly more efficient lithium
Beyond carbon-free electricity, there is a extraction to meet the rapidly growing $20 70
second category of companies looking to demand for lithium, which is required for
60
electrify applications outside of the power electrification of transportation.
$15 50
sector, such as industrial materials and
metals. There are several key megatrends Lastly, there are a wide variety of chemical 40
driving innovation and investor interest production processes that require new $10
30
in low-emission technologies for these technologies to reduce emissions and
sectors. In one regard, urbanization and bring new products to market. Hydrogen 20
$5
the growing global population are creating production is a key process within this 10
increased demand for metals and materials category; Syzygy Plasmonics is pioneering
$0 0
for the built environment, such as steel and a new type of chemical reactor driven
2016 2017 2018 2019 2020 2021*
cement. The material production processes by light to enable decentralized on-site
powering these industries require truly hydrogen generation. Other technologies Acquisitions IPOs PIPEs & reverse mergers Total exit count
innovative Tough Tech solutions in order in this category include those that will
Source: PitchBook
Average & Median Exit Valuations in Climate Change ($M)
$1,400
Climate Change Deal Activity
$1,200
$1,000
Investor Deal count Investor Deal count
$800
SOSV 47 S2G Ventures 15
$600
Breakthrough Energy Ventures 28 Keiretsu Forum 15
$400
Climate Capital 20 Y Combinator 12
$200
Lowercarbon Capital 19 The Engine 12
$0
Prelude Ventures 18 ImpactAssets 12 2016 2017 2018 2019 2020 2021*
Alumni Ventures Group 16 Average Median
*January 2020 - August 2021 *As of August 31, 2021

Human Health Global VC Deal Activity in Human Health ($B)
$50 3,000
$40 2,500
o industry has featured with advances in machine learning and data In the agtech and foodtech sectors, a clear
2,000
N
more prominently in science approaches, promise to continue trend towards sustainability and reduction $30
the public domain than to drive innovation in this space, offering of carbon footprint has materialized in the 1,500
those related to Human new and more personalized treatment and form of alternative proteins, with several $20
companies reaching multi-billion dollar 1,000
Health. The COVID-19 diagnostic modalities. Besides advances in
pandemic has cast a bright spotlight on a molecular biosciences, a new breed of Tough valuations in recent years. The proliferation $10 500
sector already fueled by long-term trends of Tech companies are being formed at the of indoor farming and technologies that
growing populations, extending lifespans, intersection of the life science and physical extend shelf life of produce is resulting in $0 0
and the ascent of age-related diseases. In or engineering domains. Companies like more resilient and sustainable supply chains. 2016 2017 2018 2019 2020 2021*
tandem, agriculture and food required Kytopen and Cellino will be foundational to Companies like Mori, has pioneered natural Deal value Deal count
to sustain the growing population, in an further development and scaling of the next protective coatings of food from fresh cut
Source: PitchBook
environmentally positive way, has created a generation of therapies. vegetables to protein to preserve freshness. *As of August 31, 2021
need for innovation that leverages some of Lastly, the field of synthetic biology is
the same advances in biosciences, as well The COVID-19 pandemic has resurfaced coming of age with companies pursuing Global VC Exit Activity in Human Health ($B)
as other technological breakthroughs in the importance of public health, infectious large-scale production of both industrial
material science, big data and robotics. disease testing, and vaccination, re-empha- and specialty chemicals, textiles, leather $80 250
sizing the work of companies like Biobot, substitutes, and other materials through use
$70
A major share of the Human Health E25Bio, and Vaxess Technologies. All of whom of genetically engineered microorganisms. 200
$60
segment relates to therapeutic ventures, continue to contribute to fighting the pan-
Given the size of the challenges ahead, $50 150
which - unlike most other segments of demic, and ensure our readiness for future
Tough Tech - benefit from a well-established outbreaks of infectious diseases. the pace of discovery, innovation, and the $40
innovation ecosystem, built on decades of convergence of biological sciences and $30 100
progress in molecular biosciences More Despite the tremendous advances in other domains, ranging from engineering to $20
machine learning and big data, we expect 50
recent examples of such innovations treatment and diagnostics over the last $10
include CRISPR-based genome editing few years, significant challenges remain. the strong growth in this sector to continue.
$0 0
technologies, cell-based therapies, mRNA Autoimmune or neurodegenerative diseases
2016 2017 20182 019 2020 2021*
therapeutics, and vaccines. The growth and and certain types of cancer will likely
accessibility of high-throughput methods, require new, bold approaches like those Acquisitions IPOs PIPEs & reverse mergers Total exit count
such as sequencing or proteomics, coupled pioneered by Lucy Therapeutics.
Source: PitchBook
Average & Median Exit Valuations in Human Health ($M)
$600
Human Health Deal Activity
$500
Investor Deal count Investor Deal count $400
OrbiMed 94 Alexandria Venture Investments 56 $300

RA Capital Management 89 GV 49 $200
SOSV 68 Logos Capital 44
$100
Casdin Capital 65 Perceptive Advisors 41
$0
Keiretsu Forum 61 Khosla Ventures 41 2016 2017 2018 2019 2020 2021*
Cormorant Asset Management 58 Foresite Capital Management 41 Average Median

Advanced Systems & Infrastructure Global VC Deal Activity in Advanced Systems & Infrastructure ($B)
$25 1,600
1,400
$20
020 was a pivotal year underlying megatrends. costs have driven demand for flexible living 1,200
2
for Tough Tech startups situations, leading most venture capital $15 1,000
in Advanced Systems & First, the global demand for data investment to concentrate in modular 800
Infrastructure. COVID-19 processing is exponentially increasing, as and 3D-printed buildings. These have $10 600
lockdowns forced many to more industries pursue computationally- lower build costs and materials waste,
400
abandon their daily commutes, work from intensive systems, such as artificial smaller environmental impact, and shorter $5
200
home, and communication technologies and intelligence, sensors, and edge computing. project timelines compared to incumbent
computing systems became more commonly Simultaneously, companies are not simply systems. WoHo is one of these, enabling $0 0
a new way to build high-rise buildings 2016 2017 2018 2019 2020 2021*
accepted as critical infrastructure. At the asking for more data processing, but they
same time, the semiconductor shortage and are also demanding faster, higher quality, with unprecedented quality, precision and Deal value Deal count
COVID-related supply chain delays caused and more efficient solutions to enable efficiency.
Source: PitchBook
U.S. government agencies and the Biden new products and industries, such as *As of August 31, 2021
Administration to prioritize domestic manu- autonomous vehicles. This demand for Lastly, all commercial and industrial
facturing initiatives with renewed urgency. faster, better data processing has grown to manufacturing processes leverage a Global VC Exit Activity in Advanced Systems & Infrastructure ($B)
rates that dramatically outpace Moore’s wide multitude of technologies. They
These recent events played an undeniable Law, thereby driving Tough Tech startups require thousands of process steps, as $10 70
role in 2021’s rapid increase in Advanced like Hyperlight, Zapata Computing, and well as incredible precision, all of which
60
Systems & Infrastructure venture capital Analytical Space to pursue innovations in create opportunities for intellectual $8
deal activity. At $20 billion invested in semiconductors, quantum computing, and property development. Additionally, the 50
the first eight months of this year, venture spacetech, respectively. manufacturing requirements and limitations $6 40
investment is already 45% higher in 2021 define the final design. Therefore, a
$4 30
than 2020. Deal sizes and pre-money Second, novel manufacturing processes, domestic U.S. manufacturing industry helps
valuations have similarly skyrocketed. This like 3D printing and industrial automation reduce the technology-to-market barrier for 20
platforms, will enable more efficient, academic research on process technologies $2
increase in venture activity is expected to 10
continue through the remainder of 2021 sustainable solutions to global issues. One and new product designs, and thus creates a
$0 0
and beyond, well after governments lift key sector within this grouping is the built positive feedback loop for continued Tough
2016 2017 2018 2019 2020 2021*
COVID-19 restrictions, due to several environment. Prohibitive coastal housing Tech research and innovation.
Acquisitions IPOs PIPEs & reverse mergers Total exit count
Source: PitchBook
Average & Median Exit Valuations in Advanced Systems & Infrastructure ($M)
$600
Advanced Systems & Infrastucture Deal Activity
$500
Investor Deal count Investor Deal count $400
SOSV 39 Plug and Play Tech Center 16 $300
Alumni Ventures Group 27 Khosla Ventures 16 $200

