Boundary Holding founder Rajat Khare highlights a major shift in the venture capital landscape: clean technology (clean-tech) is rapidly emerging as a leading area of investment in the U.S. As governments and investors double down on sustainability, Khare sees both enormous potential and real challenges in this sector.
U.S. Clean-Tech Takes Center Stage
Historically, Europe has been the main hotspot for climate-focused and green-tech investments. But now, the United States is stepping into the spotlight. According to Khare, policies like the Inflation Reduction Act (IRA) have played a pivotal role in driving this momentum. By dedicating around $370 billion to climate and clean energy initiatives, the U.S. is making clean-tech increasingly attractive for venture capital.
This surge in policy support is fueling investment in areas such as electric vehicles, battery production, and green hydrogen infrastructure — initiatives that promise both environmental impact and long-term financial returns.
Challenges on the Road Ahead
While the clean-tech sector is booming, it’s not without obstacles. Khare warns that investors must tread carefully, especially in a market that still poses significant risks.
Regulatory Complexity: The U.S. regulatory environment around clean energy can be complicated, creating barriers for startups to scale.
Economic and Geopolitical Risk: Clean-tech is a global play, and investments are vulnerable to shifts in trade, supply chains, and macroeconomic conditions.
Capital Intensity: Many clean-tech ventures require large amounts of capital early on. For early-stage startups, raising enough money to commercialize their ideas remains a big challenge.
Why Khare Still Believes in Clean-Tech
Despite these risks, Khare remains highly optimistic. He argues that the U.S. clean energy ecosystem has shown remarkable resilience — even during global crises like the COVID-19 pandemic. Thanks to government incentives, the sector continues to attract investors who are interested not only in profit but also in meaningful environmental impact.
According to him, investors should maintain a long-term, disciplined approach. Clean-tech isn’t a quick play — the real opportunities lie in backing innovations that can scale sustainably and build infrastructure for a greener future.
A Broader Vision: Investing with Purpose
For Khare and Boundary Holding, clean-tech is more than just a financial bet — it’s a mission-driven strategy. He believes that innovation and sustainability can go hand-in-hand, particularly in fields like renewable energy, storage, and green manufacturing.
He encourages other investors to adopt a similar mindset: evaluate clean-tech not just as a trend, but as a fundamental building block for the 21st-century economy.