Fundraising for Engineering & Electronics Companies

By Madison Woo

Marketing Specialist, Investments

The scientist discovers a new type of material or energy and the engineer discovers a new use for it.” - Gordon Lindsay Glegg

How are Engineering & Electronics Companies Raising Capital?

Companies within engineering and electronics have multiple methods of raising capital via private equity to fund innovation and expansion. One significant method involves selling parts of engineering and electronics companies to private investors through private placements and Regulation D SEC fundraising. Through private placements, companies gain direct access to capital and increased investor support. With Regulation D SEC fundraising, companies can raise funds without having to disclose all details of their efforts publicly to the SEC. Another way to raise capital without involving investors is by equity crowdfunding, where companies receive donations from individuals interested in technology or small-scale investors. The sector also leverages strategic investors, such as large corporations, to secure partnerships that align with their product development goals. Institutional investors, such as large investment firms or pension funds, invest in engineering and electronics companies to generate client returns. This, in turn, helps companies raise capital as their stock is purchased and valued higher in the market.

“We are continually faced by great opportunities brilliantly disguised as insoluble problems.” - Lee Iacocca

ESG in the Engineering & Electronics Industry

Engineering and electronics companies are increasingly adopting ESG practices to comply with investment policy mandates and attract sustainability-focused investors. A notable trend is the integration of energy-efficient technologies into manufacturing processes. For example, companies are upgrading to machinery that uses less energy and produces lower emissions, which aligns with environmental goals. Electronics firms are also improving transparency by implementing better reporting standards. By providing detailed disclosures about their environmental impact, labor practices, and governance structures, these companies build trust with investors. Another key strategy is designing products that promote sustainability. For example, some engineering companies are developing recyclable electronic components, while others are focusing on renewable energy technologies such as solar inverters and wind turbine parts. These efforts not only meet ESG requirements but also position companies as leaders in sustainable innovation.

Several companies in the engineering and electronics sector are setting benchmarks in Environmental Social Governance (ESG) initiatives. Schneider Electric focuses on creating sustainable energy management and automation solutions. By producing energy-efficient systems and software, Schneider Electric helps industrial and residential customers reduce power consumption, promoting both energy savings and environmental responsibility. Another standout company is Tesla, which is a leader in renewable energy and sustainability. Beyond its innovative electric vehicles, Tesla is transforming energy storage with its solar panels and Powerwall products. These technologies reduce reliance on fossil fuels and contribute to the transition toward a more sustainable energy grid. Both companies exemplify how the engineering and electronics industry is evolving to align with ESG goals by driving innovation, minimizing environmental impact, and ensuring long-term value for investors and society.

“The engineer has been, and is, a maker of history.” - James Kip

ESG Investment Opportunities in the Engineering & Electronics Sector

Several companies in the engineering and electronics sector are setting benchmarks in Environmental Social Governance (ESG) initiatives. Schneider Electric focuses on creating sustainable energy management and automation solutions. By producing energy-efficient systems and software, Schneider Electric helps industrial and residential customers reduce power consumption, promoting both energy savings and environmental responsibility. Another standout company is Tesla, which is a leader in renewable energy and sustainability. Beyond its innovative electric vehicles, Tesla is transforming energy storage with its solar panels and Powerwall products. These technologies reduce reliance on fossil fuels and contribute to the transition toward a more sustainable energy grid. Both companies exemplify how the engineering and electronics industry is evolving to align with ESG goals by driving innovation, minimizing environmental impact, and ensuring long-term value for investors and society.