Keiretsu Forum 24 Tiger Global Management 15
$100
Y Combinator 20 Intel Capital 15
$0
Gaingels 18 The Engine 14 2016 2017 2018 20192 0202 021*
Average Median

3D printing
Company Highlights
D printing is expanding widened for well-funded, mature
3
into multiple industries, businesses within the segment.
Carbon is a 3D printing technology Formlabs is a manufacturer of 3D Desktop Metal is a manufacturer of
Key takeaways while adopting an
company pioneering a process called printing solutions including the Form 3D printing solutions with applications
ever-growing list of Beyond metal printing in Carbon Digital Light Synthesis™. 3, Form 3B, Form 3L, and Form that range from rapid prototyping to
printing materials. The manufacturing, the 3D-printing sector Carbon DLS is a resin-based 3D 3BL powered by an advanced form of mass production. Its machines can
• The 3D-printing sector
leading areas—metal is expanding into other verticals. In printing process that uses digital light stereolithography (SLA) called Low print in various metal alloys as well as
nears $1 billion in annual and polymer printing—have moved far construction, companies including projection, oxygen-permeable optics, Force Stereolithography (LFS)™ 3D carbon fiber.
VC funding.With three beyond prototyping and small-batch ICON Technology and Mighty Buildings and engineering-grade materials to printing, Form Wash and Form Cure
produce polymeric parts with exceptional post-processing solutions, Fuse 1 SLS 3D
months left in the year, production as companies improved are aiming to build 3D-printed, cost- mechanical properties, resolution, and printer, and Form Cell manufacturing
new highs in both deal material throughput and performance. effective homes for communities in surface finish. solution. Formlabs also develops its own
Greater integration between hardware developed and developing countries. In suite of high-performance materials.
value and volume could be
and software has enabled better healthcare, 3D printing for personalized
attained. simulation of physical processes such dental aligners is already offered at
Founded 2013 | Georgia, United States Founded 2011 | MA, United States Founded 2015 | MA, United States
as furnace firing and improved real- scale, with other companies focusing
Privately held Privately held Publicly traded
• Standout companies that world performance by compensating on 3D-printed joint replacements,
for variability in forces upon materials. among other areas. Lastly, 3D printing Total Capital Raised: $682M Total Capital Raised: $253M Total Capital Raised: $732M
recently raised include
Leading these advancements, venture- is gaining footing in foodtech, as
Formlabs, which closed
backed metal printing companies companies such as Redefine Meat
$150.0 million in funding have grown especially prominent, with are trying to produce better meat
in May 2021, and two Massachusetts-based companies, replacements.
3D printing VC deals*
NewMed Medical, which Desktop Metal and Markforged,
raked in $100.0 million in completing SPAC mergers with initial Looking ahead, key areas of
valuations at $2.5 billion and $2.1 development for 3D-printing Company name Segment Deal details Close date Founded Headquarters
March 2021.
billion, respectively. As materials companies will continue to include Massachusetts, United
Formlabs General & Other $150M Series E May 19, 2021 2011
testing advances, complex geometries throughput and material performance— States
across prints will enable more parts for both areas of ongoing innovation—but Shanghai,
niche uses. Coupled with expanded also demonstration of cost efficiency NewMed Medical Healthcare & Biotech $100M Series C March 25, 2021 2015
China
distribution networks and customer for new applications spanning meat Massachusetts, United
bases, market opportunities have alternatives and construction. VulcanForms Metal $69M Series B May 15, 2020 2015
States
3D printing VC deal activity Nexa3D General & Other $55M Series C May 17, 2021 2016
California,
United States
$1.2 140
New York,
Candid Care Healthcare & Biotech $54M Series C December 03, 2020 2017
United States
$1.0 120
Nanjing,
Triastek Healthcare & Biotech $51M Series B June 16, 2021 2015
100 China
$0.8
California,
80 Arris Composites General & Other $48M Series B March 05, 2020 2017
United States
$0.6
New York,
60 nTopology General & Other $42M Series C September 29, 2020 2015
United States
$0.4
40 California,
Seurat Metal $41M Series B June 22, 2021 2015
United States
$0.2 20 California,
Velo3D Metal $40M Series D June 15, 2020 2014
United States
$0.0 0 California,
2016 2017 2018 2019 2020 2021* Mighty Buildings Construction $40M Series B February 09, 2021 2017
United States
Healthcare & biotech deal value ($B) General & other deal value ($B) Metal deal value ($B) Singapore,
Zenyum Healthcare & Biotech $40M Series B May 31, 2021 2018
Singapore
Construction deal value ($B) Deal count
Source: PitchBook
*As of August 31, 2021 Source: PitchBook
*January 2020 - August 2021

Advanced & quantum
Company Highlights
computing PsiQuantum is developing a general-

purpose silicon photonic computer
Beyond Identity builds a passwordless
authentication platform that collects
designed to facilitate quantum dozens of user and device risk signals
uantum computing applications as the segment moves computing operations. during each login – enabling customers
Q
has long been a key toward broader commercialization— to enforce continuous, risk-based
research area within especially with improving error- access control. Its architecture replaces
Key takeaways passwords with the proven asymmetric
academic labs, but as correction rates by introduction of
cryptography that underpins TLS
researchers have made additional qubits and other techniques and protects trillions of dollars in
• Advanced and quantum steady advances in the such as ion traps. transactions daily.
computing has enjoyed technology, investor interest has picked
an uptick in investor up. Global venture funding alone has Meanwhile, other advanced
interest, with close to $730 eclipsed $700 million since 2020’s start, computing companies include startups
Founded 2016 | California, United States Founded 2020 | New York, United States
million invested across 81 with the bulk concentrated in pure developing postquantum cryptography
Privately held Privately held
play quantum computing companies. technologies, such as lattice-based
financings since the start of Often those looking to develop on-site cryptography, hash-based schemes, Total Capital Raised: $745M Total Capital Raised: $105M
2020. quantum computational systems to multivariate cryptography, and
enhance companies’ capabilities. The quantum key distribution (QKD).
• Commercial applications impact of quantum computing in the These technologies will eventually
of quantum computing medium and long term can hardly be become required for classical
Advanced & quantum computing VC deals*
overstated, with analysts projecting computers, as current encryption
remain concentrated in $450 billion to $850 billion of value methods are fallible in a quantum
data processing, but new creation in the next 15 to 30 years. Key computing paradigm. Looking Company name Segment Deal details Close date Founded Headquarters
developments continue to applications will include simulation ahead, the key development goals California,
PsiQuantum Quantum Computing $450M Series D July 27, 2021 2016
draw investor interest. of complex ecosystems—from drug for quantum computing companies United States
discovery to fluid dynamics to securities are the continued expansion of qubit California,
pricing. More companies will likely capacity and improvements in signal PsiQuantum Quantum Computing $229M Series C April 06, 2020 2016
United States
launch in coming years to tackle those noise reduction. Toronto,
Xanadu Quantum Computing $100M Series B May 25, 2021 2016
Canada
Advanced & quantum computing VC deal activity Rigetti Quantum Computing $79M Series C August 04, 2020 2013
California,
United States
$0.8 60 New York,
Beyond Identity Advanced Computing $75M Series B December 08, 2020 2020
United States
$0.7
50 Maryland,
IonQ Quantum Computing $62M Series C June 16, 2020 2015
$0.6 United States
40 Cambridge Quantum Cambridge,
$0.5 Quantum Computing $52M Series D December 09, 2020 2014
Computing United Kingdom
$0.4 30 Massachusetts,
Zapata Computing Quantum Computing $38M Series B November 19, 2020 2017
United States
$0.3
20 Paris,
Pasqal Quantum Computing $30M Series A June 08, 2021 2019
$0.2 France
10 New York,
$0.1 Beyond Identity Advanced Computing $30M Series A April 08, 2020 2020
United States
$0.0 0 Maryland,
Quantum Xchange Quantum Computing $23M Series A January 07, 2021 2016
2016 2017 2018 2019 2020 2021* United States
California,
Quantum computing deal value ($B) Advanced computing deal value ($B) Deal count QC Ware Quantum Computing $21M Series B July 27, 2021 2014
United States
Source: PitchBook

