Even as the tech startup funding landscape emerges dark over the years, with some potential bright spots.Long-term climate goals for Europe and beyond are creating new opportunities for cleantech Developer and investors.
Activity may have declined recently, but fundraising We’ve made a real leap in the last few years. Recovering from our dependence on fossil fuels requires a fundamental change in the current paradigm. And a lot of money is being invested in this problem.
As reported by bloombergThe total global investment in the energy transition, both public and private, will reach $1.1 trillion by 2022, according to the OECD. That’s up from just $214 billion a decade ago, and that number has skyrocketed since 2020.
Specifically, total VC funding in climate-related tech last year reached $70.1 billion, an 89% increase compared to 2021.
The United States leads the global climate tech VC investment race with $26.8 billion, while Europe ranks second with $17.9 billion, up more than 100% from the previous year.
Most of Europe’s investment in climate technology is local
a report According to a study compiled by Dealroom and Talis Capital late last year, Europe’s climate technology ecosystem will be worth over $100 billion in 2021, more than doubling from 2020. The majority (70%) of European climate technology investment has so far come from local investors.
“What we find interesting about climate tech companies is that in contrast to the great venture stories of the last decade like Uber and Airbnb, they haven’t created new markets.” Said Matus Maar, co-founder and managing partner of Talis, said: “Instead, they are approaching some of the biggest existing markets and reinventing them with sustainable alternatives.”
Energy storage tops list of cleantech investors
On the other hand, it is not a matter of simply pouring money into existing clean technology. In the past, venture capitalists may have chosen to primarily fund start-ups such as solar and EVs. As these technologies mature, trends are shifting to other innovations such as decarbonizing food production. carbon capture and isolation. but, energy storage technology, including batterieslooking at the highest level of investment.
According to Bloomberg, funding for mobility still ranks high on the list of total global investments ($11.4 billion), but storage ($18.4 billion) tops it, followed by food and agriculture ($9.5 billion). ) is closely followed. Other key sectors are Renewable Energy ($8B), Circular Economy ($6.2B), Carbon Markets ($5.4B), Built Environment ($4.9B), Resources ($4.7B), Data & Finance (billion dollars) and the biosphere (0.6 dollars). bn).
Looking at the top five deals, mobility remains the fifth sector (334), followed by storage (559), food and agriculture (537), circular economy (508) and renewable energy (417). bottom.
For early-stage investors, “solar panels and electric cars are 2011 right there,” in the words of the Bloomberg report author who laid out the numbers.
But even the climate technology sector is not immune to the downward trend in investment, according to the latest data. VC and private equity flows fell 12.8% in the first quarter compared to the moving average in the fourth quarter.
https://thenextweb.com/news/vc-investment-60-billion-climate-tech-last-year-where VCs invested €60 billion in climate technology last year.