The Rise of Green Unicorns: Can Canada become a cleantech leader?

With the surge of climate-focused startups achieving billion-dollar valuations, does Canada have the potential to become a global cleantech leader?

Green unicorns are one of the most exiting investment trends in recent years. These clean-tech startups are not only achieving billion-dollar valuations, but they’re doing it at an impressive pace, reaching the billion-dollar status in just four years compared to the typical seven years for more conventional startups.

Cruise, the U.S.-based self-driving car company, is the global leader in the green unicorn landscape, boasting a valuation exceeding $14.6 billion. In terms of a Canadian example, Nexii Building Solutions Inc., based in Vancouver, British Columbia, reached unicorn status in under 31 months in 2021. The company’s sustainable products use a breakthrough building material, Nexiite, that has comparable properties to concrete but contains no Portland cement or lime, significantly reducing end-to-end carbon emissions and holding much promise, though the company is currently undergoing restructuring. There are challenges involved with rapid growth.

This rapid growth in green unicorns is catalyzed by two key factors:

• Regulatory changes: Governments are increasingly enacting climate regulations, creating a strong market pull for clean technologies.
• Shifting consumer preferences: Demand for climate solutions is surging as society prioritizes…