Advanced manufacturing
Company Highlights
ownwind of 3D commodities such as cement and
D
printing, new materials, steel in a carbon-neutral way, while
Bright Machines uses artificial Solugen creates plant-derived
Key takeaways and robotics, advanced remaining cost competitive with the
intelligence, machine learning, and substitutes of petroleum-based
manufacturing unites incumbent methods. Such development production data to develop robots that products using enzymatic technology
key technical advances has brightened the outlook for investors are sensor-rich, have computer vision, to transform plant sugars. The
• Advanced manufacturing
in all of these segments and founders within the space and and are adaptable, enabling clients to company’s BioForge manufacturing
has notched its most lucrative to blend traditional manufacturing improved the potential for liquidity have improved yields at lower costs. platform is currently operating at a
year yet, with nearly $3 methods while pioneering new avenues. However, implementation 10,000 ton per year capacity.
billion in aggregate VC applications at scale. VCs have taken remains challenging given the need
invested in 2021 through note, completing just shy of 500 rounds to overhaul extant processes and
in 2020 for a combined $2.8 billion and integrate older equipment and facilities
August 31.
already investing almost $3 billion thus with newer technologies. Although
far in 2021 across nearly 400 completed increasing cybersecurity concerns
Founded 2018 | California, United States 2016 | Texas, United States
• Key areas of innovation transactions. Increasingly successful and the ability to remotely conduct
Publicly traded Privately held
include increasing application liquidity outcomes have underlined workflows were underscored during
that rate of investment, with close to 50 the pandemic, bringing forward spend Total Capital Raised: $434M Total Capital Raised: $440M
of novel materials to
completed exits in the past 20 months on tech stacks and especially capital
improve capabilities,
for well over $6 billion in value. expenditure (CapEx) remains a hurdle.
while reducing costs and Often dubbed Industry 4.0, the shift to As a result, VC-backed advanced
emissions; expanding automation and technical innovation manufacturers are showcasing their
3D-printing capabilities, across manufacturing processes— cost-saving, interoperable solutions,
including simulation with especially as governments reshore which will continue to aid adoption
critical capabilities after the COVID- going forward.
advanced software systems;
19-induced supply chain shocks—
and further investment remains a policy priority. In addition,
into biofabrication. new companies are increasingly re- Advanced manufacturing VC deals*
imagining manufacturing of traditional
Company name Segment Deal details Close date Founded Headquarters
Massachusetts,
Formlabs 3D Printing $150M Series E May 19, 2021 2011
United States
Advanced manufacturing VC deal activity
RWDC Industries Materials and Chemicals $133M Series B May 05, 2020 2015 Singapore
$3.5 600
Nebraska,
Monolith Materials Materials and Chemicals $120M Series C June 17, 2021 2012
United States
$3.0 500
Stockholm,
H2 Green Steel Robotics and Automation $105M Series A April 26, 2021 2020
$2.5 Sweden
400
California,
$2.0 Flexiv Robotics and Automation $100M Series B December 30, 2020 2016
United States
300
Shanghai,
$1.5 NewMed Medical 3D Printing $100M Series C March 25, 2021 2015
China
200
$1.0 Ohio,
Path Robotics Robotics and Automation $100M Series C July 20, 2021 2014
United States
$0.5 100
PureCycle Florida,
Materials and Chemicals $76M Series C November 25, 2020 2015
Technologies United States
$0.0 0
Massachusetts,
2016 2017 2018 2019 2020 2021* Manus Bio Materials and Chemicals $75M Series B November 06, 2020 2011
United States
Materials & chemicals deal value ($B) Robotics & automation deal value ($B) Massachusetts,
VulcanForms 3D Printing $69M Series B May 15, 2020 2015
3D printing deal value ($B) Deal count United States
Source: PitchBook

Agtech & foodtech
Company Highlights
etween 2019 and through new production methods
B
2020, the agtech & or alternative approaches, such as
Pivot Bio creates microbial nitrogen Impossible Foods makes alternative
Key takeaways foodtech segment saw microbe-based fertilizers. Meanwhile,
fertilizers intended to replace synthetic protein products like the Impossible
a spectacular year-over- other agtech companies are developing nitrogen fertilizer. These fertilizers help Burger from plants. To achieve similar
year jump in aggregate inputs into incumbency chains, such as farmers grow crops that can capture and taste profiles to meat, the company
• The agtech & foodtech
VC invested, surging seed coatings, produce coatings, indoor metabolize nitrogen from the atmosphere, simulates animal-based heme from the
segment has experienced from $2.2 billion to $6.1 billion. That farming for localized food production reducing the need for petrochemical leghemoglobin molecule found naturally
a record surge of venture tally may be matched in 2021, which and distribution, and more. fertilizers and the cost of farming, in the roots of soy plants.
improving health, and creating a cleaner
funding between January has seen 359 completed transactions at future.
2020 and August 2021, $4.6 billion in aggregate value through Given incumbents’ competition, many
the end of August. Venture firms have agtech companies will fold into existing
with $10.7 billion invested
been active within both spaces, as local organic produce ecosystems
across nearly 800 completed demand for energy efficient alternative and focus on efficient distribution
Founded 2010 | California, United States Founded 2011 | California, United States
VC financings. proteins and novel ingredients, free and superior quality, while others
of animal products, grew throughout will provide top-quality products and
the 2010s. In the past two years, such inputs into agricultural production and Total Capital Raised: $692M Total Capital Raised: $1.5B
• Foodtech continues to
funding surged due to the commercial supply chains. Foodtech companies
be concentrated in novel
success of alternative and cultured will continue to expand production
proteins and ingredients meats companies such as Beyond Meat, and compete for category leadership
manufacturing, though Impossible Foods, and Memphis Meats. In in alternative proteins by diversifying
some companies are turn, growing awareness of the harmful product types.
developing innovative environmental and health effects of
fertilizer overuse in key farming areas
equipment and dedicated
led to pushes for organic produce and
software plays. sustainable fertilizers and pesticides Agtech & Foodtech VC deals*

Pesticides, Fertilizer, and Massachusetts,
Indigo Agriculture $535M Series F June 22, 2020 2013
Plant Engineering United States
Agtech & Foodtech VC deal activity Impossible Foods
Plant & Insect-based Food
$500M Series F March 13, 2020 2011
California,
Products United States
$7 500 Pesticides, Fertilizer, and California,
Pivot Bio $430M Series D July 19, 2021 2010
Plant Engineering United States
$6
400 Plant & Insect-based Food Evry,
Ynsect $372M Series C October 06, 2020 2011
$5 Products France
300 Plant & Insect-based Food Illinois,

$4 Nature's FYND $350M Series C July 19, 2021 2012
$3 Plant & Insect-based Food California,

200 LIVEKINDLY $335M Series B October 14, 2020 2017
$2 Plant & Insect-based Food California,
Perfect Day $300M Series C July 08, 2020 2014
100 Products United States
$1 California,
Apeel Other $275M Series D April 29, 2020 2012
United States
$0 0
Plant & Insect-based Food Santiago,
2016 2017 2018 2019 2020 2021* NotCo $235M Series D July 26, 2021 2015
Products Chile
Other deal value ($B) Pesticides, fertilizer, & plant engineering deal value ($B) Plant & Insect-based Food Massachusetts,
Motif $226M Series B June 16, 2021 2019
Plant- & insect-based food & products deal value ($B) Indoor & alt farming deal value ($B) Deal count Products United States
Source: PitchBook
Source: PitchBook

AI & ML
Company Highlights
espite the tremendous & ML technologies have significantly
D
growth in sector- advanced in the past five years, the
Databricks is an enterprise software Scale AI is building a data platform
Key takeaways specific applications computational power required to
company that specializes in a cloud data to accelerate the development of AI
of AI & ML, in areas train and operate AI & ML platforms platform based on the Apache Spark applications in LiDAR, image, video, and
ranging from retail remains expensive, and dataset quality framework. Its software is used to process NLP annotation. APIs permit machine
• $8.6 billion in VC has
and advertising to and completeness remain persistent massive quantities of data and explore learning teams at companies like OpenAI,
been invested in the AI & biotech and R&D (which are excluded issues. With proliferation of smart that data through AI models. Lyft, Pinterest, and Airbnb to focus on
ML space since the start of from this section of the Tough Tech devices and data availability, many building differentiated models versus
labeling data.
2019, including $4.5 billion report), companies that focus on companies’ target areas has also
invested in 2021 through developing broad applications have increasingly included real-time Edge
seen growth surge, with a handful of AI computation, which requires
August 31.
rounds occurring in the computer better use of resources and energy
vision, robotics, and natural language as they run on the end devices.
• Both startups and large, processing spaces. 2021 has already Addressing these issues will require
established players are seen a record amount of venture innovation in hardware systems, such
capital invested across 41 completed as semiconductors, as well as the AI & Total Capital Raised: $3.5B Total Capital Raised: $603M
pursuing key technical
transactions worldwide, with prominent ML models themselves, data collection
advances in and
companies such as Databricks and and cleaning, and training methods.
deployments of AI & OpenAI commanding multibillion- Further innovation, particularly
ML, including increased dollar sums. around model transparency, will likely
usage of AI in chip design; draw continued interest, especially as
tinyML and additional AI & ML tools are expected to commercial applications of AI & ML
continue to proliferate, as increasing are proven out.
modeling; and self-
studies showcase applications in
programming capabilities. grayer, more complex areas. While AI AI & ML VC deals*

