Greentown Labs has secured over $4 million in new funding as it prepares for its next stage of growth beyond its physical hubs in Somerville, Massachusetts, and Houston, Texas. This funding marks its first significant round since transitioning to nonprofit status. MassDevelopment, a state economic development agency, is contributing just over $1 million in grant funds.
The city of Somerville is providing a $500,000 loan, while Rice University, Greentown’s Houston landlord, is offering both a $500,000 loan and a grant exceeding $1 million. A group of Texas energy sector investors led by Bobby Tudor and David Baldwin is providing another $1 million grant. The funds are expected to be distributed to Greentown over the coming year.
The new financial support comes after a challenging two years for Greentown Labs, which is recognized as the largest climate-tech incubator in North America. The organization recently achieved 501(c)(3) nonprofit status in early 2023, allowing it to explore new revenue streams, such as philanthropic funding, to support its $15 million annual budget. Greentown faced some controversy from climate activists for accepting financial support from oil giant Saudi Aramco, though the incubator has received backing from several prominent oil companies over the years.
Today, the incubator employs 40 people—29 in Somerville and 11 in Houston—and hosts 140 clean-tech startups in Boston and another 75 in Houston.
New funding expands Greentown reach
While tenant startups pay rent, about two-thirds of Greentown’s budget comes from corporate partners who join as “terawatt partners” for close access to entrepreneurs and their cutting-edge technology.
Interim chief executive Kevin Dutt emphasized that the new funds aim to help Greentown reach climate-tech entrepreneurs beyond its two primary locations. “We’re constrained in our current business model,” Dutt said. “We have a very high success rate for our startups.
There’s a strong interest in expanding that beyond Somerville and Houston.”
The funding has also led to significant changes in Greentown’s boardroom, with several new members joining from Boston and Houston. The revised board includes cofounder Jason Hanna, and John Hitt, the MassCEC’s general counsel. Bobby Tudor, CEO of Houston investment firm Artemis Energy Partners, will chair the board, joined by David Baldwin of SCF Partners, Bill Aulet of MIT, Georgina Campbell Flatter from TomorrowNow, Juan Carlos Morales of Surfside Capital Advisors, and former Lightbridge CEO Pam Reeve.
Dutt, who plans to step down in January, expressed optimism about the recapitalization. “To me, this is really about a reaffirmation of the strength and success of the organization,” Dutt said. “Our partners are willing to step up and continue to support it in a big way.”
