How to Secure Series B+ Funding for Cleantech Manufacturing Scale-ups

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In 2024, climate tech venture and growth investment still hit about $30 billion across 1,460 deals, but that was 14% lower than 2023, investors have basically moved from FOMO to “prove it” mode, especially at Series B and beyond. Securing Series B+ funding is a pivotal milestone for cleantech manufacturing scale-ups looking to expand production, enter new markets, and prove they can scale sustainably.

At this stage, investors are no longer betting on ideas, they’re backing proven manufacturing solutions, strong unit economics, and clear paths to commercial scale. They want evidence that your technology works in the real world, your operations can be replicated efficiently, and your growth story aligns with long-term climate and sustainability goals.

This guide dives into Series B+ funding essentials for cleantech manufacturing, helping you understand what investors are really looking for and how to position your company to secure the capital you need to scale.

Series B investors in ClimateTech and CleanTech manufacturing

The manufacturing scale-up phase in ClimateTech and CleanTech has become a key focus for Series B investors, driven by growing demand for sustainable solutions at commercial scale.

Today, there are 722 active investors operating in this space, signaling huge opportunity, but also intense competition. This section looks at who these investors are, the main market trends, and the biggest challenges manufacturing-focused startups face at Series B.

Progressing beyond Series A remains difficult: only about one in three startups advance to Series B, highlighting just how selective investors are at this stage. That conversion rate underlines the need for a targeted strategy and strong traction when you’re pitching capital-intensive, manufacturing-led projects.

To secure Series B+ funding, cleantech manufacturing scale-ups must show scalable technology, align their business model with investor expectations, and combine traditional equity with alternative funding instruments. Most rounds involve dilutive capital, where new shares are issued and founder ownership is reduced, making it even more important to choose the right investors and structure.

Founders should focus on:

• Identifying top ClimateTech and CleanTech investors
• Aligning growth metrics with Series B expectations
• Compiling robust due diligence materials
• Leveraging alternative funding instruments alongside equity
• Clearly articulating a credible exit strategy

Case Studies

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The Expanding Series B Investor Landscape

Series B funding has evolved into a critical stage for ClimateTech and CleanTech startups aiming to transition from prototypes to large-scale production. However, the average Series B fundraising timeline extended over two years in 2024, highlighting the increasing complexity of due diligence and negotiations. Founders must prepare for prolonged timelines, ensuring their strategies align with investor expectations.

Key Trends Shaping Series B Investments

• Policy-Driven Manufacturing Localization: Initiatives in the US and EU are reshaping supply chains by incentivizing onshore production and reducing import dependencies. These policies not only expedite manufacturing but also attract investors focused on localized solutions.
• Flight to Quality in Later-Stage Funding: Investors are prioritizing proven technologies, conducting rigorous evaluations to minimize risks. Startups with strong performance metrics and credible innovations stand a better chance of securing funding.
• Critical Materials Supply Chain Innovation: Refining and recycling essential resources for battery production and heavy industry decarbonization are gaining traction. Startups pioneering supply chain technologies can position themselves as unique investment opportunities.

Challenges in the Current Market

Challenges in the current cleantech funding market

The outlook for ClimateTech and CleanTech is promising, but the funding environment has become tougher. In 2024, global climate tech investment fell 14% to $30 billion, and EU cleantech VC investment dropped 24% year-on-year to €8.8 billion. Investors are still deploying capital, but with far more selectivity.

Even in this environment, standout innovation can still attract significant funding. Empery Digital, for example, secured $501.43 million for its electric vehicle manufacturing platform, backed by prominent cleantech investors. Their success underlines the importance of tight alignment between product, market, and investor thesis.

If your initial Series B outreach stalls, it’s a signal to:

• Refine your pitch and sharpen the narrative
• Explore government grants and public funding programs
• Consider bridge rounds from existing investors to extend runway

For founders looking beyond traditional equity, examining carbon credit financing startups can offer useful insight into non-dilutive funding options that complement Series B capital and support long-term scale-up plans.

Expanding Funding Pathways: Debt and Hybrid Instruments

As cleantech manufacturing scale-ups mature, relying solely on equity can lead to excessive dilution. These companies increasingly supplement Series B+ rounds with debt financing, green bonds, and hybrid capital structures.

Compared with software, climate hardware and manufacturing startups usually need 20–50% more equity, and almost double the total capital once you include grants, debt and other non-dilutive funding, think many more rounds, not a simple Seed–A–B–exit story. Blending equity with private credit or government-backed loans can optimize the scale-up’s capital stack. This appeals to a broader investor base.