California,
Databricks Other $1,600M Series H August 31, 2021 2013
United States
AI & ML VC deal activity Databricks Other $1,000M Series G February 01, 2021 2013
California,
United States
$5 80 Beijing,
4Paradigm Other $700M Series D January 22, 2021 2014
70 China
$4 Natural Language California,
60 Scale AI $325M Series E April 13, 2021 2016
Processing (NLP) United States
50 Massachusetts,
$3 DataRobot Other $317M Series F December 09, 2020 2012
United States
40
Massachusetts,
$2 DataRobot Other $300M Series G July 27, 2021 2012
30 United States
Beijing,
20 4Paradigm Other $230M Series C December02, 2020 2014
$1 China
10 Natural Language California,
Scale AI $154M Series D December 01, 2020 2016
Processing (NLP) United States
$0 0
Computer Vision & Beijing,
2016 2017 2018 2019 2020 2021* CloudMinds $153M Series B December 09, 2021 2015
Robotics China
Other deal value ($B) NLP deal value ($B) California,
Beyond Limits Other $133M Series C September 22, 2020 2014
Computer vision & robotics deal value ($B) Deal count United States
Source: PitchBook

Built environment
Company Highlights
till relatively nascent New materials and decarbonization
S
in its development, the of existing practices will be a focus
Halio is commercializing advanced smart- Factory OS builds mobile, weather-
Key takeaways built environment is of the sector’s growth in the coming
tinting glass designed to dynamically resistant modular homes with precision
attracting more interest decades due to the high emissions respond to changing light conditions. By cutting and indoor material storage
due to several macro associated with building components responding to changing light conditions, features that reduce construction wastes,
• The built environment has
factors. Increased embodied in a structure. Examples this glass provides shade and glare relief control energy consumption, and
completed 158 VC rounds cognizance of environmentally minded include companies looking to make in seconds. make homes smart and technologically
since 2019, with 2021 construction, the sector’s large role in regenerative products, such as wood, suitable.
already seeing well over $300 global carbon emissions, global housing more structurally sound and thus more
million invested. shortages demanding more affordable scalable, companies decarbonizing
and faster-to-market housing, and the major emissions offenders such as
impact of built environments on human cement, steel, or aluminum, or those
• Companies are benefiting health are driving factors within the looking to introduce new materials from
from upstream technical sector. As prohibitive coastal housing graphene and carbon composites or use
advances in materials costs drive up demand for flexible synthetic biology to grow materials in
living situations, most of the VC labs. Opportunities remain as players Total Capital Raised: $344M Total Capital Raised: $83M
and 3D printing, which
invested has concentrated in modular in the built environment seek to bridge
enable more efficient
and 3D-printed buildings that cut divides between the digital and physical
mass production. both the cost to build and materials realms—especially regarding integrating
wasted on site and significantly reduce seamless communications between a
• Many new companies are project timelines. The acceleration connected home and mobile devices.
pursuing innovative modular of hybrid work models is also
encouraging consumer interest in Built environment VC deals*
building designs that are
rapid, environmentally friendly housing
easier to assemble and more models that can be constructed in a Company name Segment Deal details Close date Founded Headquarters
affordable and eco-friendly. variety of geographies. Modular and 3D Printed Texas,
ICON Technology $207M Series B August 24, 2021 2017
Buildings United States
Modular and 3D Printed California,
Factory OS $60M Series B November 20, 2020 2017
Built environment VC deal activity Boston Metal Construction Materials $50M Series B January 07, 2021 2012
Massachusetts,
United States
$0.4 60
SmartLam North Montana,
Construction Materials $49M Series December 09, 2020 2012
America United States
50
$0.3 Mighty Buildings $40M Series B February 09, 2021 2017
40
Modular and 3D Printed Texas,
ICON Technology $35M Series A August 19, 2020 2017
$0.2 30
California,
Fortera Construction Materials $30M Series B June 28, 2021 2019
United States
20
$0.1 California,
Canvas Other $24M Series B April 15, 2021 2013
United States
10
Mighty Buildings $22M Series July 13, 2021 2017
$0.0 0
2016 2017 2018 2019 2020 2021* Abodu $20M Series A July 15, 2021 2018
Modular & 3D-printed buildings deal value ($B) Other deal value ($B) California,
Dusty Robotics Other $16M Series A June 11, 2021 2015
Construction materials deal value ($B) Deal count United States
Source: PitchBook

Cleantech
Company Highlights
he macro factors However, in every year since
T
supporting investor 2011, companies developing next-
Form Energy is developing a new class Li-Cycle is developing technologies to Sila Nanotechnologies enables lighter,
Key takeaways interest in cleantech generation battery and energy storage
of cost-effective, multi-day energy storage recycle lithium-ion batteries. Its current safer, higher energy density lithium-ion
companies have rarely technologies, including Solid Power and systems that will enable a reliable and platform has a recovery rate of ≥95% batteries for mass adoption of electric
been stronger or Form Energy, have attracted the bulk of fully renewable electric grid year-round. of all materials. The company is also vehicles, smarter, longer-lasting portable
• Cleantech venture funding
broader. In efforts to cleantech funding, as venture investors, Its storage systems rely on iron-air building a network of logistics partners to electronics, and broader use of renewable
has skyrocketed in 2021, reduce the negative impacts of climate automakers, and other multinational technology optimized to store electricity transport batteries to its facilities. power sources. The Sila anode has 20%
leaping to $4.5 billion, change, governments worldwide are corporations have sought to capture for 100 hours at system costs competitive more energy density than standard Li-ion
with legacy power plants. solutions, a smaller battery footprint, and
eclipsing all prior annual passing more aggressive policies to slices of the rapidly growing EV and drop-in capability.
tallies. At 300+ deals, it is electrify transportation and shift to grid storage markets. Besides energy
carbon-free electricity production; storage, increased investment has also
also on pace to set a record
earmarking billions of dollars to gone toward companies looking to
in deal count. incentivize electric vehicle purchases, provide carbon-free power generation,
Founded 2017 | MA, United States Founded 2016 | Ontario, Canada Founded 2011 | California, United States
update electric grids, and expand such as Commonwealth Fusion Systems
Privately held Publicly traded Privately held
• Since January 2020, solar plants. Large-scale corporate and Quaise, which are developing novel
engagement with cleantech companies technologies for commercial nuclear Total Capital Raised: $366M Total Capital Raised: $315M Total Capital Raised: $933M
more than 20 cleantech
has also dramatically improved over fusion power plants and geothermal
companies, including
the past two years—oil & gas majors systems, respectively. Looking ahead,
QuantumScape and Li- have been particularly supportive of more investment is expected for
Cycle, have gone public via companies developing carbon capture cheaper recycling processes to build
reverse mergers with SPACs. and hydrogen fuel technologies. a circular economy for new energy
technologies and more efficient cooling
systems to allow societies to adapt to
the changing climate.
Cleantech VC deals*

Batteries & Energy Nevada,
Redwood Materials $700M Series C July 28, 2021 2017
Storage United States
Cleantech VC deal activity Sila Batteries & Energy
$590M Series F January 07, 2021 2011
California,
Nanotechnologies Storage United States
$5 400
Batteries & Energy California,
Swell $450M Series B December 10, 2020 2014
$4 Batteries & Energy Massachusetts,
300 Form Energy $200M Series D July 22, 2021 2017
$3 Batteries & Energy California,
QuantumScape $200M Series F June 16, 2020 2010
200
SolidEnergy Batteries & Energy Massachusetts,
$2 $139M Series D April 19, 2021 2012
Systems (SES) Storage United States
100 Batteries & Energy Colorado,
Solid Power $130M Series B May 03, 2021 2011
$1 Storage United States
Nebraska,
Monolith Materials Alternative Fuels $120M Series C June 17, 2021 2012
$0 0 United States
Batteries & Energy Grenoble,
2016 2017 2018 2019 2020 2021* Verkor $119M Series B July 06, 2021 2020
Storage France
Other deal value ($B) Power generation deal value ($B) Batteries & energy storage deal value ($B) Berlin,
Enpal Power Generation $119M Series B July 08, 2021 2017
Alternative fuels deal value ($B) Deal count Germany
Source: PitchBook

