State of Climate Tech 2023 Net Zero Insights

STATE OF
CLIMATE TECH
2023
A Net Zero Insights' yearly analysis on global funding
and deal activity in the private market venture space.
STATE OF CLIMATE TECH '23 p.02
KEY
2023
IN REVIEW TAKEAWAYS
In 2023, the two-year funding boom concludes with a
HARD STOP TO CLIMATE significant 30% YoY drop. Despite its resilience in 2022,
TECH FUNDING BONANZA Climate Tech succumbs to the broader market downturns.
As equity took the strongest hit (-40% YoY), resourceful

THE STEADY RISE OF entrepreneurs turn their attention to public funding
NON-DILUTIVE FUNDING opportunities and alternatives to VC.
The path to a net-zero economy demands readily

THE YEAR OF MEGA+GIGA deployable physical solutions and later-stage investors
INFRASTRUCTURE DEALS? and lenders seem increasingly prepared to support it.
KEY
2023
IN REVIEW TAKEAWAYS
First-of-a-Kind (FOAK) projects gained prominence last
WHAT ARE FOAKS AND year but still pose challenges in definition and present
WHY THEY MATTER funding complexities.
In 2023, funding flowed towards adoption-focused

REACHING MARKET innovations and later stages, indicating the increasing
MATURITY FOR ADOPTION maturity of the market.
Software has an important role to play, but the transition

TRENDS ON DIGITAL AND must rely on physical solutions. We analyse challenges
PHYSICAL SOLUTIONS and opportunities linked to investors' preferences.
TABLE OF CONTENT
OVERVIEW P.10
STAKEHOLDERS P.37
INNOVATORS P.38
Overview P.40
Pre-seed and seed P.66
Early stage P.79
Later stage P.91
Exits P.103
CORPORATIONS P.110
Funding P.112
M&A P.117
INVESTORS P.128
Overview P.130
Pre-seed and seed P.147
Early stage P.152
Later stage P.159
ENVIRONMENTAL OBJECTIVES P.164
MARKET
INTELLIGENCE FOR
CLIMATE TECH
Net Zero Insights is the leading data and research
platform for Climate Tech.
The Net0 Platform provides access to thousands of

startups/SMEs, deals, and investors, allowing users to
spot new innovations, trends, and deals in the
rapidly evolving world of climate technology.
Investors, corporates, researchers and business

developers use our platform to identify new startups
and keep track of emerging trends and
Talk to sales
opportunities.
WHAT IS INCLUDED IN OUR DATA

CLIMATE TECH DATA? GLOSSARY
The data used for this report either refer to global venture funding and
deal activity in private Climate Tech ventures, covering equity, debt, Environmental objectives
grants, and other financial instruments, or liquidity events or exits such
as M&A, IPOs, and SPAC while excluding post-exit financing. Challenge areas
Sourced from public announcements, our extensive network of partner Breakthrough and adoption
accelerators and investors, conferences as well as self-reported data,
this information undergoes rigorous daily curation on the Net0 Platform
Physical and digital
by our dedicated analysts.
By meticulously reviewing hundreds of innovations daily, we take pride

in developing an ever-expanding methodology for granular and
consistent classification of climate solutions. You can find our definition
of Climate Tech here.
BEYOND CLIMATE ENVIRONMENTAL

CHANGE MITIGATING OBJECTIVES
Conceptually aligned with the framework of the EU taxonomy for

sustainable activities, Net Zero Insights refers to “Climate Tech” as Climate change mitigation
encompassing any technology or innovation contributing to at least
one of the six specified environmental objectives.
Climate change adaptation
Our analysts classify each organisation based on their alignment with

these environmental objectives, encompassing a comprehensive Sustainable use and protection of water
range from climate change adaptation and pollution prevention to and marine resources
biodiversity and ecosystem protection, and the transition to a circular
economy. Transition to a circular economy
It’s important to note that a single organisation may be categorised Pollution prevention and control
under multiple environmental objectives.
Protection and restoration of biodiversity

& ecosystem
KEY AREAS TO ADDRESS CHALLENGE

CLIMATE CHANGE AREAS
Centred on identifying the most pressing thematic trends in climate Energy

tech, Net Zero Insights developed a high-level framework to classify
each innovation according to the main climate change challenge Industry
areas its technology or innovation aims to address.
Transport
Our specialised analysts systematically analyse and categorise Food and agriculture
organisations based on the specific areas their innovations address.
Circular economy
It's important to note that an organisation can make significant Built environment
contributions to more than one challenge area.
Natural environment
Emission control
GHG capture, removal and storage
Water
A NEW FRAMEWORK TO LOOK PRODUCT-

AT CLIMATE INNOVATION INNOVATION (PI)
FRAMEWORK
For a thorough analysis, Net Zero Insights has now released a first
version of a framework to discern whether a company provides Breakthrough
breakthrough or adoption innovation and categorize the solution type
as digital or physical. For consistency in the analysis, our analysts
Adoption
manually categorised all deals exceeding $70 million announced in the
past five years.
Physical
Breakthrough innovation entails extensive research and development,
characterized by long-term efforts and innovations in the proof-of- Digital
concept phase. Conversely, adoption concentrates on implementing
and deploying established solutions, with a focus on improving metrics
like cost or efficiency.
The differentiation between the physical and digital aspects of an

innovation aims to determine if a business’ core offering
predominantly revolves around a digital or physical solution.
PART 1
OVERVIEW
STATE OF CLIMATE TECH '23 | OVERVIEW p.11
KEY
OVERVIEW TAKEAWAYS
80% of all venture funding raised in the last 5 years across
MARKET READINESS equity, debt and grants went to adoption. Of this, 70% went
FOR ADOPTION to physical solutions, with most of it being non-dilutive.
As the IPO window remains firmly closed and might stay

RECORD YEAR FOR that way for a while, acquisitions are gaining momentum,
ACQUISITIONS with corporate buyers becoming more actively involved.
73% of total 2023 funding is allocated towards climate

WHAT’S BEYOND change mitigation, followed by circular economy and
MITIGATION? climate change adaptation.
DESPITE A CHALLENGING YEAR, THE FUNDING LANDSCAPE HOLDS

PROMISE WITH GROWTH SURPASSING 2019 (2.75X) AND 2020 (2X).
Yearly global funding activity by financing type
Equity Debt Grant Other

$120B
$102.5B
$100B
$89.7B
$80B $72.9B
$60B
$40.0B
$40B
$27.5B
$20B
$0B
2019 2020 2021 2022 2023
Source: Net Zero Insights
The figures illustrate funding and deal activity in private climate tech ventures, covering equity, debt, grants, and other financial instruments, while excluding exits
and post-exit financing.
SIMILARLY, DEAL ACTIVITY IN CLIMATE TECH HAS WITNESSED AN

AVERAGE 25% YOY DECLINE ACROSS ALL FINANCING TYPES.
Yearly global deal activity by financing type
Equity Debt Grant Other Total

6,000
5,129
4,978
5,000
4,127 4,010
4,000
3,247
2,917 3,006
3,000
2,472
1,926
2,000
1,488
1,268 1,207 1,102
889
1,000 979
599 387 300
152 205
0
2019 2020 2021 2022 2023
FUNDING SLOWS GLOBALLY, EXCEPT FOR ASIA (+19% YOY).

