The Los Angeles Cleantech Incubator (LACI) was founded as an economic development initiative by the city of Los Angeles in 2011 to enhance startups looking to create a green economy. Based in downtown, its three focus areas include accelerating transportation electrification, clean energy and sustainable cities.
Matt Petersen joined LACI in 2013 after a career rooted in sustainability and green energy. He previously served as the city’s first chief sustainability officer and ran Global Green USA, which works to integrate green initiatives into affordable housing. Under Petersen’s leadership, LACI has facilitated over $1 billion in funding to over 500 portfolio companies, generated $344 million in revenue and created more than 2,500 jobs throughout the Los Angeles region.
What drew you into impact investing and how does LACI’s Impact Fund align with your interests?
The need to scale companies and their technologies to help solve the climate crisis while creating economic opportunity for entrepreneurs, their workers and the community led me to impact investing.
What are your investment criteria/requirements for the companies you finance?
For one, startups that come to us for financing must have a lead investor first. In many cases, we are very familiar with these startups by the time they seek financing, having supported them via our Incubation Program. It is very rewarding to see startups that we incubate come back to us ready to discuss financing and scale their solutions.
How does your firm strike the balance between profitability and social good?
We focus on companies that have a path to profitability, but needless to say social and environmental good is at the core of every decision we make at LACI. We believe in doing good while doing well, and our support for underrepresented founders, job creation opportunities and environmental stewardship reflects that commitment.
Walk me through the genesis of the LACI’s LA Resilient Rebuilding Cup and what that initiative aims to accomplish.
At LACI, we believe startup innovation has an important role to play in helping our communities recover from the Palisades and Eaton fires. We launched the LA Resilient Rebuilding Cup to invite the critical innovations that can help our region rebuild more quickly, reduce the risk of future fires and other climate shocks, and restore neighborhoods sustainably.
The Cup will culminate with a pitch competition on July 10, with cash prizes and funding for piloting opportunities. We hope that through this innovation competition, we can bring to the forefront the technologies that will help our region rise from the ashes and present a model of resilience and sustainability by the time of the 2028 Olympic and Paralympic Games, and long after.
Can you provide an example of one of LACI’s portfolio companies that embodies your organization’s mission? How has the company grown and/or evolved under your ownership?
That’s a tough one because there are so many inspiring companies in our portfolio, which recently reached 500 companies. One example that comes to mind is Repurpose, a women-led company that creates compostable tableware, dishware and other sustainable products that eliminate the need for plastic. We invested in Repurpose through the LACI Impact Fund years ago, and today they are a staple in many national retailers (including) Whole Foods and Costco.
What does the future of impact investing look like to you?
We need to see more patient capital pursuing good returns while helping build great companies solving the climate crisis, creating good jobs and bringing the benefits of the green economy to every neighborhood.
