By Andrey Dashkov, analyst, Casey Research

Andrey Dashkov

Everybody is looking for the next “unicorn.”

That’s a small company that grows into a billion-dollar valuation. When it happens, early investors make life-changing returns.

It’s not uncommon to see gains like 5x, 10x, or even 100x when a tiny company becomes a “unicorn.”

What if I told you that there’s an area with not one… not a hundred… but a thousand “unicorns” likely to emerge?

And don’t take it from me… some of the biggest firms on Wall Street are also expecting this to happen.

It’s like the early days of the internet…

But possibly bigger.

I’ll tell you about this trillion-dollar trend in a moment… and show you how to profit.

BlackRock CEO Is Big on Energy Transition

BlackRock is one of the world’s biggest asset managers. Earlier this year, it reached $10 trillion in assets under management.

People started calling Larry Fink, BlackRock’s CEO, the “king of Wall Street.”

And he is big on new technologies… especially those in the “green transition” and “environmental, social, and governance” (ESG) trends that I cover.

At the Middle East Green Initiative Summit in Saudi Arabia, Fink said:

It is my belief that the next 1,000 unicorns – companies that have a market valuation over a billion dollars – won’t be a search engine, won’t be a media company, they’ll be businesses developing green hydrogen, green agriculture, green steel, and green cement.

Fink’s prediction didn’t come out of nowhere. Investment is pouring into technologies that have to do with sustainability.

Capital Is Flowing Into ESG-Friendly Ventures

Battery storage is one of the hottest areas in sustainable investing.

In 2021, venture capital investment in battery storage companies rose to $8.8 billion. That’s up 500% from 2020.

Smart grid companies drew $2 billion in corporate funding. Energy efficiency companies brought $465 million.

Meanwhile, energy costs are going down. So the market for battery storage and other clean energy solutions is growing.

Total investment in the “green transition” sector has gone up, too. In 2021, over $755 billion went into “green transition” companies.

That’s 27% higher than in 2020.

And some companies are already attracting hundreds of millions of dollars.

Like Arcadia, a start-up that connects renters and residents of multiunit buildings to community solar projects. Last year, it raised $100 million with top venture capital company Tiger Global.

The list of climate tech “unicorns” is already getting longer. There are about 47 total… and 28 start-ups earned the status in 2021 alone.

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Image: HolonIQ

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This is the beginning of the trillion-dollar trend I mentioned in the beginning. The number of unicorns in “clean tech” is still below a thousand… but this area is growing fast.

How to Get Exposure to “Green Unicorns”

Some of the smaller companies in green energy are public. Which means investors could buy their shares already.

Some of them are private, making it harder for regular investors to access shares.

But publicly traded investment companies could be an option. BlackRock, for example, is a public company. Its shares trade on the New York Stock Exchange under the symbol BLK.

It’s a giant investment house… but it puts money into a lot of other industries besides clean energy.

An ETF such as iShares ESG Aware MSCI USA Small-Cap ETF (ESML), on the other hand, only focuses on small-cap ESG-friendly companies. Some of them have a market capitalization below $1 billion.

This ETF could be one of the easiest ways to get exposure to the clean technology trend.

Good investing,

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Andrey Dashkov
Analyst, Casey Research

Casey Research Is Hiring… Could You Be the One for the Job?

Casey Research is searching for a highly experienced, connected, credible senior research analyst. What makes you tick? All things electric vehicles.

You believe in the technology… you believe it will change the layout of the world… and you understand the enormous investment opportunities in the EV sector.

You also have big ideas about what’s ahead for the electric vehicle industry… and which niche areas of the market are set to boom based on the demand for metals, tech, charging stations, safety, you name it.

To put it simply, if you have smart ideas… you have a vision for the EV market… and you can demonstrate how investors can make money from it, we want to talk with you.

The outcome: potentially partner with the Casey Research team to help lead our EV research efforts.

Responsibilities

  • Immerse yourself in everything related to electric vehicles

  • Be the go-to expert for EV investment analysis and commentary

  • Research and analyze trends in the EV industry

  • Augment existing research on EV-related companies

  • Help develop investment themes and ideas

  • Build on existing industry contacts, travel to trade shows, industry events, and conferences

Qualifications

  • Ideally several years in the EV industry, working for a related company, in consulting, or private equity

  • Bachelor’s degree a plus but not required for a real industry expert

  • Demonstrable industry connections/network

  • Deep understanding of EV supply chain

  • Strong analytical skills

  • Can handle multiple, complex issues, and prioritize in demanding situations

  • Sedentary work that primarily involves sitting/standing

  • Visual acuity for reading and using the computer

  • Ability to hear

  • Ability to freely move about the office

  • Ability to use the phone/computer/keyboard/mouse/general office equipment for extended periods of time

  • Ability to communicate well with others in order to exchange information

  • Fluency in the English language

If you think this sounds like you, send a message to [email protected] with the subject line: Your Go-To EV Expert.

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