EUROPE SLIGHTLY MORE RESILIENT THAN NORTH AMERICA.
Global funding and deals by continent
North America Europe Africa Asia South America Oceania Deals

$120B 5,129
4,978
$102.5B
$100B 4,127
4,010
$89.7B
$80B $72.9B
2,917
$60B
$40.0B
$40B
$27.5B
$20B
$0B
2019 2020 2021 2022 2023
THE FUNDING LANDSCAPE IS PRIMARILY SHAPED BY COMPANIES

DRIVING THE ADOPTION OF PHYSICAL SOLUTIONS.
Last 5 years funding across PI framework
Digital
$8.9B
$8.9B
$75.8B
Breakthrough Adoption
$60.5B $192.1B
Physical
and post-exit financing. For more details about the PI framework methodology, please refer to the section at the beginning of the report.
FUNDING DECLINES ACROSS ALL CONTINENTS BUT ASIA, WITH

SOUTHERN HEMISPHERE SEEING THE MOST SIGNIFICANT DROPS.
2023 funding by continent
EUROPE
$25.1B
-27.0% YOY
EUROPE
$31.3B ASIA
-36.7% YOY $17.7B
+18.8% YOY
AFRICA
$479.0M
-46.8% YOY
OCEANIA
SOUTH AMERICA $950.1M
$359.5M -45.6% YOY
-63.4% YOY
FUNDING DIVERSITY ACROSS CONTINENTS GOES BEYOND

VOLUME; IT ALSO VARIES IN THE CAPITAL STACK COMPOSITION.
2023 funding by financing type and continent
EUROPE
NORTH
AMERICA ASIA
AFRICA
Equity
SOUTH
Debt AMERICA
Grant
Other OCEANIA
BREAKTHROUGH SOLUTIONS IN THE US SECURE OVER TWICE THE

FUNDING COMPARED TO EUROPE.
Last 5 years funding across product-innovation framework
United States Europe
Digital
Digital
$2.5B $25.4B
$4.7B $38.6B
$34.5B $82.6B $14.9B $61.9B

Physical
Physical
DEAL SIZE ACROSS THE FRAMEWORK DOWN YOY IN THE US, WITH
ONE EXCEPTION, WHILE IT INCREASED IN EUROPE.
Median deal amount across product-innovation framework
Digital
Digital
2023 2023
$3.7M 2023
$3.0M $2.6M 2023
$2.2M
2019
2019 $1.7M
$1.0M 2019 2019
$0.6M $0.9M
2023
2023 $2.5M
2023 $2.2M
$2.1M 2023
$2.0M
2019
2019 $1.1M 2019 2019
Physical
Physical
$0.7M $0.6M $0.6M
THOUGHT LEADER
SPOTLIGHT
Q: What are the challenges connected to the financing of breakthrough solutions? What capital
sources are needed for those companies to enhance their appeal to VCs?
Anne-Kathrin Hinze
Investment & Asset
A: Companies deploying breakthrough solutions are typically faced with significant capex needs Manager
and long runways to profitability. Especially financing a First-of-a-Kind (FOAK) facility is
connected to huge capital needs that can only be served with a mix of VC money and non-
dilutive sources, like public money or debt. Non-dilutive financing is crucial for those deals to Anne is an Investment Manager at EIT
become attractive for VCs and founders alike as valuations at this stage are still comparably low. InnoEnergy. EIT InnoEnergy is one of the world’s
What we’ve seen frequently in 2023 are asset-heavy companies in search for equity to largest early-stage investors in the field of
complement already secured grants – which of course is a major advantage for fundraising. sustainable energy and backs climate tech
Securing debt finance is extremely challenging for early-stage companies. It is not impossible innovations across a wide range of areas,
including energy storage, transport and
though, e.g. if substantial revenue is already secured via offtake agreements. In the end, we will mobility, renewables, and sustainable
need to see a capital mix of equity, grants and debt - with debt becoming ever more relevant buildings. As part of the investment team,
with growing maturity (and decreasing technology risk). Anne is responsible for InnoEnergy´s
investments in startups and scaleups in the
DACH region that provide technologies
required to achieve decarbonization goals.
THOUGHT LEADER
SPOTLIGHT
Q: Post-IRA, numerous European companies are now incentivized to deploy solutions in the US. Catalysing and accelerating the energy transition
What unique advantages does Europe offer that the US lacks? EIT InnoEnergy brings people and resources
together, catalysing and accelerating the energy
A: Thanks to the long-term stability of the EU's energy and climate policy and the large internal EU transition. New ideas, products and solutions that
market, the EU has a strong demand for climate tech products and solutions. The EU has make a real difference, and new businesses and
confirmed its climate ambition with a legally binding objective of climate neutrality by 2050 and people to deliver them to market.
taken significant steps towards reinforcing its industrial policy for climate technologies as part of
the European Green Deal. The EU will soon have an enhanced regulatory framework helping to Operating at the centre of the energy transition, we
accelerate climate technologies: through accelerated permitting, upgraded financial support, a build connections worldwide, bringing together
skills agenda and other measures. On top of that, Europe has a unique industrial core with many innovators and industry, entrepreneurs and
international leaders in their space, coupled with a very healthy and broad climate tech start-up investors, graduates and employers.
scene that fuels innovation. Those are and will remain important advantages.
SHARE OF FUNDING IN ENERGY STEADILY GROWING SINCE 2020,

NOW REPRESENTING 35% OF CLIMATE TECH FUNDING IN 2023.
Share of yearly global funding by climate change challenge area
Industry Water Natural environment Built environment Energy Emissions control, reporting & offsetting Transport
Circular economy GHG capture, removal & storage Food and agriculture
100% 10.9% 5.2%

1.8%
1.3% 12.4%
80% 13.5%
36.0% 24.1%
60% 3.1%
40% 0.8% 35.3%
23.6%
20%
4.8% 5.1% 1.3%
1.8% 1.1%
1.3%
0% 5.7% 10.3%
2019 2020 2021 2022 2023
and post-exit financing. An organisation can fall into multiple categories, potentially being counted more than once. For more details about the climate change
challenge areas methodology, please refer to the section at the beginning of the report.
CIRCULAR ECONOMY, WATER AND INDUSTRY ARE THE ONLY

CHALLENGE AREAS TO SEE POSITIVE YOY GROWTH.
2023 global funding by climate change challenge area YoY funding variations
Food and agriculture Circular economy

Emissions control +6.3%
$6.0B Food and agriculture
$2.1B
Natural environment
Industry
Industry
Water +4.9%
$12.0B
Emissions control, reporting and offsetting
Natural environment
$1.5B Industry +3.0%
Energy -6.8%
Energy Transport Built environment -8.0%

$40.9B $27.9B
Energy Transport
Transport -19.0%
Natural environment -21.4%

Water
$1.3B GHG capture
$2.1B Emissions control, reporting & offsetting -35.4%
Water
Circular GHG capture, removal and storage
economy
Circular economy
$14.3B GHG capture, removal & storage -51.8%

Built environment
Built environment
$5.9B
Food and agriculture -51.9%
ENERGY DOMINATES DEAL COUNT. GHG CAPTURE AND NATURAL

ENVIRONMENT STILL TO BE UNLOCKED BY DEBT FINANCERS?
2023 deals by financing type and challenge area
energy 778 88 362
industry 411 21 168
transport 453 68 115
food and 500 35 180

agriculture
circular economy 479 44 154
built environment 222 18 56
natural 121 1 39
environment
emissions control 226 10 38
GHG capture, removal and storage 101 2 45
Water 78 5 45
Equity Debt Grant
YoY funding variation

IN 2023, STARTUPS
EXPERIENCED A Pre-seed and seed Series A + B Series C+
PRONOUNCED
"VALLEY OF DEATH" energy -71.1% -23.5% 15.7%
industry 53.6% -22.7 35.6%
In 2023, the startup landscape experienced a -82.0% -41.8% 11.7%

transport
pronounced "Valley of Death," marked by a
notable deceleration in investment for Series A -27.2% -57.2% -50.3%
and B funding rounds across the challenge food and agriculture
areas.
3.8% -18.8% 20.0%
The constrained flow of capital during these circular economy
critical stages poses heightened challenges for
emerging ventures, casting shadows on the -35.3% -4.6% -7.5%
built environment
increasingly difficulty with financing early
development and validation phases of their 25.05% -2.0% -55.4%
solutions. natural environment
This slowdown in funding creates a more 12.3% -28.6% -44.9%

emissions control
daunting environment for early ventures,
emphasizing the question: how best can these
-12.6% -12.7% -71.8%
ventures become strategically resilient and find GHG Capture, removal and Storage
innovate funding sources and combinations to
ascend this valley? 9.7% 78.1% -18.5%
water
ARTIFICIAL INTELLIGENCE, ELECTRIC VEHICLES AND BATTERIES

