Climate tech startups raise $8.1 billion in Q1

"Climate tech startups raised $8.1 billion in the first quarter, near record amounts of money that suggest 2023’s quiet close might have been more of a blip than the sign of a protracted downturn. In the next 25 years, the world will need to invest $230 trillion to reach net-zero carbon emissions, according to McKinsey." ClimateTech startups, like Lilac Solutions and Ascend Elements, are going against the grain of the larger startup ecosystem (not as much as AI). With tons of money raised, startups are still looking at how to GTM. Today, another EV charging startup announced they will cease operations. We need to continue to work to get these Climate startups through the "Valley of Death" unscathed and to commercial use.

WOW! In Q1, 2024 these early stage climate venture funds closed an amazing amount of deals: Climate Capital closed 94 deals! Nick van Osdol, Beck Kloss, Micah Kotch, Alexandra Stieglitz Lowercarbon Capital closed 70 deals! Clea Kolster, PhD, Crystal Sacca SOSV closed 59 deals (without their HAX program)! Bill Liao, Stefan Dienstag, Sean O'Sullivan However, this was an exceptional bold move by some of the funds with total deal count was down 20% this quarter to 244. Overall climate tech startups raised $8.1 billion in the first quarter of 2024. Now... let me take you down to planet earth! are you sitting? All those deals are skewed by some really large rounds of hardware companies such as H2 Green Steel and Lilac Solutions. Those later stage rounds by venture funds or debt finance, is a process that takes longer than a quarter. Sometimes it might take 9-12 months for a startup to close such deals, so all of this did not happen in a quarter. The other great point that Tim De Chant of TechCrunch made in the article is the need for climate startups to get to significant commercial traction that will suffice the risk profile of growth stage funders, and that takes some good years and large capital. I'm extremely happy to see the volume of early stage funding, but we should understand that the momentum we see of large scale and growth stage deals would drop between the next quarters - let's wait and see. What we do need to see is more Exits! more IPOs, more corporates buying climate companies if we want those to feed the climate venture machine. #venturecapital #climatetech #sustainability #funding #investments #2024 #finance #startups #earlystage #growthcapital https://lnkd.in/eH5RFU-z

Cleantech investment remains resilient. #Cleantech startups raised $8.1 billion in the first quarter of 2024 according to a report from Pitchbook. While the number of deals was down slightly quarter-over-quarter, the value was up nearly 400%, according to the report. A closer look into the $8.1 billion raised in the first quarter reveals that materials sparked investor interest, including green steel and battery materials and minerals. Top deals were H2 Green Steel, raising $125 million and in equity and a large amount of debt to fund a new plant in Sweden. H2 Green Steel follows Northvolt, a Swedish battery manufacturer, in securing investments to build large-scale production facilities in the country. Battery recycler Ascend Elements added another $162 million to its Series D, bringing the total to $704 million for the round. The company, a unicorn worth $1.6 billion post-money, operates in recyclable battery materials. Sodium-ion battery manufacturer, Natron attracted $189 million in Series B and Lilac Solutions who can extract lithium from salty water closed a $145 million Series C. #cleantech #climatefinance Find out more: https://lnkd.in/eEGrvwh4

My recent publication in the Canadian Environmental Journal highlights the rise of Green Unicorns, startups striving to address climate challenges. According to Rockstart, there are approximately 45,000 such companies globally, with a combined enterprise value of almost $2.5 trillion estimated by 2023. This represents a 45-fold increase in just 10 years, confirming investor confidence in the potential of climate tech startups. Check out the article to learn more about Canada's potential to become a cleantech leader. https://lnkd.in/gV5m3SyE #canada #unicorns #cleantech #climatechange

In 2023, we saw a drop in the VC $ invested in climate tech. While nothing compared to the decline in the rest of tech (excl. Gen-AI), it was troubling to see such as a headline! Many climate investors have been holding back for fear of worse times to come. However, circular economy, industrial, and energy investments were somewhat flat in 2023, compared to a record-breaking 2022 (according to sightline data). This Q1 data (also just a single data point) is highly encouraging and not surprising. The industry has seen series B investments returning this year, and many earlier-stage deals continue to happen. Thanks, Tim De Chant, for writing this! Let's invest in saving the world. #climatetech #startups #trends https://lnkd.in/gdJKTe-e

