Pitchbook are reporting that $14B in new climate tech funds have been raised this year alone. This matches the feeling of activity from interest through to investment that we are seeing at all levels, in all sectors and in all geographies.

This is a good article for climate tech founders to understand the mindset, challenges and momentum of this space.

Highlights

  • $14b raised this year is as much as the last 5 years combined.
  • Stages:¬†"From seed- to growth-stage investors, we need a full ecosystem of climate tech funds," said Greg Smithies, a partner with Fifth Wall
  • Sectors:¬†"Broadly, climate tech includes solutions aimed at decarbonizing the planet. Sprawled across sectors including transportation, real estate and agriculture, the industry encompasses startups focused on renewable power generation, electric vehicles, cellular agriculture and forestry management, among other areas."
  • In 1977, one solar energy watt cost around $81, according to Our World in Data. That price plunged to 38 cents by 2019.
  • "Even if you do not believe in climate change, you cannot cannot dispute the economic argument for deploying renewables," Speirs said.
  • Question raised about impact vs returns tension
  • General Atlantic raising $5B¬†Fund

Food for Thought

  • Is this going to lead to high valuations and bad companies being funded which can hurt the industry and also the environment?¬†
  • Is there the depth of understanding of this ecosystem to go with the capital?¬†
  • Is this evenly spread across sub-sectors, geographies, minorities?¬†

Full article here;

Pitchbook post on Climate Tech

Thanks to Michael Molitor for sharing the link.

Photo by Noah Buscher on Unsplash

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Posted 
Jul 22, 2021
 in 
Industry
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