ARE AMONG THE TOP SOLUTIONS FUNDED IN 2023.
Word clouds for buzzwords in 2023 deals
IN 2023, GLOBAL FUNDING IS INCREASINGLY CONCENTRATING

ON CLIMATE MITIGATION SOLUTIONS.
Share of global funding by environmental Share of global funding by environmental

objectives (Last 5 years) objectives (2023)
Water and marine resources

2.3%
Pollution prevention and control Water and marine resources
Water 3.1% 1.1%
Pollution prevention and control
1.5%
Water
Pollution
Pollution
Mitigation Circular
73.2% Mitigation Circular
economy
Mitigation Circular economy
78.2% economy
Mitigation Circular economy
16.7%
$16.1%
Adaptation
Adaptation Adaptation
Adaptation
Biodiversity
3.6% Biodiversity
2.1%
Biodiversity & ecosystems Biodiversity & ecosystems

1.1% 1.0%
The figures illustrate funding activity in private climate tech ventures, covering equity, debt, grants, and others while excluding exits and post-exit financing. An
organisation can fall into multiple categories, potentially being counted more than once. For more details about the environmental objectives methodology,
please refer to the section at the beginning of the report.
ALTHOUGH EQUITY RETAINS ITS DOMINANCE, THE SHARE OF

NON-EQUITY FUNDING REACHED A HISTORIC HIGH OF 34%.
Share of global funding

While equity continues to hold its sway, there's a
notable shift in 2023's funding tale—the share of
non-equity funding for climate tech reached a
historic high of 34%; 1.6x the share of 2022 and twice Dilutive Non-dilutive
that of 2021, when equity investment was relatively 100%
cheap and available.
17.5% 22.7% 33.6%
This trend signals a growing diversification in 80%

financing approaches within the climate tech
venture space.
60%
Furthermore, considering that debt funding took up
over 50% of this share, the numbers seem to tell a 40%
story of a growing maturity within the market.
20%
Nevertheless, the traditional equity-centric models
of venture financing are evolving to meet the needs 82.5% 78.3% 66.4%
of climate innovations. This will continue to be an 0%
area of focus moving into 2024. 2021 2022 2023
THE NUMBER OF DEALS IN 2023 DECLINED ACROSS ALL

FINANCING TYPES AND STAGES.
Deals by financing type

+560.6%
2,333
2,183 2,134 2,183
2,068
1,771
1,671 1,712
1,626
1,061
654
592
514
426
222
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Pre-seed and seed Early stage Later stage
US EQUITY DEALS DROPPED SHARPLY ACROSS ALL STAGES IN

2023, WHILE EUROPE HAD A LESS PRONOUNCED DECLINE.
2023 equity deals by stage

Pre-seed and seed Early Stage Later stage
+560.6%
1286
1194 1201 1215
1136
795 803 779

634
574
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
HIGHER SHARE OF GRANT FUNDING IN BREAKTHROUGH

SOLUTIONS, AND A HIGHER SHARE OF DEBT IN ADOPTION.
Share of last 5 years funding by financing type across PI framework

Digital
Grant Grant
Other 1.3% Other
3.1%
0.8% 3.0%
Debt Debt
4.0% 10.9%
Equity Equity
92.0% 84.8%
Grant Other Grant Other

9.2% 0.2% 3.2% 6.7%
Debt Debt
7.0% 17.3%
Equity
Physical
Equity 72.8%
83.6%
THOUGHT LEADER
SPOTLIGHT
Q: Which breakthrough technologies or advancements show promise in substantially reducing or

eliminating the green premium? Francesco Matteucci
Program Manager in Green
A: The green premium includes all additional costs that opting for a clean technology might Technologies
cause. It is paramount to accelerate the cleantech innovation journey, as it happened for
photovoltaics or wind power. At the European Innovation Council (EIC) we support deep-tech Francesco is an innovation manager with 20
entrepreneurs in their innovation journey and so we work with many promising cleantech years of experience spent as a researcher in
projects/companies. Among these ones, I think that carbon capture and utilization will be able to materials science, as a start upper and as a
reduce its green premium in the next few years thanks to the technological advancements both Corporate R&D Manager within the field of
technologies for renewable energy
in the capture and conversion technologies. Due to its recent promising pilot results, mid to long production and storage. Since October 2020
term energy storage technologies will not need any green premium in the next few years. he is the European Innovation Council (EIC)
Programme Manager for Advanced materials
for Energy & Environmental Sustainability.
Q: What specific policy changes or incentives over the past year have played a role in stimulating
private and strategic investments into climate tech?
Johannes Bünz
A: I would say that the Emission Trading system has and hopefully will even more stimulate hard- Assistant to the EIC
to-abate-industries investments in adopting climate tech solutions. At the EIC, we are supporting Programme Managers
innovators and entrepreneurs with our hands-on approach and by funding them through grants
Johannes holds degrees in Political Science
and equity (EIC Fund). with a focus on Latin American environment
issues. In October 2021, he joined the EIC as a
member of the in-house Energy &
Environmental team, supporting deep-tech
researchers in their innovation journey.
THOUGHT LEADER
SPOTLIGHT
The EIC Fund is a patient and crowding-in investor whose aim is to contemporary accelerate the The European Innovation Council (EIC) has been
innovation journey of EIC beneficiaries and de-risk other investors so stimulating private established under the EU Horizon Europe
investments in deep-tech. Up to now the leverage effect of the EIC Fund is 3.14, that means that for programme. It has a budget of €10.1 billion to
each euro invested in an EU Small Medium Enterprise (SME) by the EIC Fund, the SME has support game changing innovations throughout
fundraised 3.14 euros more from private investors. the lifecycle from early stage research, to proof of
concept, technology transfer, and the financing and
scale up of start-ups and SMEs.
Q: In your perspective, what role should public funding, especially through grants, play in Bas advises his clients and partners
addressing the more pronounced “valley of death” in climate tech? through through
The EIC operates complex cross-border
three deals —
funding schemes
and is focused on finding the best
Pathfinder, Transition, and Accelerator — whose
partners for our clients. Furthermore,
A: The climate tech innovation journey has more than one “valley of death”. The different private calls are either open, following a non-topic
he takes a keen interest in guiding
investors tend to be short-term driven so not investing in the lab stage and frequently not even in prescription, or challenge-based, following a top-
management teams and
the prototyping valley of death. So public grants, such as the ones provided by EIC, have the roles down approach. While to
shareholders Pathfinder
achieveistheir
for early-stage
Energy
of funding scientific knowledge advancements, and facilitate the innovation journey of climatech, research, and Transition
Transition is to scale up the proof of
ambitions.
including technology scale up, because they are long-term strategic investments. concepts developed within a previously funded EU
project, Bas’s
the Accelerator is to
dedication dedicated
his work,to individual
clients,
companiesand(SMEs)
partners
andwas officially
includes bothrecognised
grants and
when
equity via heFund.
the EIC was nominated as the Young
M&A Talent of the year by the Dutch
M&A Community in 2019.
COMPANIES HEADQUARTERED IN THE UNITED STATES, CHINA AND

UNITED KINGDOM RAISED THE MOST FUNDING IN 2023.
Yearly global funding by country Top 10 countries by funding in 2023
$100B $102.5B United States $28.4B

$89.7B
China $10.9B
$80B $72.9B
United Kingdom $6.5B
France $4.8B
$60B
India $4.5B
$40.0B
Germany $4.3B
$40B
$27.5B
Sweden $3.6B
$20B Canada $2.8B
Netherlands $1.1B
$0B Switzerland $0.8B
2019 2020 2021 2022 2023
0B
0B
5B
0B
5B
$0
$5
$3
$1
$1
$2
$2
STOCKHOLM RETAINS ITS TITLE AS THE MOST FUNDED CITY IN

2023, THIS TIME CLOSELY FOLLOWED BY LONDON.
Top 10 cities in 2023 by funding with 20+ deals
ORGANISATION HQ CITY FUNDING YOY VARIATION

STOCKHOLM $3.4B -46.9%
LONDON $3.3B +6.5%
MUMBAI $2.0B +66.7%
BERLIN $1.4B -50.0%
SAN FRANCISCO $1.4B -75.0%
NEW YORK $1.4B -60.0%
BOSTON $1.2B +140.0%