Life sciences
Company Highlights
y a large margin, life Many of those trends led to the shift
B
sciences is the largest toward personalized medicine, wherein
GRAIL sses high-intensity sequencing, Moderna is a biotechnology company
Key takeaways Tough Tech sector. a patient’s characteristics determine the
population-scale clinical trials, and that produces medicines and vaccine
Well over $70 billion method and type of drugs developed for state of the art computer science and technologies made of messenger RNA.
has been invested their condition. Although production data science to enhance the scientific Its vaccine platform inserts synthetic
• The largest Tough Tech
across thousands of techniques will need to be honed to understanding of cancer biology and nucleoside-modified mRNA into
segment, life sciences, has seen rounds since the start of 2020. The efficiency, given the unique scalability develop blood tests for early-stage cancer human cells using a coating of lipid
a profusion of VC invested in bulk of funding has concentrated challenges of personalized therapies, the detection. nanoparticles. Moderna’s COVID-19
vaccine has proven to be widely effective
2020 and 2021, with close in therapeutics for both oncology advent of next-generation techniques against the novel coronavirus.
to $40 billion invested last and other diseases. Due to industry will aid that. Due to demographics,
economics and regulatory agency intellectual property expirations, higher
year and nearly $35 billion
approvals, many orphan drugs levels of income across more nations,
invested this year to date. developed for rare diseases receive and the emergence of novel diseases
Founded: 2015 | California, United States Founded 2010 | MA, United States
plenty of capital. Some diseases’ rarity as lifespan increases around the globe,
Publicly traded Publicly traded
• Key areas of development in enables more precise treatments based demand is rising. However, venture
on the characteristics of the disorder backers are seeing greater rates of Total Capital Raised: $2B Total Capital Raised: $3.9B
therapeutics include genome
or the attacking virus/bacteria. Life liquidity than ever before, with well over
editing, cell-based therapies,
sciences’ flood of capital was inevitable $60 billion alone in exit value in 2020.
immunotherapies and RNA- given the steady technological advances Thus, VCs continue to fund numerous
based methods across various over the past decade that enabled startups, with plenty of capital to
indications. speedy innovation within the sector— pursue new avenues of innovation.
from rapid simulations of therapy As the sophistication of therapies
effects via improved computing to increasingly demands expertise—thus
genomics to advanced techniques such leading to competition—industry
as CRISPR. experience will continue to be priced at Life sciences VC deals*
a premium.
Shenzhen,
MGI Tech Diagnostics $1,000M Series B May 28, 2020 2016
China
Life sciences VC deal activity California,
Resilience Therapeutics - Oncology $755M Series B October 23, 2020 2020
$45 2,000 United States
Massachusetts,
$40 EQRx Therapeutics - Other $570M Series B January 11, 2021 2019
United States
$35 1,500 Massachusetts,
ElevateBio Therapeutics - Other $525M Series C March 15, 2021 2017
$30 United States
California,
$25 Lyell Therapeutics - Oncology $493M Series C March 05, 2020 2018
United States
1,000
$20 Massachusetts,
Laronde Therapeutics - Other $440M Series B August 30, 2021 2017
$15 United States
500 Washington,
$10 Sana Biotechnology Therapeutics - Other $435M Series B June 11, 2020 2018
United States
$5 California,
insitro Therapeutics - Other $400M Series C April 07, 2021 2018
$0 0 United States
2016 2017 2018 20192 020 2021* California,

GRAIL Diagnostics $390M Series D May 06, 2020 2015
United States
Other deal value ($B) Diagnostics deal value ($B) Other therapeutics deal value ($B)
California,
RBNC Therapeutics Therapeutics - Other $340M Series A September 03, 2020 2020
Cancer & multi-area therapeutics deal value ($B) Deal count United States
Source: PitchBook

Materials
Company Highlights
etween 1995 and 2015, Given incumbency advantages, much
B
emissions from the of the business opportunities will
Redwood Materials recycles and Bolt Threads is creating performance Modern Meadow creates biofabricated
Key takeaways materials production likely plug into existing value chains,
processes scrap from battery cell fibers and fabrics using proprietary leather materials that deliver enhanced
sector increased by as strategic partners or suppliers. production and consumer electronics like breakthroughs in industrial biotechnology. material performance and sustainability
120%—making up Corporate openness to this business cell phone batteries, laptop computers, Working at the molecular level, Bolt compared to traditional materials,
• $448.2 million has already
nearly 25% of global strategy has already led to a jump in power tools, power banks, scooters, and Threads turns renewable raw materials enabling customers to get modified
invested in VC deals in output. As a result, the materials sector exits in the materials space, thereby electric bicycles. into products with properties that meet leather products without harming
2021 so far, the materials has seen a dramatic drive towards signifying potentially lucrative specific consumer needs. animals.
sector is on track to see a sustainability with the majority of opportunities for venture backers
record high in both deal venture funding in recent years going and founders alike. As governments
to companies re-imagining traditional pass ever-more-stringent emission
count and total invested
material production. policies and regulations, investment
capital. in companies developing more
Founded 2017 | NV, United States Founded 2009 | California, United States Founded 2011 | NJ, United States
Companies in the industrial materials sustainable, lower-emission products
Privately held Privately held Privately held
• Increasing emphasis on sector, such as Boston Metal and H2 and manufacturing processes is
Green Steel, are pursuing cheaper, low- expected to increase beyond 2021—a Total Capital Raised: $825M Total Capital Raised: $214M Total Capital Raised: $335M
sustainability and creating
emissions production processes for year that will likely set records in both
a circular economy is
materials including steel, cement, and deal count and total capital invested
boosting R&D across aluminum. At the same time, companies within this segment.
many materials, ranging such as Modern Meadow focus on
from carbon-free cement, sustainable production of leather and
steel, and wood-derived textile materials using biotechnology.
Beyond these companies, key technical
construction materials to
advances have recently been made
textiles and recyclable and in conductivity, alloy composition, Materials VC deals*
biodegradable plastics. catalysts, biofabrication, and more.
Nevada,
Redwood Materials Other $700M Series C July 28, 2021 2017
United States
Materials VC deal activity Modern Meadow
Plastics & Biobased
$130M Series C April 28, 2021 2011
New Jersey,
Materials United States
$0.8 90
Stockholm,
H2 Green Steel Industrial Materials $105M Series A April 26, 2021 2020
$0.7 80 Sweden
70 Massachusetts,
$0.6 Boston Metal Industrial Materials $50M Series B January 07, 2021 2012
United States
60
$0.5 SmartLam North Montana,
50 Industrial Materials $49M Series A December 09, 2020 2012
America United States
$0.4
40 Nevada,
Redwood Materials Other $40M Series B July 08, 2020 2017
$0.3 United States
30
$0.2 Infinited Fiber Plastics & Biobased Espoo,
20 $36M Series B June 30, 2021 2016
Company Materials Finland
$0.1 10 California,
Fortera Industrial Materials $30M Series B June 28, 2021 2019
$0.0 0 United States
2016 2017 2018 2019 2020 2021* Petah Tiqva,

Twine Other $28M Series D May 19, 2021 2015
Israel
Other deal value ($B) Industrial materials deal value ($B)
Plastics & Biobased California,
Vericool $23M Series A April 03, 2020 2015
Plastics deal value ($B) Deal count Materials United States
Source: PitchBook

