Climate change presents a fundamental threat to our society, the global economy and human health. And while policy makers have a significant role to play in achieving the net zero targets that have been set to limit global warming, the private sector also has an important part to play in protecting the long term future of our natural world.
This responsibility for tackling climate change is being assumed by all types of businesses from legacy institutions to innovative startups, with many of these early stage companies forming part of the exciting “ClimateTech” sector.
ClimateTech refers to technologies that enable decarbonisation of the global economy. Trailblazing companies operating in this space are developing products and services to mitigate against and adapt to climate change by reducing future emissions, removing existing carbon from the atmosphere or by increasing our resilience against the impacts of a changing climate.
Over the last few years the ClimateTech vertical has exploded and, according to PwC, 25% of all venture funding globally in 2022 went into the sector. And despite a downturn in investment last year (mirroring what was seen across the startup funding landscape as a whole) Europe bucked the overall trend. According to Atomico, investment in the Carbon and Energy sectors overtook SaaS and accounted for 27% of all venture capital in Europe, becoming the continent’s most popular investment vertical in 2023.
Over the last few years, these broader investment trends have been reflected on Seedrs where ClimateTech has been one of the most popular sectors on the platform, increasing 156% in 2022. And according to our 2023 Investor Survey, ClimateTech has emerged as the sector of biggest interest to our investors, replacing FinTech.
This Seedrs mini-documentary entitled “The ClimateTech Boom” explores ClimateTech, the opportunities and challenges it faces and some of the pioneers who are defining the industry. We hope you find it practical and informative.
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