BENGALURU $1.1B +10.0%
MUNICH $1.1B -8.3%
PARIS $900.0M -62.5%
IN 2023, ACQUISITIONS REACHED A HISTORIC HIGH (250), WHILE

IPOS AND SPACS RETURNED TO PRE-PANDEMIC LEVELS.
Yearly global exit activity
Mergers & Acquisition IPO SPAC

350
314
300
262
250 241
200
150
100 88
52
50
0
2019 2020 2021 2022 2023
The figures illustrate exit activity including IPOs, SPACs, mergers and acquisitions of private climate tech ventures, while excluding venture and post-exit financing.
PART 2
FROM THE PERSPECTIVE OF EACH
INNOVATION STAKEHOLDER
1 2 3
INNOVATORS CORPORATIONS INVESTORS
1
STATE OF CLIMATE TECH '23 | INNOVATORS p.39
KEY
INNOVATORS TAKEAWAYS
Amid the increased VC scarcity and competition, founders
FUNDRAISING GETS in climate tech face longer journeys to secure equity
EVEN THOUGHER funding, particularly in later stages.
The increased involvement of banks and governments,

TRADITIONAL INVESTORS tripling the funding compared to the previous year, is
EYE LATER STAGES bolstering later-stage deals.
Depending on the innovation type, founders should

NON-DILUTIVE IS consider non-dilutive funding options, exploring grants for
TYPE-SPECIFIC breakthroughs and debt for adoption.
1 INNOVATORS
overview
pre-seed and seed organisations
early stage organisations
later stage organisations
exits
SHARE OF FUNDING IN ENERGY STEADILY GROWING SINCE 2020,

NOW REPRESENTING 35% OF CLIMATE TECH FUNDING IN 2023.
Share of yearly global funding by climate change challenge area
10.9% 5.2%
100%
1.3% 1.8%
13.5% 12.4%
80%
36.0% 24.1%
60% 3.1%
0.8%
40% 23.6% 35.3%
4.8%
20% 5.1%
1.8% 1.3%
1.3% 1.1%
5.7% 10.3%
0%
2019 2020 2021 2022 2023
The figures illustrate funding and deal activity in private climate tech ventures, covering equity, debt, grants, and other financial instruments, while excluding exits and post-exit
financing. An organisation can fall into multiple categories, potentially being counted more than once. For more details about the climate change challenge areas
methodology, please refer to the section at the beginning of the report.
ENERGY, TRANSPORT, CIRCULAR ECONOMY, AND INDUSTRY WERE

THE FUNDING GIANTS OF 2023.
2023 global funding by climate change challenge area YoY funding variations
Food and agriculture Circular economy +6.3%

$6.0B
Emissions control Water +4.9%
$2.1B
Food and agriculture
Industry
Natural environment Industry Emissions control, reporting and offsetting
Industry +3.0%
$12.0B
Natural
environment Energy -6.8%
$1.5B
Built environment -8.0%
Energy Transport
$27.9B Transport -19.0%
$40.9B
Energy Transport
GHG capture Emissions control, reporting & offsetting -35.4%

Water
$1.3B Circular $2.1B
GHG capture, removal & storage -51.8%
GHG capture, removal and storage
economy
Water
Circular economy
$14.3B
Built environment Food and agriculture
Built environment
-51.9%
$5.9B
INNOVATOR
SPOTLIGHT
Q: Controlled Thermal Resources (CTR) operates in a rather interesting nexus: lithium mining and
geothermal energy. Why? Rod Colwell
CEO
A: Geothermal power operations have been producing baseload renewable energy in the Salton
Sea geothermal field for over 40 years. The highly mineralized brines from this massive
underground reservoir contain lithium and other critical minerals.
Controlled Thermal Resources (CTR) is a U.S.
Through Direct Lithium Extraction (DLE) technology, we can now recover lithium and other critical
company specializing in lithium, battery
minerals from these super hot brines, and utilizing the excess heat and steam, we can produce
materials, and renewable energy production
battery-grade lithium products in a matter of hours with a near-zero carbon footprint. There is
with projects in advanced development in
also the added benefit that cathode and battery manufacturers can co-locate onsite for direct
California. CTR’s leadership team has
access to our products and clean power.
successfully developed and managed
renewable energy projects in the Salton Sea
region for over 30 years.
Q: Experts predict that lithium could be in short supply as early as 2025. How does CTR expect to
tackle this issue of a supply shortage?
A: CTR has multiple long-term lithium supply agreements in place with our clients. What makes
this project so unique is that we have developed a modular engineering design where each
project stage can be replicated for a more cost effective and efficient scale up.
p.xx
INNOVATOR
SPOTLIGHT
As we start to see projects in other countries delayed due to geopolitics and environmental
issues, it’s more important than ever for the auto sector to source materials from secure
jurisdictions with higher sustainability credentials.
Q: Your company recently raised $100m in growth equity. How is the funding raised in this round
going to be deployed?
A: We expect to commence construction of Stage 1 in December and are scheduled to

deliver 25,000 metric tons of lithium hydroxide monohydrate (LHM) in 2025. We plan to
deliver a total of 175,000 metric tons of lithium per year via seven modular project stages in
2027/28.
These funds will be deployed to commence construction while we continue to raise

capital throughout 2024.
HIGHER SHARE OF GRANT FUNDING IN BREAKTHROUGH

SOLUTIONS, AND A HIGHER SHARE OF DEBT IN ADOPTION.
Last 5 years funding by financing type across PI framework

Digital
Grant Grant
Other 1.3% Other
3.1%
0.8% 3.0%
Debt Debt
4.0% 10.9%
Equity Equity
92.0% 84.8%
Grant Other Grant Other

9.2% 0.2% 3.2% 6.7%
Debt Debt
7.0% 17.3%
Equity
Physical
Equity 72.8%
83.6%
COMPANIES HEADQUARTERED IN THE UNITED STATES, CHINA

AND UNITED KINGDOM RAISED THE MOST FUNDING IN 2023.
Yearly global funding by country Top 10 countries by funding in 2023
$100B $102.5B United States $28.4B

$89.7B
China $10.9B
$80B $72.9B
United Kingdom $6.5B
France $4.8B
$60B
India $4.5B
$40.0B
Germany $4.3B
$40B
$27.5B
Sweden $3.6B
$20B Canada $2.8B
Netherlands $1.1B
$0B Switzerland $0.8B
2019 2020 2021 2022 2023
0B
0B
5B
0B
5B
$0
$5
$3
$1
$1
$2
$2
The figures illustrate global funding in private Climate Tech ventures, covering equity, debt, grants, and other
financial instruments, while excluding exits and post-exit financing.
STOCKHOLM RETAINS ITS TITLE AS THE MOST FUNDED CITY IN

2023, THIS TIME CLOSELY FOLLOWED BY LONDON.
Top 10 cities in 2023 by funding with 20+ deals
ORGANISATION HQ CITY FUNDING YOY VARIATION

STOCKHOLM $3.4B -46.9%
LONDON $3.3B +6.5%
MUMBAI $2.0B +66.7%
BERLIN $1.4B -50.0%
SAN FRANCISCO $1.4B -75.0%
NEW YORK $1.4B -60.0%
BOSTON $1.2B +140.0%

BENGALURU $1.1B +10.0%
MUNICH $1.1B -8.3%
PARIS $900.0M -62.5%
THE NUMBER OF DEALS IN 2023 DECLINED ACROSS ALL

FINANCING TYPES AND THREE STAGES.
Deals by financing type

+560.6%
2,333
2,183 2,134 2,183
2,068
1,771
1,671 1,712
1,626
1,061
654
592
514
426
222
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
OVERALL, 2023 SHOWED Exit deal count YoY funding variation
MORE RESILIENCE IN THE 2020 2021 2022 2023

COUNT OF EXITS ACROSS
THE CHALLENGE AREAS. energy 22.6% 252.6% -23.9% -13.7%
industry 25.0% 380.00% -33.3% 31.3%

