Greentown Labs Secures $4 Million Funding Boost for Climate Tech Expansion

Greentown Labs Secures Major Funding

Greentown Labs, a Somerville-based clean-tech incubator, has successfully secured over $4 million in funding, marking its first new round since becoming a nonprofit organization. This crucial financial support is aimed at propelling Greentown into its next growth phase, extending beyond its existing hubs in Somerville and Houston.

The funding comes from a diverse array of contributors, including:

• MassDevelopment: Over $1 million in grant funds.
• City of Somerville: A $500,000 loan.
• Rice University: A $500,000 loan plus a grant exceeding $1 million.
• A group of Texas energy sector investors led by Bobby Tudor and David Baldwin, contributing another $1 million grant.

A Tumultuous Journey

This funding round caps a challenging two years for Greentown Labs, which positions itself as the largest climate-tech incubator in North America. The organization is set to appoint its fifth chief executive since the departure of Emily Reichert in late 2022. In early 2023, Greentown transitioned to 501c3 status to explore new revenue streams, including philanthropic funding to support its $15 million annual budget. Despite facing scrutiny from climate activists for receiving funds from Saudi Aramco, Greentown has continued to attract support from various oil companies.

Current Operations

Currently, Greentown hosts 140 clean-tech startups in Boston and 75 in Houston. While these startups pay rent, approximately two-thirds of Greentown's budget is funded by corporate partners, known as “terawatt partners”, who benefit from close access to innovative entrepreneurs.

Interim CEO Kevin Dutt emphasized that the new funds are intended to help Greentown reach climate-tech entrepreneurs beyond its physical locations, aiming to expand its impact significantly. He acknowledged the organization’s high success rate and the strong interest in growth beyond their traditional bases.

Boardroom Shakeup

The funding has also led to a shakeup in the boardroom, with new members joining from both Boston and Houston. Notable returning members include co-founder Jason Hanna and John Hitt, while Tudor will chair the board. New board members with Boston connections include:

• Bill Aulet (MIT entrepreneurship professor)
• Georgina Campbell Flatter (executive director of TomorrowNow)
• Juan Carlos Morales (founder of Surfside Capital Advisors)
• Pam Reeve (former Lightbridge CEO)

Looking Ahead

Greentown Labs has evolved significantly since Reichert joined as its first employee over a decade ago. Dutt, who plans to pass the leadership to a new CEO in January, expressed optimism that this recapitalization will foster further growth, stating, “This is really about a reaffirmation of the strength and success of the organization.”

For more insights, connect with Jon Chesto at jon.chesto@globe.com or follow him on Twitter.