A Year at HG Ventures
HG Ventures’ Jon Schalliol shares some key moments from 2024, reflects on some of the firm’s activities from what was another year of uncertainty for venture capital, and looks ahead to what 2025 may have in store.
Venture capital is a forward-looking industry; we are in the business of making big bets on the future, and on the industries and companies that will have a hand in shaping it. But this is a good moment to look back on the past year as well as look forward. Under the leadership of John Glushik, HG Ventures continues its commitment to fostering innovation and supporting transformative technologies, even amidst a dynamic market environment.
The Venture Capital Landscape in 2024
The venture capital sector experienced a year of recalibration. According to PitchBook, global deal activity in Q3 slowed for the third consecutive quarter, as the market sought balance amid looming rate cuts. Despite this, certain sectors saw substantial investments, with U.S. VC funding reaching $55.6 billion in Q2 2024, the highest level in two years. In contrast to this high level of investment, exits have been historically low at $69 billion for 938 companies, according to NVCA through Q3.
Now in 2025, the market looks to be the most investor friendly in more than a decade for late-stage deals and swinging less-so for early-stage startups. PitchBook has made its VC Dealmaking Indicator (below) publicly available, which takes account of a range of factors like capital demand to supply ratio, valuation change, years between rounds, etc. There are many factors geek-out on – dig into the methodology here.
New Portfolio Companies in 2024
In the last year, HG Ventures welcomed more innovative companies into our portfolio:
INERATEC: We started 2024 by participating in INERATEC’s $129 million raise. Headquartered in Karlsruhe, Germany, INERATEC has developed a microstructured reactor technology that transforms renewable electricity and CO2 into synthetic fuels. Its products include e-fuels for sustainable aviation fuel (SAF) and diesel, as well as chemical feedstocks (waxes and methanol) – all of which contribute to the reduction of carbon emissions.
Aclarity: We also announced our funding in Aclarity, which specializes in destroying PFAS contamination in water. Aclarity complements one of our earliest portfolio companies, UK-based Puraffinity, which is focused on PFAS filtration. This aligns with our focus on adding value to portfolio companies through The Heritage Group research group and environmental businesses, as well as our commitment to environmental sustainability. Ginger Rothrock led this deal for HG Ventures and writes about the investment rationale here.
PinPoint Analytics: In September we led the investment round for AI-powered construction data platform, PinPoint Analytics. PinPoint leverages AI to enhance efficiency and decision-making in the construction industry, reflecting our interest in driving advancements in the heavy-duty construction industries. Read more about PinPoint Analytics here.
More to Come! We also added two new portfolio companies toward the end of 2024 that will be announced soon.
Follow-On Investments in 2024
We also continued to support the growth of our existing portfolio companies through a range of follow-on investments. While not all follow-ons are announced, we can share the following:
Vartega: In March, we announced our participation in Vartega’s Series A, with $10 million to fund the expansion of its recycling capabilities for advanced materials, promoting sustainability in manufacturing. Vartega co-founder and CEO, Andrew Maxey tells his story here, and Ginger Rothrock saw his vision brought to life when she visited Vartega’s new plant in Colorado.
ZwitterCo: We made a follow-on investment in ZwitterCo, as part of its $58.4 million Series B funding round. This will enable ZwitterCo to scale its innovative membrane solutions for wastewater treatment, addressing critical water security challenges. Ginger Rothrock is a ZwitterCo board observer and recently interviewed founder and CEO, Alex Rappaport, to compare notes on what makes a successful founder-investor partnership. We shared excerpts from that conversation here.
SOLARCYCLE: A little over one year after our initial investment in SOLARCYCLE, we were proud to follow-on, as the company announced its plans to open a new 5 GW solar panel recycling facility in Georgia that will initially recycle 2 million solar panels per year.
Pretred: We were an early investor in Pretred, a waste-to-value company manufacturing rubber safety barriers from discarded tires. In the past year the company has started to gain important recognition for its innovative work, securing some important grants and being named of ‘The Coolest Things Made in Colorado’. Recently, we were proud to co-lead Pretred’s Series A raise, and we look forward to new innovations planned for 2025.
Portfolio Milestones and Accolades
We were proud to see so many of our portfolio companies achieve notable milestones last year:
Puraffinity, a UK-based startup focused on removing harmful PFAS (‘forever chemicals’) from water, reached a level of maturity with a seasoned new CEO (Vincent Caillaud), as well as a new COO and CTO. Meanwhile, co-founder and CEO Henrik Hagemann moved into the role of Chief Product and Innovation Officer. With this expanded and strengthened senior team, and a fresh injection of capital from its raise, Puraffinity is well-placed to continue scaling its operations and its impact.
INERATEC also bolstered its senior team, with the appointment of a new Chief Commercial Officer, Maximilian Backhaus. The firm has also reached an agreement with Chile’s premier fuel distributor, COPEC, to potentially construct and operate a power-to-Liquid plant.