1. Using Policy Incentives and State Aid

Evolving industrial policy frameworks, such as new production-based incentives and state aid schemes, are making a significant impact on funding availability. Proactive scale-ups are integrating government guarantees, tax credits, and regional grants into their financing strategies. This not only de-risks investments for Series B+ backers but also strengthens the company’s competitive position in the market.

2. Building Supply Chain Resilience

With growing emphasis on domestic manufacturing and critical materials security, investors are scrutinizing supply chain strategies more than ever.

A good benchmark for how capital-hungry this gets: battery maker Northvolt has reportedly raised 14 separate rounds, 8 equity and 6 debt, versus the neat 3–4 equity rounds you see in typical software exits.

3. Utilize Cross-Sector Partnerships for Resilience

Building on supply chain strategies, cross-sector partnerships can enhance resilience and unlock new resources for scale-ups. Collaborating with firms in adjacent industries may provide access to critical materials, logistics expertise, or advanced technologies.

These alliances help mitigate disruptions and diversify sourcing options. Integrating partnership strategies signals adaptability and strengthens investor trust in your operational model.

Preparing for Rigorous Due Diligence

Due diligence is the process by which investors review and verify a company’s records and processes before deciding to fund. The Series B+ fundraising process is more thorough and time-consuming than ever. Investors expect a comprehensive data room, detailed technical and financial documentation, and clear operational milestones.

Founders should be ready for extended negotiations and in-depth scrutiny of their business model, team, and go-to-market strategy. Preparation and transparency are key to building investor confidence.

Regulatory Readiness as a Due Diligence Priority

Building on the need for thorough documentation, regulatory readiness is increasingly scrutinized during Series B+ due diligence. Founders must demonstrate compliance with evolving environmental, safety, and reporting standards. Addressing regulatory gaps early can prevent costly delays and build investor confidence. This approach ensures your scale-up meets both market and legal requirements, strengthening your position in negotiations.

Exploring Alternative and Non-Dilutive Funding Sources

Beyond traditional venture capital, alternative funding options such as carbon credit financing, milestone-based grants, and strategic partnerships are gaining traction. These sources can supplement Series B+ rounds, reduce reliance on equity, and provide additional validation for your business model. Actively seeking out climate funds, government programs, and corporate co-investments can enhance your funding mix.

Best Practices for Updating Startup Profiles

• Regularly review and update funding history, team composition, and growth milestones to reflect current achievements and future goals.
• Incorporate recent partnerships, product launches, and market expansion details to showcase ongoing traction and strategic direction.
• Utilize recognized platforms to maintain visibility among investors, ensuring data accuracy and completeness for benchmarking and outreach.

1. Engaging Strategic and Individual Investors

While institutional VCs remain important, individual investors, family offices, and corporate venture arms are playing a growing role in Series B+ deals. These investors often bring sector expertise, industry connections, and a willingness to support long-term growth. Tailoring your outreach to align with their strategic priorities can unlock larger checks and valuable partnerships.

2. Articulating a Clear Path to Profitability and Exit

Series B+ investors are increasingly focused on the road to profitability and potential exit opportunities. Demonstrating a credible plan for scaling revenues, achieving operational efficiency, and securing offtake or customer agreements is essential. Including detailed financial projections and outlining possible exit scenarios, such as IPOs or acquisition, will strengthen your investment case.

3. Elevating Your Team and Execution Capabilities

Operational excellence is a major focus at this stage. Investors look for experienced leadership, a strong technical team, and a proven ability to deliver on milestones. Showcasing recent key hires, advisory board additions, and successful project execution will help differentiate your company in a competitive funding environment.

4. Showcasing ESG and Impact Metrics

With sustainability reporting now standard practice, Series B+ investors expect robust ESG and impact data. Clearly communicating your achievements in emissions reduction, resource efficiency, and broader societal benefits can be a powerful differentiator and attract mission-aligned capital. This also showcase how the investment trends are increasing within the green technology.

5. Competing on a Global Stage

With increased competition from North America, Europe, and Asia, scale-ups must demonstrate how they can compete globally. Benchmarking your technology and business model against international leaders and articulating your unique value proposition will help attract cross-border investors and partners.

At Qubit Capital, we understand the complexities of fundraising and offer tailored support to help you achieve your goals. If you're ready to accelerate your Series B manufacturing scale-up, our Fundraising Assistance service provides the expert guidance you need to secure capital. Let’s drive your growth together.

