Venture capital funding for climate tech companies experienced a noticeable dip of approximately 40% during the first half of 2023. This drop comes as venture capital funding, in general, faces challenges, with the wider market declining 53% YoY in Q1. Climate tech’s 40% decline, while somewhat insulated, is not immune to these macroeconomic realities. Several factors contribute to this trend, including growth investors having already made significant bets in 2021 and 2022, early-stage funding seeing an uptick, and the influence of strategic corporate investors and government incentives. Despite the funding slump, the overall climate tech market remains dynamic, with notable variations in different verticals and stages.
For a deeper dive into the specifics and insights into the climate tech venture funding landscape, please refer to the full article.