Meanwhile, Circulor, a supply chain traceability solution, was included in the Global Cleantech 100 list, which recognizes the most promising companies that can transform commitments in innovation and sustainability into real actions that achieve net zero. Circulor was also named by Bloomberg as one of the top 25 UK startups to watch.
Valerann, which uses AI and advanced data analytics in its traffic management solutions, was the recipient of the Prince Michael International Road Safety Award in recognition of its technology’s contribution to mitigating traffic injuries and fatalities.
Electric commercial vehicle manufacturer, Battle Motors has this year continued its drive to revolutionize that sector, signing new customers and expanding its production. HG Ventures’ Managing Director, John Glushik visited the firm’s Oklahoma facility to see the latest developments for himself.
SOLARCYCLE, in addition to the announcement of its $62M investment in its new Georgia plant, has this year inked a number of deals with major partners and customers, including Runergy Alabama, Inc., Heliene, and Canadian Solar.
A New Entrepreneur-in-Residence
These and our other portfolio companies all stand to benefit from our appointment of Mitch Black to the position of Entrepreneur-in-Residence. Mitch brings a wealth of experience in scaling startups and driving business growth, making him an invaluable resource for our portfolio companies. He will provide strategic guidance, support founders in navigating growth challenges, and leverage his expertise to help bring innovative ideas to market. Read more about this in Mitch’s own words, here.
Leading the Conversation
In February we partnered with Global Corporate Venturing (GCV) to host an event that focused on best practice in operations and finance for corporate venture capital (CVC) teams. Delegates from more than two dozen CVCs had the opportunity to network and share best practices vital areas including: financial and non-financial benchmarking and reporting; portfolio data collection and management; parent company services and obligations; platform management; and the role of incubation and innovation.
We also convened an action-packed conference of thought leaders who share a vision of a future for roads that is safe, efficient, and sustainable. The Future of Roads event was a follow-up to the Future of Roads report we published a few months prior. Its goal was to address road infrastructure challenges and opportunities with a diverse group of stakeholders, including entrepreneurs, investors, academics, and leaders across government and the private sector. Speakers talked about more sustainable and durable materials, the incorporation of electrification, management of autonomous vehicles, technologies to improve flow and reduce traffic accidents, artificial intelligence, and more. HG Ventures’ Platform Manager, Meghan Hunt coordinated the event and summarizes the key take-aways here.
Senior Director, Ginger Rothrock was invited to address the Global Water Summit in London, where she spoke about water security in a changing climate, reinforcing our commitment to investing in technologies that ensure sustainable water resources. You can read a summary of her thoughts on the most pressing issues, here.
Ginger also spoke at the CIEX Chemical Innovation Summit, which we were pleased to host at The Heritage Group’s headquarters in Indianapolis.
HG Ventures’ Nick Arnold remained plugged into the latest technological developments through his attendance at major industry events, including Cleantech Forum North America and the Hello Tomorrow Summit, in Paris.
Ginger Rothrock and Meghan Hunt represented HG Ventures at the Envita Solutions Sustainability Innovators Summit; and I was pleased to lead a session on finance and operations best practices at the fifth Counter Club gathering of corporate VCs, in San Francisco.
Industry Recognition
We are proud once again to have been included in the influential Climate50 list of leading climate tech investors. Inclusion in league tables such as this one is an important means of coming to the attention of more founders and reaching potential new investments.
Key members of our team were also recognized for their individual achievements: Our Managing Director, John Glushik was named one of the world’s 100 most influential figures in corporate venture capital, through his inclusion in the 2024 ‘Powerlist’ compiled by Global Corporate Venturing (GCV), an acknowledgment of his leadership and contributions to the venture capital industry. John shared some of his insights on an episode of the Liberty Ventures podcast earlier this year.
Ginger Rothrock was recognized as one of just 50 Emerging Leaders in corporate venturing. Ginger’s expertise continues to drive our investment strategies and support for many of our portfolio companies.
Looking Ahead
As we think about the year ahead, HG Ventures remains steadfast in its mission to support transformative technologies and exceptional entrepreneurs. While 2024 was a year of recalibration in the venture capital market, we enter 2025 with optimism, fueled by the resilience and creativity of the companies we back and the sectors in which we invest.
The venture investment climate is showing signs of stabilization, with PitchBook predicting a rebound in late-stage dealmaking as market confidence improves. Climate tech, sustainability innovation, and advanced manufacturing—core focus areas for HG Ventures—are expected to continue attracting significant interest, driven by both regulatory momentum and corporate commitments to achieving net-zero goals. According to BloombergNEF, investment in global clean energy alone is forecasted to exceed $1 trillion in 2025, marking a pivotal moment for sectors like renewable energy, water technology, and circular economy solutions.
We remain confident that innovation will continue to lead the way in addressing the world’s most pressing challenges. Together with our partners, founders, and team, we look forward to making 2025 another year of meaningful progress and impact.