Medtech
Company Highlights
hroughout the 2010s, the advent of connected solutions and
T
medtech venture digitizing platforms is shifting many
Exo is a health information and devices Neuralink creates brain-machine
Key takeaways funding within Tough medtech devices closer to patient and
company that is modernizing medical interfaces with the goal of building
Tech surged, with no consumer homes, with companies imaging through its high-performance a system with at least two orders of
sign of slowing down as offering products spanning from handheld ultrasound platform and AI. magnitude more communication channels
• After nearly linear growth in
the 2020s commenced. diagnostic tests and health monitors to Exo is also commercializing Exo Works, (electrodes) than current clinically-
venture funding throughout Driven by supportive macro factors wearable defibrillators. an ultrasound workflow solution that approved devices. Its device, called the
the 2010s, medtech is poised such as aging demographics and connects with any DICOM-enabled Link, can record from 1024 electrodes
ultrasound system. and is designed to be safe, fully wireless,
to see a record tally of VC increased spending on healthcare, Lastly, the vanguard of information- communicate through the skin, and can
invested in 2021, with well the sector has seen innovation in sourcing tools continues to develop as be used by patients in their homes.
virtually all domains. Medtech received increasingly rich and varied datasets
over $6 billion already
continued investment in robotic are generated by intimate, noninvasive
invested across close to surgical platforms—with CMR Surgical monitoring sensors. Startups are
600 transactions. raising $600 million in 2021 alone— pursuing brain-computer interfaces that
and technological improvements in will revolutionize care options for older
imaging and diagnostic devices, as adults and people with disabilities. Total Capital Raised: $322M Total Capital Raised: $363M
• Investors have demonstrated
well as focusing on cardiac diseases. Going forward, better integration
interest in companies that
At the same time, COVID-19 spurred between digital and hardware in
develop nonpharmacological investments into diagnostic companies medtech systems will likely be the
treatments such as surgical that offer affordable, point-of-care tests focal area for entrepreneurs and
robots and improved for infectious diseases. investors alike.
diagnostic tools—particularly
In clinical settings, care providers are
those that can empower
increasingly empowered with integrated
preventive care. diagnostics platforms that can better Medtech VC deals*
assess patient health. Simultaneously,
Cambridge,
CMR Surgical Therapeutic Devices $600M Series D June 27, 2021 2014
United Kingdom
Medtech VC deal activity Exo Diagnostic Devices $220M Series C July 29, 2021 2015
California,
United States
$7 900
California,
800 Neuralink Therapeutic Devices $205M Series C July 30, 2021 2016
$6 United States
700 Shanghai,
$5 CardiMED Therapeutic Devices $200M Series C October 01, 2020 2015
China
600
$4 California,
500 Visby Medical Diagnostic Devices $166M Series D May 31, 2020 2012
United States
$3 400 Suzhou,
Peijia Medical Therapeutic Devices $151M Series May 05, 2020 2013
300 China
$2
California,
200 Element Science Therapeutic Devices $145M Series C March 03, 2020 2011
United States
$1 100
MicroPort Shanghai,
Therapeutic Devices $130M Series D April 16, 2020 2015
$0 0 CardioFlow China
2016 2017 2018 2019 2020 2021* Oulu,
URA Health Other $129M Series B March 17, 2020 2013
Finland
Other deal value ($B) Diagnostic devices deal value ($B)
Gières,
Therapeutic devices deal value ($B) Deal count eCential Robotics Therapeutic Devices $121M Series January 19, 2021 2009
France
Source: PitchBook

Mobility
Company Highlights
ver the past several Given the determined push into
O
years, huge sums of EV manufacturing by incumbent
Rivian is an electric vehicle company Joby Aviation is a transportation
Key takeaways capital have flowed into carmakers, such as Volkswagen and
commercializing a connected electric company developing an all-electric
the mobility segment. Ford, as well as Tesla, which continues platform that can be flexibly applied to a vertical takeoff and landing aircraft
Between 2014 and to ramp up its EV production, range of applications, including consumer which it intends to operate as part of
• Of the vast sums of
2021 to date, annual considerable competition exists in vehicles as well as B2B products such as a fast, quiet, and convenient air taxi
capital flowing into tallies of VC invested leapt from the electric vehicle market. Ample the Amazon last-mile delivery vans. Its service beginning in 2024. The aircraft,
mobility—$13.0 billion roughly $400 million to $13 billion, market opportunities also remain in electric pickup trucks, the R1T and R1S, which has a maximum range of 150
are produced at a manufacturing plant in miles on a single charge, can transport a
across 206 transactions with financing volume growing at a EV charging infrastructure, which Normal, Ill., and are slated for delivery in pilot and four passengers at speeds of up
completed in 2021 through linear rate until recently. Competition is supported by both government late 2021. to 200 mph.
is fierce, with 2021’s median late-stage funding and increasing consumer
August 31—the bulk has
financing size already surging to more demand. Although this infrastructure
been concentrated in the than double that observed last year, build-out will take time, the inevitable
automotive space, primarily spurred by large raises from prominent electrification of transportation will
Privately held Publicly traded
development of autonomous mobility companies, such as Faraday produce many market niches for the
Future and Weltmeister. Additionally, foreseeable future. Key technical Total Capital Raised: $11.1B Total Capital Raised: $1.6B
and electric vehicles.
many companies pursuing electric challenges that innovative mobility
vehicles and supporting technologies businesses are tackling include: better
• Although air transport has for autonomous vehicles have decided integration between autonomous
attracted less capital, there to go public, including Rivian, which driving systems’ hardware and software
has been an uptick in the recently announced plans to IPO, and to enable navigation of more complex
past two years in aggregate Luminar Technologies and Embark, which terrain; cost-competitive battery
are among the 20 mobility companies capacity; expanded training datasets;
VC invested in the space, at
that completed reverse mergers with and improvements in sensor networks’
well over $1 billion per year SPACs in 2020 and 2021. capacity and capabilities. Mobility VC deals*
in 2020 and 2021 to date.
California,
Rivian Automotive $2,650M Series F January 19, 2021 2009
United States
Mobility VC deal activity Rivian Automotive $2,500M Series E July 10, 2020 2009
California,
United States
$14 350
California,
Rivian Automotive $2,500M Series G July 23, 2021 2009
United States
$12 300
Beijing,
Horizon Robotics Automotive $1,500M Series E June 11, 2021 2015
$10 250 China
Shanghai,
$8 200 Weltmeister Automotive $1,470M Series D September 09, 2020 2012
China
$6 150 Shanghai,
Enovate Motors Automotive $735M Series B October 13, 2020 2015
China
$4 100 California,
Joby Aviation Aircraft $590M Series C January 15, 2020 2009
United States
$2 50
Beijing,
Li Auto Automotive $550M Series D June 24, 2020 2015
$0 0 China
Hangzhou,
2016 2017 2018 2019 2020 2021* Leapmotor Automotive $525M Series B January 27, 2021 2015
China
Other deal value ($B) Charging infrastructure deal value ($B) Automotive deal value ($B) Shanghai,
Hozon Automotive $454M Series C December 02, 2020 2014
Aircraft deal value ($B) Deal count China
Source: PitchBook

Nanotechnology
Company Highlights
he most diverse In biotech, companies such as Seer
T
sector of Tough Tech are using new nanomaterials to
NexImmune is an emerging Nanoramic Laboratories is
Key takeaways is nanotechnology revolutionize the field of proteomics.
biopharmaceutical company advancing commercializing high temperature
because it applies to Other companies, including Glycomine a new generation of immunotherapies ultracapacitor technology born from
a broad range of end and NexImmune, leverage nanoparticles based on proprietary AIM™ technology. R&D funded by NASA, the Department
• With $1.9 billion
verticals. With the as intracellular delivery vehicles This nanotechnology platform, originally of Energy, and the Department of
invested in the past 20 unifying feature being a technology for small-molecule and biological developed at Johns Hopkins University, Defense. The company is the exclusive
months, nanotechnology with features at the micro- and nano- therapeutics. New treatment modalities, is the foundation for an approach to designer, manufacturer, and licenser of
immunotherapy in which the body’s Neocarbonix™ electrodes, Fastcap®
companies are scale, companies in this space are such as NaNotics, use nanoparticles own immune system is stimulated to Ultracapacitors and Thermexit™ thermal
experiencing unprecedented pursuing applications ranging from to deplete specific molecules from orchestrate a targeted T-cell response interface gap filler pads for industries like
industrial materials, cleantech, and circulation. against a disease. electric vehicle batteries and consumer
investor interest. and industrial electronics.
semiconductors, to biotech and other
sectors. Batteries and semiconductors are
Founded 2014 | MA, United States Founded 2009 | MA, United States
• Some of the larger enjoying record investor interest and
transactions explain the As a key area for nanotechnology, broad governmental support due to
the battery industry has received their applications into national security Total Capital Raised: $66M Total Capital Raised: $109M
surge in funding, with
several investments, with companies and the transition to clean energy.
companies such as handheld
including Nanoramic Laboratories and And with the biotech sector benefiting
ultrasound platform Exo Factorial Energy pursuing proprietary from long-term tailwinds, including
and orphan drug developer nanoparticle materials that would an aging population, nanomaterials
Glycomine, exemplifying allow EV drivers to travel farther will likely continue to proliferate into
the diverse ways that between charges. Underscoring the more industries.
attractiveness of the technology for
nanotechnology can
energy storage, Israeli battery developer
be deployed. StoreDot recently announced its plan for Nanotechnology VC deals*
a public debut via SPAC.
California,
Exo Diagnostic $220M Series C July 29, 2021 2015
United States
Nanotechnology VC deal activity Nanox Diagnostic $110M Series B July 28, 2020 2011
Neve Ilan,
Israel
$1.2 200
California,
Glycomine Biotech $68M Series B June 23, 2021 2014
United States
$1.0
Chengdu,
150 QitanTech Diagnostic $62M Series B June 08, 2021 2016
China
$0.8
California,
NaNotics Biotech $60M Series B April 01, 2021 2015
United States
$0.6 100
Nutcracker California,
Biotech $60M Series B September 23, 2020 2017
Therapeutics United States
$0.4
California,
50 Molekule Cleantech $58M Series C February 25, 2020 2014
United States
$0.2
Nearfield Semiconductors and Rotterdam,
$57M Series B July 29, 2021 2016
Instruments Electronics Netherlands
$0.0 0
California,
2016 2017 2018 2019 2020 2021* Seer Biotech $55M Series D May 12, 2020 2017
United States
Biotech deal value ($B) Diagnostic (incl. sequencing) deal value ($B) Cleantech deal value ($B) California,
Exo Diagnostic $51M Series B November 09, 2020 2015
Other deal value ($B) Semiconductors & electronics deal value ($B) Deal count United States