112.5% 341.2% -30.7% 19.2%
transport
50% of all the challenge areas experienced 58.3% 173.7% -23.1% 32.5%
food and agriculture
positive year-over-year growth, most notably in
water, industry, and emissions control. Circular
60.0% 562.5% -5.7% -10.0%
economy, the built and natural environment, and circular economy
energy were amongst the biggest hit in terms of
exit count declines. -14.3% 350.0% -22.2% -23.8%
built environment
0.0% 350.0% -44.4% -20.0%

natural environment
0.0% 300.0% -16.7% 40.0%

emissions control
0.0% 100.0% 50.0% -16.7%

GHG Capture, removal and Storage
0.0% 300.0% 0.0% 100.0%

water
An organisation can fall into multiple categories, potentially being counted more than once. For more details about the climate change challenge areas
methodology, please refer to the section at the beginning of the report.
ENERGY, TRANSPORT, CIRCULAR ECONOMY, AND FOOD AND AG. RECEIVE THE
MOST FUNDING ACROSS BREAKTHROUGH AND ADOPTION.
Yearly global funding by challenge area across product-innnovation framework
Industry
Food and Ag. 3.6% Water (0.8%)
Digital
Industry Food and Ag.
16.4% 11.8% 10.7% Nat. env. (2.9%)
Circular economy GHG
Water 0.4% Built env. (9.8%)
5.2% 2.2% Circular
Transport Natural economy Energy
12.2% environment 19.3% 15.1%
Emissions 13.1% Transport
27.7% Emissions
5.8% Built 10.6%
Energy environment
26.4% 6.8%
Food and Ag. Industry

Food and Ag. Industry 7.5%
13.0% 15.4%
9.3%
GHG Water (1.9%) Water (0.9%) Nat. env.
GHG (1.4%)
5.3% Nat. env. (1.2%) (0.5%)
Circular economy Built env. (3.7%)
Circular economy 12.1%
9.4% Built env. (2.6%) Energy
Transport Transport 34.3%
Energy
Physical
17.7% 31.5% 29.8% Emissions
10.6%
Emissions
2.0%
challenge areas methodology, please refer to the section at the beginning of the report. For more details about the PI framework methodology, please refer to the
section at the beginning of the report.
INSTINCTIVELY, TRLS ALIGN WITH FUNDING STAGES - GRANTS

FAVORED FOR LOWER TRLS, WHILE EQUITY PREVAILS AT TRL 9.
2023 share of global funding by TRL and deal stage 2023 share of global funding by TRL and financing type
TRL 1-5 TRL 6-8 TRL 9 TRL 1-5 TRL 6-8 TRL 9
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
Pre-seed and seed Early stage Later stage Equity Debt Grant
EQUITY FUNDRAISING HAS CONSISTENTLY TAKEN

LONGER FOR FOUNDERS, ESPECIALLY IN LATER STAGES.
Median years from founded year and different deal types
Founded to Pre-seed Pre-seed to Seed Seed to Series A Series A to Series B Series B to C / Growth
2019 2.8 years 0.5 years 0.5 years 0.7 years 0.8 years
INNOVATOR
SPOTLIGHT
Q: How difficult is it to produce high-grade low-emissions steel?

Adam Rauwerdink
A: It has been very difficult to reduce carbon emissions from primary steelmaking SVP, Business Development
because the long-standing traditional process is reliant on fossil fuels and involves
several complex steps. Boston Metal is a global metals technology
Many low-carbon solutions are being explored, including recycling scrap; carbon solutions company that is commercializing
capture, use and storage (CCUS); green hydrogen-based direct reduced iron (DRI); Molten Oxide Electrolysis (MOE) to offer a
scalable, cost-competitive and green solution
and using other fuels like biomass and syngas to power blast furnaces. Of these [low-
for the production of steel and other metals.
carbon options being explored to reduce emissions], only green hydrogen and Boston
The technology is currently being scaled up for
Metal’s approach, electrification, have the potential to entirely remove carbon green steel production at Boston Metal’s pilot
emissions in the process. plant outside of Boston, while nearing
The ideal steel decarbonization technology is one that is truly free of CO2 emissions, commercialization for high-value metals
able to use 100% of globally available iron ore feedstock, cost-competitive without production at its facility in Brazil.
long-term subsidies or regulatory pressure, and is capable of global deployment As of September 2023, the company has raised
through a modular, incrementally scalable pathway. Boston Metal is the only company more than $350 million in capital from diverse
sources (including a $262M Series C round)
in the world that is commercializing a green steel technology that meets this criteria.
spanning private equity, venture capital,
institutional investors.
Boston Metal intends to use this funding to
advance the company on its path to
commercializing MOE for green steel production
by 2026.
p.xx
INNOVATOR
SPOTLIGHT
Q: What does Boston Metal's path to commercialization look like?
A: At full production scale, MOE has the potential to be cost-competitive with today’s coal-based
steel. Like aluminum smelting, MOE runs in modular reactors and can be economically scaled in
steps of less than 100,000 tons/year of production capacity with the potential for millions of tons
of output as seen in current integrated steel mills.
In terms of how we’re scaling MOE to bring it to the steel market by 2026, we’re currently focused
on industrial-scale development of our inert anode technology. We are in the process of building
a state-of-the-art facility for developing and manufacturing refractory and reactive metals –
from raw materials to finished products that will produce the supply of inert anodes required for
our green steel technology.
For our high-value metals business, Boston Metal do Brasil will use the MOE technology to recover
high-value metals from mining waste at our facility in Brazil, creating a new revenue stream for
the company.
IN 2023, EQUITY FUNDING DECREASED ACROSS ALL STAGES, WITH

SERIES C/GROWTH SEEING A -40% YOY DECLINE.
Yearly global equity funding activity by deal type
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
$4B $3.9B $35B $33.4B $33.0B
$30B
$3.1B
$3B $25B
$2.7B
$19.4B
$20B
$2B $14.9B $15.6B
$15B
$1.4B $11.8B $11.1B $10.9B
$10B $9.6B $8.9B
$0.9B $7.7B
$1B $5.1B
$3.5B
$0.3B
$5B $3.6B $3.4B
$0.3B
$0.1B $0.07B $0.2B
$0B $0B
Pre-seed Seed Series A Series B Series C+ / Growth
The figures illustrate equity funding and deal activity in private climate tech ventures, covering equity, debt, grants, and other financial instruments, while excluding
exits and post-exit financing.
EQUITY DEALS DECREASED IN 2023 ACROSS ALL STAGES, WITH

SERIES A TAKING THE MOST SIGNIFICANT HIT AT -25% YOY.
Yearly global equity deal activity by deal type
2019 2020 2021 2022 2023

