This report analyzes the latest trends in climate tech investment, highlighting its growth in early 2024, subsequent slowdown, and shifts in sector focus. It discusses the increasing role of corporate investments and dedicated climate tech funds, as well as the growing interest from generalist deep tech funds.
Climate tech deals grew 37.9% in Q1. The May 2024 report says infrastructure, industry and renewable battery deals were hot commodities, and median pre-money valuations were rising across the board. The report also notes that in the 12 months through September 2024, capital flows and transaction volume continued to trend downwards, dropping below levels recorded in 2019.
The report also noted that the distribution of climate tech investment across sectors has changed and that during the first three quarters of 2024, energy-related startups took in a slightly greater share of climate tech funding—nearly 35%—than they did in 2023 (30%). 'Climate tech is one of the technology sectors that attracts the highest proportion of corporate (CVC) investments,' he said. 'There is also a very active ecosystem of dedicated climate tech funds, especially at the Seed and Series A stages,' said Noronha. 'Today, a significant number of climate tech funds attract corporate/strategic LPs because the collaboration can bring concrete value for the portfolio companies in terms of accelerating their go-to-market or scaling up their real-world deployments and help de-risk such early-stage investment for the CVCs who can tap into deeper domain knowledge.' Noronha believes there is also an increasing proportion of 'generalist' deep tech funds placing bets on climate tech startups. He says this is because the total addressable market is large, and climate use cases enable diversification of the market applications for semiconductors, AI models, or materials startups
Climate Tech Investment Trends Venture Capital Corporate Investments Renewable Energy
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EToro Analyst Predicts 2025 Investment Trends: Trump Return, Musk Factor, and Global Growth OutlookJean-Paul van Oudheusden, a market analyst at eToro, outlines his investment outlook for 2025, focusing on the potential impacts of Donald Trump's return to the White House, Elon Musk's growing influence, and the continued global economic trends.
Read more »
Tech Industry's AI Investment Hype: Reality and AmbitionsAlex Heath, deputy editor at The Verge, discusses the ambitious and costly gamble the tech industry is making with artificial intelligence. Despite the billions poured into AI companies through investments, the widespread adoption and spending by big companies across various industries on AI products is not yet taking place.
Read more »
Propel Software Unveils Key Business and Tech Trends for 2025The report spotlights AI’s evolution and shifts in global manufacturing.
Read more »
Which E-Commerce, Tech Trends to Watch for 2025Explore key e-commerce trends for 2025, including AI's role, evolving consumer expectations, and strategic investments for retailers.
Read more »
Indonesia's protectionist policies aimed at attracting tech investment may backfire, economists warn“I call it pseudo-protectionism,” said Bhima Yudhistira, executive director of the Center of Economic and Law Studies.
Read more »
China Warns of Disrupted Supply Chains Over US Tech Investment BillChina warns of supply chain disruptions if the US Congress passes a bill restricting American technology investments in China. The bill targets national security concerns and includes a study on vulnerabilities in US networking devices.
Read more »