*As of August 31, 2021 *January 2020 - August 2021

Robotics & drones
Company Highlights
he robotics & drones One notable company in the space is
T
segment is experiencing CMR Surgical, which closed on $600
CMR Surgical manufactures the Versius, Zipline has built the world’s fastest and
Key takeaways unprecedented interest million in summer 2021 from Tencent
a next-generation surgical robot designed most reliable delivery drone as well as
from investors, as and SoftBank, among other firms, in to make robotic minimal access surgery the world’s largest autonomous logistics
technologies advance order to broaden commercialization of its universally accessible and affordable. network. It delivers medical products to
• Within the robotics &
and deepen immersion primary flagship product, robotic system local health facilities from distribution
drones space, $4.3 billion into multiple sectors. Agricultural Versius. Such well-funded companies centers in Ghana and Rwanda. To date,
has already been invested use cases, surgical robotics, last-mile will continue to push commercialization its systems have made more than 175,000
commercial deliveries.
in 2021 across close to delivery, and warehouse automation efforts and thus likely raise additional
400 completed financings. have been investor focal points— large rounds to fund expansion. However,
especially given how rapidly some technical innovations remain a focus
These figures compare
of the mature companies within this of R&D within the space—especially
favorably with the $3.2 space have been able to exit. Retaining as the push to replace overly manual,
Founded 2014 | Cambridge, United Kingdom Founded 2011 | California, United States
billion invested in 2020 roughly the same proportion of taxing tasks intensifies. In the long term,
across 473 completed deal value as in the past, unmanned demand for next-generation actuators
autonomous systems (UAS) also and sensors will likely ramp up. Robotic Total Capital Raised: $1B Total Capital Raised: $553M
rounds worldwide.
remain a focus for investors. Yet systems for use cases ranging from
the broader ecosystem of robotics warehouses to operating rooms need to
• A handful of large exits & drones—and software players in closely mimic human nervous system and
have boosted 2021 tallies to particular—continues to accumulate physical performance levels. Examples
an all-time exit value high investment. Use cases are also include the dexterity of fast-twitch muscle
of $2.3 billion. mushrooming as chip design advances fibers and integrated holistic movements
increase computational power, between visual recognition and muscular
incremental battery improvements reaction times. More broadly, similar
boost energy longevity, and training technical innovation will be demanded Robotics & drones VC deals*
data is increasingly available. across multiple robotics systems, thereby
necessitating sustained R&D by Tough Company name Segment Deal details Close date Founded Headquarters
Tech robotics companies.
Cambridge,
CMR Surgical Healthcare $600M Series D June 27, 2021 2014
United Kingdom
Robotics & drones VC deal activity Berkshire Grey Logistics & Fulfillment $263M Series B January 21, 2020 2013
Massachusetts,
United States
$4 600
California,
Zipline Healthcare $250M Series E June 30, 2021 2011
United States
500
$3 California,
Skydio Drones $171M Series D March 01, 2021 2014
United States
400
Beijing,
CloudMinds Other $153M Series B April 09, 2021 2015
China
$2 300
Massachusetts,
Locus Robotics Logistics & Fulfillment $150M Series E February 17, 2021 2014
United States
200
$1 Munich,
Agile Robots Other $130M Series B January 27, 2021 2018
Germany
100
Stockholm,
H2 Green Steel Other $105M Series A April 26, 2021 2020
0 Sweden
$0
2016 2017 2018 2019 2020 2021* California,
Flexiv Other $100M Series B December 30, 2020 2016
United States
Healthcare robotics & drones deal value ($B) Other (incl. software) deal value ($B) Singapore,
GreyOrange Logistics & Fulfillment $100M Series D September 10, 2020 2011
Drones deal value ($B) Deal count Singapore
Source: PitchBook

Semiconductors
Company Highlights
apital has poured into The semiconductor production
C
the semiconductor process remains highly sophisticated,
Graphcore has built a processor called Horizon Robotics builds edge AI
Key takeaways segment, with close requiring thousands of technical
the Intelligence Processing Unit (IPU) computing platforms for intelligent
to $6 billion invested steps paired with incredible precision, that enables AI researchers to undertake vehicles. It was the first Chinese company
through late summer while semiconductor applications entirely new types of work, not possible to commercialize both autonomous
• Semiconductors rose to
2021 across 200+ are growing increasingly complex. using current technologies, to drive the driving processors and software.
the forefront of Tough financings. Many semiconductor Beyond the power density challenges next advances in machine intelligence. Horizon’s solutions power advanced
Tech dialogues in 2020, startups are maturing into enterprises of systems on chips, the edge use cases driver-assistance systems (ADAS),
autonomous driving and intelligent in-
as multiple industries capable of commanding larger sums, introduced by advancing autonomous cabin AI applications.
suffered from pandemic- including Graphcore’s $300 million+ automotive systems demand significant
round in July 2021. Liquidity has customization. Some automotive
related constrictions in chip
followed suit, encouraging later- manufacturers have even begun
manufacturing, leading stage funding—especially given designing chips in-house. Companies
Founded 2016 | Bristol, United Kingdom Founded 2015 | Beijing, China
governments to renew large exits from NUVIA, Cambricon in other sectors may elect to take
efforts to foster domestic Technologies, GalaxyCore, and others. on as much of the semiconductor
Many governments and incumbent production chain in-house as they can Total Capital Raised: $713M Total Capital Raised: $3.4B
semiconductor production.
tech giant initiatives are laser- justify. However, such recourse will
focusing on semiconductors. From only prompt further VC investment
• Application-specific Apple’s introduction of M1 chips into startups across the segment, as the
semiconductors have drawn to government funding expansions frontier of semiconductor innovation
the bulk of VC invested— or launches of production facilities will be continually advanced by
especially in 2021 to within their own borders, the need for market needs.
innovation and widespread production
date—as multiple industries
of semiconductors is intensifying.
demand ever-increasing Semiconductors VC deals*
computational power
and customization. Company name Segment Deal details Close date Founded Headquarters
Beijing,
Horizon Robotics Application Specific $1,500M Series E June 11, 2021 2015
China
Semiconductors VC deal activity Horizon Robotics Application Specific $400M Series C2 January 07, 2021 2015
Beijing,
China
$7 350
Beijing,
Horizon Robotics Application Specific $350M Series C3 February 10, 2021 2015
$6 300 China
Bristol,
Graphcore General Purpose $307M Series E July 21, 2021 2016
$5 250 United Kingdom
Beijing,
$4 200 Horizon Robotics Application Specific $300M Series D May 01, 2021 2015
China
$3 150 Beijing,
ESWIN Computing General Purpose $281M Series B June 08, 2020 2016
China
$2 100 Shanghai,
Enflame Technology Application Specific $275M Series C January 05, 2021 2018
China
$1 50
Shanghai,
Biren Technology General Purpose $245M Series C March 30, 2021 2019
$0 0 China
2016 2017 2018 2019 2020 2021* California,