1,000
885 869
800
671
600 567 574

511
438
428
400
309
260 256 264 271
239 217 211
186 177
200 137 139
118 109 102
74 79
0
Pre-seed Seed Series A Series B Series C+ / Growth
AI DOMINATES ALL THINGS DIGITAL WHILE BATTERIES, HYDROGEN AND EVS TAKE
CENTER STAGE IN ALL THINGS PHYSICAL.
Wordmap of Buzzwords of deals in 2023 across the PI framework
Digital
Physical
The figures illustrate funding and deal activity in private climate tech ventures, covering equity, debt, grants, and other financial instruments, while excluding
exits and post-exit financing. For more details about the PI framework methodology, please refer to the section at the beginning of the report.
INNOVATOR
SPOTLIGHT
Q: What is unique about carbon upcycling's process for converting carbon into advanced
materials? Dante Luu
Associate
A: Carbon Upcycling's technology mineralizes CO2 emissions into underutilized feedstocks,
upcycling them into carbon-enhanced cementitious material. The material can be used to
replace a portion of clinker in cement or cement in concrete while providing exceptional strength
Carbon Upcycling is a cleantech company
and durability.
delivering technology to decarbonize hard-to-
Our process is unique because it can utilize a range of CO2 concentrations from point source
abate industries.
emissions like a flue stack to highly concentrated sources like direct air capture units. The
productive use of CO2 is also unique. Instead of storing the emissions underground, emissions are
Our patented technology permanently stores
mineralized into materials like industrial byproducts to upcycle them into valuable cement
CO2 in industrial byproducts and minerals,
replacements - enabling a circular economy.
transforming them into high-performance
alternative materials for cement and concrete.
Q: Among the market segments that you cater to, which one is currently demonstrating the
We reduce the carbon impact of industrial
highest demand?
processes, divert industrial byproducts from
A: Our primary vertical is hard-to-abate industries like cement, steel, energy, and mining. We are
landfills, and enable a circular economy.
seeing demand in these industries for practical decarbonization solutions to achieve upcoming
2030 ambitions. Carbon Upcycling provides cement manufacturers with a carbon utilization
solution and unlocks a diverse and local supply of low-carbon materials to reduce the carbon
impact of their cement while also providing a circular solid waste management solution for other
industries.
INNOVATOR
SPOTLIGHT
Q: How adaptable is the carbon upcycling model today, and to what degree can it be integrated
with existing infrastructure?
A: Our technology was designed to be highly adaptable to the legacy infrastructure found in
hard-to-abate industries. It can be integrated wherever there is an adequate CO2 source,
sufficient feedstock and a relevant commercial offtake.
Our primary integration is at the cement plant, where our technology connects directly to the kiln
flue stack to carbonate feedstock. Material from our technology then flows downstream
integrated with the plant's material handling system.
We also have the opportunity to build stand-alone units at a feedstock or CO2 source and sell
material directly to ready-mix concrete producers.
INNOVATOR
SPOTLIGHT
Q: Considering Canada's recent climate policy record compared to its North American
counterpart, what policy direction do you believe is sorely needed to best enhance CO2 capture,
storage, and utilization in the future?
A: For carbon utilization and industrial decarbonization technologies like ours, governments
should look to implement procurement policies that incentivise uptake. Both “buy clean” and “buy
local” policies greatly enhance demand for cleantech products and help to create incentives for
companies to deploy technology in different jurisdictions. To enhance the future of CCUS
technologies and, ultimately, the end goal of decarbonization, we need to clearly distinguish
between carbon dioxide removal (CDR) and emissions reductions/abatement. CDR captures
carbon dioxide from the atmosphere. Emissions reduction prevents emissions from entering the
atmosphere, which can be achieved by point source capture, optimization of processes, or
replacement of carbon-intensive material inputs.
Both removal and reduction are required for decarbonization, but leading groups like SBTi support
the thesis that a net zero 2050 will be achieved through 5-10% CDR and 90-95%1 emissions
reduction. Yet, it seems like policy favours the former. Setting incentive policies and emissions
targets that proportionally represent the impact that removal and reduction have will better aid
the adoption of emissions reduction technologies, like Carbon Upcycling. In doing so, the industry
as a whole can evolve as opposed to the over-development of one-half of CCUS.
FIRST-OF-A-KIND PROJECTS
KEY STRATEGIES
TO NAVIGATE FINANCING
The term “FOAK”, first-of-a-kind refers to a first-time
project that proves the viability of a technology, Commercial
business model, or a production process at a Prototype Batch scale demo Full-scale
commercial scale. A precise scope for the term is
challenging, given the unique nature of each project.
Scale
FOAK entails a financing approach that addresses the
risk of a project which is generally too capital-intensive Lab Pilot FOAK Factory
for VCs and too novel for PE / infrastructure finance. Plant (X) (10X)
These projects are not only crucial for solving climate
change at scale, but are also an inflection point for Capital
0 - $2M $1M - $10M $10M - $100M $100M+
startups, leading to exponential returns if successful. Required
There is a funding gap, referred to as the “first-of-a- Enablers Angels Grants Combination Growth
Incubators Accelerators Grants + Debt
kind valley of death” for mid-stage startups, due to the Grants Seed VC Debt + PE/Infra
risk involved in commercialisation. Equity+
Strategic
Partners
Source: Adapted from the articles- Solving the FOAK puzzle by Climentum Capital, and The FOAK Question by Extantia.
WHAT A FOAK-ING YEAR! FROM E-FUELS TO BATTERIES, HERE ARE TEN F-O-A-K
CLIMATE DEALS THAT MADE A MARK IN 2023.
Company Amount HQ Country Decription Read More
$2.2B FRANCE Equity + Debt + Grant funding to finance battery manufacturing factory
$1.02B UNITED STATES Equity + Grant funding to build US’ first battery materials manufacturing facility
$520M UNITED STATES Grant + Equity funding for manufacturing LFP battery at-scale in the U.S
$96M CANADA EU Grant funding for its first "closed loop" system commercial-scale project
$90M NORWAY Grant from the EUIF for the large-scale syn. graphite anode materials plant
$57M DENMARK Grant + Equity funding to scale-up carbon utilisation biomanufacturing site
$44M NORWAY Grant from the EUIF for the production plant of e-fuels at commercial scale
$25M FINLAND Equity + Grant funding to build industrial mycoprotein ingredient factory
$14M AUSTRALIA Grant funding for manufacturing of its ultra efficient h2 electrolysers
$9M FINLAND Equity funding to build world’s first commercial facility producing air protein
THOUGHT LEADER
SPOTLIGHT
Q: How do you currently perceive FOAK (First-of-a-Kind) financing, and what challenges do you
observe in ensuring the success of such projects? Chetan Krishna
Head of Research and
A: The FOAK project stage is possibly the most crucial de-risking step for the long-term success Diligence
of a startup, as it entails proving both the technology working at scale, as well as the business
model. Over the past few years, many climate tech startups have reached this stage of maturity,
and the number will increase year-on-year, so we will need much more FOAK finance.
Chetan currently leads the Research & Diligence
function at Third Derivative. He has worn many
The challenges these projects face are both financial and operational - FOAK projects continue to different hats in the world of climate, working
carry technical risks, by definition, and yet function as large infrastructure, which has historically with a range of organizations, including on
been associated with relatively lower returns and a very different set of risks. The players who fund large-scale infrastructure finance for
renewables with the World Bank and IFC, helping
infrastructure and the players who fund technical de-risking have largely been two very different
get an early stage deep climate tech company
types of investors, each specializing in what they focus on, and so the peculiar risk-return features get off the ground, and as an innovation
of FOAK projects are novel for each, resulting in a gap in capital supply. researcher with the Harvard Business School.
Prior to joining Third Derivative, he was part of
Outside of capital, operationally, FOAK projects entail a complex project development and the founding team of 3i Partners, an early stage
venture capital fund focused on solutions for the
management process, with activities such as project design, permitting, safety, project financial
underserved in India. He holds a B.Tech from the
engineering etc. Each of these is complex in and of itself, and for startups who have so far Indian Institute of Technology, Delhi and a
typically focused on developing technology and customer relationships, it entails acquiring a Master’s in Technology Policy from the
whole new set of capabilities, which is not easy. Massachusetts Institute of Technology.
THOUGHT LEADER
SPOTLIGHT
Q: Can you share insights into the existing initiatives aimed at enhancing FOAK project finance, For D3 - Third Derivative, a program of the Rocky
and are there specific areas you believe require more attention or improvement? Mountain Institute, is a global climate innovation
engine and accelerator platform.
A: What is very exciting to us is that there is not one single initiative or source of capital that we D3's aim is to find, fund and help scale the most
see trying to enhance access to FOAK finance, but several. These include more risk seeking private promising climate tech solutions globally. Since
equity players, late stage VCs, corporate capital providers, off-takers acting as project investors, 2020, D3 has supported ~168 startups, which have
HNIs and family offices and philanthropic foundations all acting as financiers. The spectrum of gone on to raise over $1.3B in follow-on funding, and
players is truly quite vast and as H2GS’s Boden green steel project shows, there could be many D3's ecosystem consists of corporate partners with
types of players involved in a single project. a combined market cap of $4T and investor
partners with a combined AUM of >$7B.
We believe that outside of capital, a key area which could unlock tremendous value if addressed,
is the entire project development process and the management of it. This would entail helping
startups navigate access to capital and project structuring, navigating vendors and supply
chains, permitting, logistics, safety regulations, etc.
THOUGHT LEADER
SPOTLIGHT
Q: In your opinion, what role can collaborative efforts, like "crowding in" FOAK project finance, play
in mitigating challenges and increasing the success rate of innovative projects?
A: Given that there is no ‘one size fits all’ approach to FOAK financing today, collaboration across a
wide variety of stakeholders could help in making innovative financial structures for projects
possible and help in the emergence of systematic ‘templates’ in financing such projects. It would
help different financiers access and leverage each others’ capabilities and knowledge, and
ultimately allocate risk and return in alignment with each individual's preferences.
Collaborative approaches could also bring value to startups building FOAK projects from different
sources - for instance, corporate capital providers can offer knowledge on best practices in
developing and managing technical infrastructure.
.
1 INNOVATORS
overview
exits
STATE OF CLIMATE TECH '23 | INNOVATORS_PRE-SEED AND SEED p.67
IN 2023, PRE-SEED AND SEED FUNDING DECLINED, WITH EQUITY