6 takeaway from a climate-tech boom: The current surge of climate-tech startups holds promise for addressing climate change, but it's crucial to heed lessons from past failures. As billions pour into these ventures, optimism abounds, but caution is warranted. Reflecting on the cleantech 1.0 era, several takeaways emerge. Lesson #1 underscores the importance of demand; without buyers, even innovative solutions falter. Lesson #2 warns against hubris, urging investors to understand the industries they enter. Lesson #3 highlights the challenges of scaling up molecule-based businesses, emphasizing the need for cautious growth. Lesson #4, epitomized by Solyndra's demise, stresses the importance of market viability and manufacturing sensibility. Lesson #5 reminds us of the influence of politics, which can swiftly alter the landscape for cleantech investments. Finally, Lesson #6 underscores the necessity for economic viability in sustaining climate-tech startups. While the enthusiasm is palpable, success hinges on practicality, adaptability, and economic feasibility. The climate-tech boom holds promise, but only by integrating these lessons can it truly flourish. Thanks David Rotman for this article in MIT Technology Review https://lnkd.in/gxM6Wrup #startups #startup #newventure #venturecapital #tech #finance #business #businesses

🚀💡 Accelerating Climate Innovation 💡🚀 Securing funding shouldn't hinder innovation, especially in the race to combat climate change. Yet, traditional grant processes often slow down startups' momentum. But there's a game-changer on the scene: Grant Advance Financing. ✅ Closing the Financing Gap: Startups now have a lifeline to scale rapidly and innovate quicker, bridging the divide between established companies and ambitious ventures. 🌱 Catalyzing Climate Solutions: Billions in grant funding are up for grabs to drive climate action. However, cumbersome processes delay progress. That's where grant advances come in, offering upfront financing to startups, like Enduring Planet, paving the way for faster project execution. 🔥 Key Advantages: Speed: Upfront funding accelerates project timelines, attracting more investment for faster scaling. Liquidity: Effective management of cash flow across the business. Non-Dilution: Equity-free funding preserves founders' control. 💼 Applying is Easy: Less than 10 minutes to apply, with funding in under 30 days, empowering startups to seize opportunities without delay. ⚠️ Considerations: Grant advances operate as loans, with flexible payback options. While interest rates apply, they offer non-collateralized financing, mitigating risk for startups. 🌍 Driving Climate Innovation: Startups like Sparkz are already leveraging grant advances to meet critical milestones in climate tech, paving the way for a greener future. 💡 Closing Thoughts: By democratizing access to funding, we empower all innovators to drive meaningful change. Let's harness the power of grant advance financing to accelerate the journey towards a sustainable tomorrow. 🌿💼 #ClimateInnovation #StartupFunding #Sustainability #GreenTech https://lnkd.in/eriUsSXu

Climate tech startups raised $8.1 billion during Q1 2024, nearly a record! A new report from PitchBook, shows that early-stage climate tech remains an attractive sector for venture capital. While the number of deals was down slightly quarter-over-quarter, the value was up nearly 400%. Of the $8.1 billion invested during Q1, investors focused most of their attention on batteries/energy storage, materials, and clean energy minerals. Three firms closed the most deals: Climate Capital with 94; Lowercarbon Capital completed 70; and SOSV closed 59 deals.

#Climate technologies are vital for achieving a #NetZero future, with the potential to reduce 90% of global man-made emissions by 2050. According to McKinsey, successfully transitioning to this goal will require the emergence of 1,000 unicorns (start-ups valued at $1 billion+) and 300 decacorns (valued at $10 billion+) in the climate tech sector by 2030. This presents a significant challenge, especially given the complexities of fundraising and scaling in this field. So, how can climate tech companies secure funding and scale rapidly? The Climate Brick, an open-source manual for #entrepreneurs and investors, aims to shed light on this crucial journey. #ClimateTech #Funding #Sustainability https://lnkd.in/gEN8p_ef

Foak is a term we start hearing more often these days, means "First of a kind”.  It signifies a pioneering or groundbreaking innovation in the field, something that's unique or unprecedented in its approach or impact. These innovations often represent significant advancements in addressing challenges. Especially on climate tech we hear this term a lot. There are many startups in this field trying to solve problems, and here’s a list of climate tech startups in Europe that Bill Gates invested in. It’s a very diverse and interesting list, what do you think the strategy here? How many of these startups have you heard before? #climatetech #startups #investment #foak https://lnkd.in/d_UPNAXc..