NUVIA Application Specific $239M Series B September 24, 2020 2019
United States
Other deal value ($B) Application-specific deal value ($B) Shanghai,
Biren Technology General Purpose $230M Series B August 20, 2020 2019
General purpose deal value ($B) Deal count China
Source: PitchBook

Spacetech
Company Highlights
n the past two years, internet constellations to provide
I
spacetech companies global internet access and, potentially,
Relativity Space is developing a Accion Systems is developing
Key takeaways working to make a positioning, navigation, and timing
proprietary 3D-printed rocket, which it satellite in-space propulsion systems
more cost-effective (PNT) alternative to GPS. Other claims uses 100x fewer parts compared that leverage its proprietary ion beam
rockets and launch prominent companies include: Kymeta, to traditional rockets. The company is technology. The company claims that its
• Spacetech funding has
systems have achieved which develops low-power satellite looking to leverage this technology in system achieves the highest thrust-to-
skyrocketed in the past monumental technical and commercial antennae that support mobile satellite- order to build the first autonomous rocket power ratio on the market compared to
five years, cresting at 129 milestones. Incumbents such as SpaceX, cellular connection; Astroscale, which production facility and offer satellite its direct competitors.
launch services.
completed financings in Blue Origin, and Virgin Galactic have is working to provide space debris
2021 to date, for a total continued to pave the way toward removal services; and Planet Labs,
private, consumer space access by which plans to offer earth imaging
of $2.3 billion, favorably
dramatically reducing the cost to get services for applications such as climate
compared to 2020’s 129 to space on a price-per-weight basis. monitoring, crop yield prediction,
Founded 2015 | California, United States Founded 2014 | MA, United States
completed rounds at $2.7 Meanwhile, younger companies such as and disaster response. These market
billion. Rocket Lab and Astra have announced opportunities are expected to accelerate
SPAC mergers at initial valuations growth for in-space systems and Total Capital Raised: $1.3B Total Capital Raised: $66M
of $4.1 billion and $2.1 billion, services over the coming years.
• The next generation of
respectively.
spacetech companies are
addressing challenges with Now, the next generation of spacetech
in-space manufacturing, companies is tackling in-space systems
satellite propulsion, space and service opportunities, including
in-space manufacturing, satellite
debris cleanup, earth
propulsion, and space debris cleanup.
observation, and global Notable groups in this realm include Spacetech VC deals*
internet connectivity. Amazon’s Project Kuiper and SpaceX’s
Starlink, which aim to deploy satellite Company name Segment Deal details Close date Founded Headquarters
Launch Systems & California,
Relativity Space $650M Series E June 08, 2021 2015
Rockets United States
Spacetech VC deal activity Relativity Space
Launch Systems &
$500M Series D November 23, 2020 2015
California,
Rockets United States
$3.0 140
Changchun,
ZhangGuangWeiXing Other $372M Series November 29, 2020 2014
120 China
$2.5
California,
100 Astranis Other $280M Series C April 14, 2021 2015
United States
$2.0
Washington,
80 Kymeta Other $215M Series B September 17, 2020 2012
United States
$1.5
60 Launch Systems & Beijing,
LandSpace $173M Series C September 09, 2020 2015
$1.0 Rockets China
40 Launch Systems & Beijing,
iSpace $171M Series B August 25, 2020 2016
$0.5 Rockets China
20
Launch Systems & California,
ABL Space Systems $170M Series B March 25, 2021 2017
$0.0 0 Rockets United States
2016 2017 2018 2019 2020 2021* Texas,

Axiom Space Other $130M Series B February 16, 2021 2016
United States
Other deal value ($B) Launch systems & rockets deal value ($B) Deal count Ramonville-Saint-
Kineis Other $111M Series February 03, 2020 2018
Agne, France
Source: PitchBook

METHODOLOGY
The datasets informing this report were derived from the PitchBook Platform.
To define Tough Tech, The Engine and PitchBook amassed fifteen subsectors
that comprise Tough Tech via custom searches in the PitchBook Platform using
keywords, industries, and verticals. Each custom search was then reviewed
to add or exclude companies. In addition, two limiting criteria were utilized:
the company founding date had to be on or after January 1, 2009, and the
date range of the financings included for analysis of overall transactions had
to be between and inclusive of January 1, 2012, and August 31, 2021. When
assessing companies that span multiple subsectors (such as nanotechnology
companies working in cleantech), we erred on the side of inclusion of the same
company in multiple segments to make the individual subsegment views as
complete as possible. We have unduplicated the list when aggregating data into
the three primary segments and again, when aggregating into the overall Tough
Tech sector. The key exceptions to overlapping sectors are summarized below:
• AI & ML segment excludes any companies related to advanced &

quantum computing.
• Cleantech segment excludes any companies related to mobility or agtech
& foodtech.
• Materials sector excludes any companies related to battery nanomaterials.
• Life sciences sector excludes any companies related to agtech & foodtech
or medtech.
• Robotics & drones sector excludes any companies related to mobility,
spacetech, and 3D printing.
Beyond this, PitchBook’s customary methodology for venture datasets was

utilized. For details, see the full list of PitchBook report methodologies here
https://pitchbook.com/news/articles/pitchbook-report-methodologies
Please note that definitions of subsegments, and the introduction of the The Engine, built by MIT, is a venture firm that invests in early-stage companies solving the world’s
biggest problems through the convergence of breakthrough science, engineering, and leadership.
main segments, precipitated an update in the methodology from that used to Our mission is to accelerate the path to market for Tough Tech companies by providing access to a
generate the inaugural 2019 Tough Tech Report. unique combination of investment, infrastructure, and community.
www.engine.xyz

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2021

Tough Tech Landscape

Human Health 14 globe, innovators are harnessing their

Advanced manufacturing 22 investors willing to support the necessary

Cleantech 32 into Tough Tech. Capital commitments

Nanotechnology 42 we are seeing exceptional individuals make

Source: PitchBook Source: PitchBook

| 4 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 5 |

| 6 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 7 |

Deal value ($B) Deal count

invested from 2016 1,200 RA Capital Management 89 $20

through August 2021 $10

Matrix Partners China 63 Source: PitchBook

| 8 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 9 |

| 10 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 11 |

Average & Median Exit Valuations in Climate Change ($M)

| 12 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 13 |

Average & Median Exit Valuations in Human Health ($M)

Investor Deal count Investor Deal count $400

OrbiMed 94 Alexandria Venture Investments 56 $300

| 14 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 15 |

Investor Deal count Investor Deal count $400

SOSV 39 Plug and Play Tech Center 16 $300

Alumni Ventures Group 27 Khosla Ventures 16 $200

| 16 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 17 |

D printing is expanding widened for well-funded, mature

| 20 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 21 |

computing PsiQuantum is developing a general-

| 22 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 23 |

ownwind of 3D commodities such as cement and

| 24 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 25 |

etween 2019 and through new production methods

Company name Segment Deal details Close date Founded Headquarters

300 Plant & Insect-based Food Illinois,

$3 Plant & Insect-based Food California,

| 26 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 27 |

espite the tremendous & ML technologies have significantly

Company name Segment Deal details Close date Founded Headquarters

| 28 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 29 |

till relatively nascent New materials and decarbonization

| 30 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 31 |

he macro factors However, in every year since

Company name Segment Deal details Close date Founded Headquarters

| 32 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 33 |

y a large margin, life Many of those trends led to the shift

2016 2017 2018 20192 020 2021* California,

| 34 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 35 |

etween 1995 and 2015, Given incumbency advantages, much

2016 2017 2018 2019 2020 2021* Petah Tiqva,

| 36 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 37 |

hroughout the 2010s, the advent of connected solutions and

| 38 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 39 |

ver the past several Given the determined push into

| 40 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 41 |

he most diverse In biotech, companies such as Seer

Source: PitchBook Source: PitchBook

| 42 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 43 |

he robotics & drones One notable company in the space is

| 44 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 45 |

apital has poured into The semiconductor production

2016 2017 2018 2019 2020 2021* California,

| 46 | 2021 Tough Tech Landscape 2021 Tough Tech Landscape | 47 |

n the past two years, internet constellations to provide