FINANCING SEEING ITS STEEPEST HISTORICAL DROP AT -17% YOY.
Yearly pre-seed and seed stage funding by financing type

$5B $4.9B
$4B $3.8B
$3.5B
$3B
$2.2B
$2B
$1.5B
$1B
$0B
2019 2020 2021 2022 2023
NORTH AMERICA AND EUROPE LEAD IN PRE-SEED AND SEED

FUNDING, WHILE ONLY OCEANIA SHOWS POSITIVE YOY GROWTH.
EUROPE
$1.4B
-63.8% YOY
ASIA
NORTH AMERICA $428.1M
$1.5B -21.4% YOY
-37.5% YOY
AFRICA
$48.7M
-35.1% YOY
OCEANIA
$18.5M +7.5% YOY
-73.4% YOY
DEAL ACTIVITY MIRRORED FUNDING TRENDS IN PRE-SEED AND

SEED. EQUITY DEALS DOWN 20% AND GRANTS 15% YOY.
Yearly global pre-seed and seed deal activity by financing type
Equity Debt Grant Others

1,200 1110 1127
1,000
797 897
800
745
749
600 611 699
597 505
400 336
279 252 320
242
200 243 74
73 122 49
0
2019 2020 2021 2022 2023
HOWEVER, SINCE COVID, THE MEDIAN FUNDING

VALUES FOR PRE-SEED AND SEED EQUITY DEALS
HAS CONSISTENTLY BEEN INCREASING.
Yearly median equity pre-seed deal size
Pre-seed Seed
$3M
$2.7M
$2.4M
$2.5M
$2.0M
It’s not all doom and gloom for pre-seed and seed. Even though the $2M
absolute dollar amounts for equity within pre-seed and seed declined
by 17% in 2023, increasing median numbers show that funding interest $1.4M
$1.5M
is being skewed to higher values within this stage.
$1.5M $1.0M
$0.9M $1.1M
If this trend continues in 2024, pre-seed and seed companies could $1M
$0.6M
have access to more funding, increasing the rate at which very early
stage companies ‘graduate’ into later stages. $0.5M
$0.5M
$0M
2019 2020 2021 2022 2023
VENTURE INVESTORS LEAD IN DEAL ACTIVITY, WHILE GOVERNMENT

AND CORPORATE PARTICIPATION GROWS.
Share of yearly pre-seed and seed stage deals by investor type
Venture investors Corporations Government Growth investors Banks Others

100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
A deal can be participated by multiple investors, potentially being counted more than once. The figures illustrate funding and deal activity in private climate tech
ventures, covering equity, debt, grants, and other financial instruments, while excluding exits and post-exit financing. For more details about the investor group
methodology, please refer to the beginning of the Investors section.
PRE-SEED AND SEED DEALS PRIORITIZE ENERGY, FOOD AND AG,

WITH A FOCUS ON BREAKTHROUGHS IN ALTERNATIVE PROTEINS.
Word clouds for buzzwords in the pre-seed and seed stage deals in 2023 across the PI framework
Digital
Physical
LIKE GLOBAL VC TRENDS, INCUBATION AND ACCELERATION

PROGRAMS PEAKED IN 2021 AND DECLINED THEREAFTER.
Count of startups that have completed at least one incubator or accelerator program
Organization count
800 760
688 701
600 511
590
400
200
0
2019 2020 2021 2022 2023
ACCELERATORS AND INCUBATORS BET ON ENERGY, BUILT

ENVIRONMENT AND NATURE STARTUPS IN 2023.
Share of incubated and accelerated startup by challenge area
100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
30% OF VC-FUNDED STARTUPS COMPLETED A PROGRAM BEFORE

SECURING FUNDING FROM VCS, AND THIS TREND IS GROWING.
Share of startups that completed an incubation or acceleration program before securing their first VC funding
Raised VC after startup program Raised VC without a startup program

100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
ONE PROGRAM IS USUALLY ENOUGH FOR MOST STARTUPS TO

SECURE VC, BUT MORE ARE OPTING FOR MULTIPLE PROGRAMS.
Number of programs completed by startup before raising VC
Median Average Max

6 6
5
5
4 4 4
4
3
1.7 1.9
2 1.4 1.5
1.3
1 1
1 1 1 1
0
2019 2020 2021 2022 2023
268 INCUBATORS AND ACCELERATORS GLOBALLY SUPPORTED AT

LEAST ONE CLIMATE TECH STARTUP IN 2023.
Number of acceleration and incubation programs active in 2023 by continent
EUROPE
#107
NORTH ASIA
AMERICA #42
#102
AFRICA
#8
OCEANIA
SOUTH AMERICA #5
#1
and post-exit financing. For more details about the investor group methodology, please refer to the beginning of the Investors section.
FROM NUCLEAR FUSION TO BIOACTIVE PROTEINS, FROM THE US TO

INDONESIA, HERE THE TOP 10 PRE-SEED AND SEED DEALS IN 2023.
Company Amount HQ Country Tags Read More
$45M UNITED KINGDOM #Carbon Markets
$37.6M INDONESIA #Electric Vehicles
$29M UNITED STATES #Nuclear Fusion
$27M UNITED STATES #Plasma Tunnel-boring
$26M CANADA #Plant-based Seafood
$25M UNITED KINGDOM #Carbon Markets
$21M SWITZERLAND #Energy Storage
$19M GERMANY #Space Infrastructure #Temperature Measurement
$16M FRANCE #Nuclear Fusion
$16M SPAIN #Bioactive Proteins

1 INNOVATORS
overview
exits
STATE OF CLIMATE TECH '23 | INNOVATORS_EARLY STAGE p.80
EARLY-STAGE FUNDING DROPPED 40% IN EQUITY AND 67% IN

DEBT, WHILE GRANTS EXCEEDED $1 BILLION FOR THE FIRST TIME.
Yearly early stage funding by financing type

$50B
$42.0B
$40B
$32.5B
$30B
$25.5B
$20B
$13.1B
$11.4B
$10B
$0B
2019 2020 2021 2022 2023
IN 2023, DEALS DECLINED WITH EQUITY, DEBT, AND GRANTS

DROPPING BY 25.3%, 42.8%, AND 24.6%, RESPECTIVELY.
Yearly global early stage deal activity by financing type

2,000
1669
1486
1,500
1246
942
1,000
711
500 389 416 398

300
213
227 196 152
54 68 87
0 38 85 114 79
2019 2020 2021 2022 2023
SERIES A ROUNDS MAINTAIN A CONSISTENT SIZE FOR THREE YEARS,

WHILE SERIES B SEES A 10% DROP.
Yearly Median values for equity deals in Series A and Series B
Series A Series B
$30M
$26.0M
While there are several possibilities why this could happen, this trend $24.3M $23.4M
$25M
could suggest stalled expectations for returns or a growing risk $21.6M
aversion among investors in the face of economic uncertainties,
$20M $18.6M
making them less willing to pay high valuations for early-stage
businesses.
$15M
Whatever the case, this trend has implications for startups. A cautious
$11.0M $10.9M
VC market means finding funding might get tougher, especially at the $10.0M
Series B stage, where scaling is critical. Moving forward in 2024, $10M $8.3M
$7.0M
climate tech startups may need to demonstrate stronger traction and
clearer paths to scalability to secure funding within these make-or-
$5M
break stages.
$0M
2019 2020 2021 2022 2023
DESPITE EARLY-STAGE CHALLENGES, EUROPE, NORTH AMERICA,