Investor Profiles

By the time you’re pitching a Series B or C for a factory, you’re not just talking to classic VCs , corporates and their investment arms have been involved in about a quarter of climate-tech deals for several years, and they disproportionately show up in mid- and late-stage rounds where manufacturing scale-up happens.

Manufacturing-focused funds are especially interested in startups innovating in energy storage, sustainable materials, and industrial decarbonization, where proven technology now needs serious capital to scale.

From 2018–2024, there were 9,200+ transactions totaling US$170 billion across related cleantech sectors, clear evidence of strong investor engagement, active deal flow, and growing interest in scalable climate solutions. This transaction volume also signals a maturing market with multiple strategic and financial exit pathways beyond Series B.

As companies move through Series B and towards later stages, cleantech IPOs and other public-market exits become viable options that can align with long-term growth strategies. Understanding how your business fits into this broader funding and exit land tailoring your strategy to investor priorities, is essential for successfully navigating this phase.

Individual Investors

The cleantech investment landscape is increasingly shaped by individual investors who bring unique perspectives and resources to the table. These angel cleantech backers often focus on early-stage companies, providing not just capital but also mentorship and strategic guidance. Their involvement can be pivotal for startups aiming to scale innovative solutions in renewable energy, sustainable agriculture, and other climate-focused sectors.

Turn climate vision into a fundable plan. The step-by-step green business plan for Cleantech Venture guide covers positioning, revenue models, and proof points.

Typical Investment Ranges

Individual climate tech investors tend to operate within a broad spectrum of investment sizes. For instance, angel investors often contribute anywhere between $25,000 to $250,000 per deal, depending on the stage and potential of the startup. On the higher end, some seasoned investors affiliated with groups like Climate Capital or Mayfield may write checks exceeding $1 million, particularly for companies demonstrating strong traction or groundbreaking technologies.

This diversity in check sizes allows founders to approach investors strategically, tailoring their pitch based on the investor’s typical range. For example, SOSV, a global venture capital firm with a focus on early-stage startups—often supports companies through accelerator programs, offering smaller initial investments but significant follow-on funding opportunities.

Strategic Focus Areas

Individual investors in cleantech frequently align their investments with personal passions or areas of expertise. Some prioritize technologies that reduce carbon emissions, while others focus on innovations in energy storage or water conservation. Climate Capital, for instance, has a strong emphasis on scalable solutions that address climate change directly, often backing startups in renewable energy and carbon capture.

Mayfield, on the other hand, is known for its interest in transformative technologies that can disrupt traditional industries. Their portfolio includes companies leveraging AI and IoT to optimize energy consumption and reduce waste. Founders should research these strategic focuses carefully to ensure alignment when approaching potential investors.

Unique Value Propositions

Beyond financial support, individual investors often offer invaluable resources to cleantech startups. Many bring decades of industry experience, opening doors to partnerships, pilot programs, and regulatory insights. For example, investors associated with SOSV frequently provide access to global networks and mentorship through their accelerator programs, helping startups refine their business models and scale effectively.

Another unique aspect is the flexibility individual investors can offer. Unlike institutional investors, they may be more willing to take risks on unproven technologies or unconventional business models, making them ideal partners for startups pushing the boundaries of innovation.

Tailoring Your Approach

Understanding the diversity among individual investors is crucial for founders seeking funding in the cleantech space. Researching their typical check sizes, strategic focuses, and value propositions can help craft a compelling pitch that resonates with their priorities. Whether targeting angel investors for seed funding or seasoned backers for growth capital, aligning your vision with their interests is key to securing support.

Conclusion

Securing funding for Series B manufacturing scale-ups requires a strategic approach that balances extended timelines, diverse investor profiles, and the evolving policy landscape. By crafting a compelling narrative and structuring your pitch to resonate with investors, you can effectively address their concerns while showcasing the scalability of your business. These strategies not only enhance engagement but also position your company for long-term success in a competitive market.

At Qubit we understand cohort durability, margin structure, and reporting discipline. Run a valuation sanity check with our Cleantech fundraising assistance and turn metrics into momentum.

Key Takeaways

• Series B+ funding for cleantech manufacturing scale-ups requires a strategic approach, extended timelines, and thorough preparation.
• Investors are prioritizing proven technologies, strong performance metrics, and supply chain resilience in their funding decisions.
• Policy-driven incentives and state aid are increasingly important for attracting capital and de-risking investments.
• Alternative funding sources, such as debt, hybrid instruments, and carbon credit financing, can supplement traditional equity rounds.
• Tailoring your pitch to align with investor priorities, whether institutional, strategic, or individual, significantly boosts your chances of securing growth capital.