AND ASIA REMAIN THE TOP THREE FUNDED CONTINENTS.
EUROPE
$10.5B
-28.3% YOY
ASIA
NORTH AMERICA
$4.6B
$9.4B -51.8% YOY
-40.0% YOY
AFRICA
$299.5M
-21.5% YOY
OCEANIA
$202.3M -67.6% YOY
-55.4% YOY
AS VC EARLY-STAGE DEALS DECLINE, CORPORATIONS AND

GOVERNMENTS SEE AN INCREASE.
Share of yearly early stage deals by investor type
Venture investors Growth equity investors Banks Corporations Governments

Others
100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
IN 2023, VC DEAL PARTICIPATION DECLINES ACROSS ALL STAGES,

PARTICULARLY IN THE LATER STAGES.
Yearly global equity deals participated by at least one VC by stage

2,500
2028
2,000 1818
1614
1,500
1072
1,000 832
500
0
2019 2020 2021 2022 2023
ENTREPRENEURS ARE TAKING LONGER TO REACH THE CRUCIAL

MILESTONE OF SECURING THEIR FIRST VC ROUND.
Median years from founded year to first VC round
Median
5
4.3
3.9
4 3.7
3.5
3.1
3
0
2019 2020 2021 2022 2023
ENTREPRENEURS NEED MORE TIME AND A PREVIOUS ROUND TO

SECURE THEIR FIRST VC ROUND.
Median years from founded year to first VC round Deals before first VC round
Median Median Average

5 2.5
4.3
2.1
3.9 1.9
4 3.7 2
3.5 1.7
3.1 1.5
3 1.5
1.2
2 1
1.0 1.0 1.0 1.0 1.0
1 0.5
0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
TIME TO SECURE THE FIRST VC ROUND INCREASES IN 2023 ACROSS

ALL AREAS, EXCEPT ENERGY AND EMISSIONS CONTROL.
Median years from founded year to first VC round Median years from founded year to first VC round
(raised in the last 5 years) (raised in 2023)
Industry 4.2 Industry 4.7

Water 4.5 Water 5.1
Natural environment 3.4 Natural environment 4.2
Built environment 4.3 Built environment 4.6
Energy 4.5 Energy 4.5
Emissions control 2.7 Emissions control 2.6
Transport 3.9 Transport 4.8
Circular economy 3.8 Circular economy 4.3
GHG capture & storage 2.7 GHG capture & storage 2.7
Food and agriculture 3.7 Food and agriculture 4.6
ELECTRIC VEHICLES GAIN MOMENTUM COMPARED TO PRE-SEED AND SEED DEALS,

WHILE AGRICULTURE ASSUMES A MORE PROMINENT ROLE IN BREAKTHROUGHS.
Word clouds for buzzwords in the early stage deals in 2023 across the PI framework
Digital
Physical
THE TOP 10 EARLY-STAGE DEALS IN 2023 FROM ACROSS THE WORLD, MIRRORING THE
FOCUS ON ELECTRIC VEHICLES AND BATTERY TECHNOLOGY.
$750M CHINA #Electric Vehicles
$620M UNITED KINGDOM #Commercial Fleets #Autonomous Vehicles
$466M GERMANY #Residential Energy Solutions
$415M CHINA #Electric Vehicles
$300M UNITED STATES #Energy Storage #Battery-tech
$200M UNITED STATES #Energy Optimization Software
$195M UNITED STATES #Artificial Intelligence #Mining
$150M UNITED STATES #Plastic Recycling
$150M UNITED STATES #Genetic Engineering

1 INNOVATORS
overview
exits
STATE OF CLIMATE TECH '23 | INNOVATORS_LATER STAGE p.92
WHILE LATER-STAGE EQUITY FUNDING CONTRACTS BY 40% YOY,

DEBT INCREASES BY 70%, AND GRANTS DOUBLE.
Yearly later stage funding by financing type

$60B
$53.4B $53.2B
$50B
$43.8B
$40B
$30B
$24.7B
$20B
$14.6B
$10B
$0B
2019 2020 2021 2022 2023
FUNDING GAP ACROSS CONTINENTS WIDENS IN LATER STAGES.
EUROPE
$13.2B
-16.4% YOY
ASIA
NORTH AMERICA
$20.4B $12.7B
-162.8% YOY
-35.1% YOY
AFRICA
$130.8M
-70.5% YOY
OCEANIA
$138.7M +18.6% YOY
-69.8% YOY
AS DEBT AND GRANT SIZES GROW, NUMBER OF DEALS DECREASE,

THOUGH LESS THAN IN EQUITY.
Yearly global late stage deal activity by financing type

500
451
410
400
329
300
235
200 166
107
93 92
100 74 84
25 82 69
69 22
21 16 32
0 10 21
2019 2020 2021 2022 2023
AFTER INCREASING IN 2021, THE MEDIAN TICKET SIZE FOR LATER-

STAGE EQUITY DEALS IN 2023 DROPPED BY 50% YOY.
YEARLY MEDIAN EQUITY LATER STAGE DEAL SIZE
$50.0M $50.0M
$50M
$40M
$33.0M
$29.0M
$30M $25.0M
$20M
$10M
$0M
2019 2020 2021 2022 2023
AS EQUITY INVESTORS HOLD FUNDS, BANKS AND GOVERNMENTS

TRIPLE PARTICIPATION IN LATER-STAGE DEALS.
Share of yearly later-stage funding by investor type

Others
100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
LATER STAGES DEALS FOCUS ON MOBILITY AND A DIVERSE RANGE

OF RENEWABLE ENERGIES.
Word clouds for buzzwords in the later stage deals in 2023 across the PI framework
Digital
Physical
MEGAROUNDS IN 2023 ALLOCATED THE MOST

CAPITAL TOWARDS CAPACITY EXPANSION.
Share of megaround funding by capital utilization
Facility construction Capacity expansion R&D

100%
Since 2022, capacity expansion has been the most prevalent use of
capital by venture companies raising megarounds, speaking to the
legacy focus on pushing adoption within climate tech. 80%
However, although2023 experienced an overall decline in funding and

deal activity, more capital (raised as megarounds) was actually 60%
channeled towards building out new facilities compared to 2022
($12.9B vs. $12.3B). This trend could indicate increasing commitment
by investors to building tangible assets and expanding the physical 40%
footprint of climate tech projects.
But, amidst this growing activity, what was the capital split? Was this 20%
financed primarily by equity, debt, or grants?
0%
2022 2023
EQUITY PREVAILS IN CAPACITY EXPANSION AND R&D, WHILE

FACILITY CONSTRUCTION SEES A BALANCED MIX OF EQUITY AND
NON-DILUTIVE CAPITAL.
Share of financing type in 2023 megarounds by capital utilisation
Equity Non-dilutive
100%
80%
The funding strategy for infrastructure-focused projects in 2023
reflects a reliance on equity for capacity expansion and research and 60%
development, but facility construction capital use cases seem to
adopt a balanced capital stack. This is heavily contrasted with 2022,
where all three capital utilization cases saw a heavier skew towards 40%
equity financing.
20%
0%
DEAL ACTIVITY SEES A SIGNIFICANT DECLINE

ACROSS ALL THREE MOST COMMON USES OF
MEGAROUND CAPITAL, EXCEPT FACILITY
CONSTRUCTION.
Count of megarounds by capital utilisation

250
230
200
150 143
Overall, 2023 experienced a 38% decrease in the number of 100

megaround deals compared to 2022. Within this count, megaround
deals in which capital was used for capacity expansion declined 50%,
while that of R&D declined by 59%. Facility construction was the only 50
utilization source which saw year-over-year positive numbers,
growing by 44%.
0
2022 2023
INFRASTRUCTURE ROUNDS Sectoral share of megarounds
FOCUSED ON FACILITY
Others (13.4%)
CONSTRUCTION WERE Battery (20.5%)
DOMINATED BY SOLUTIONS Alternative steel (1.8%)
WITHIN BATTERIES, EV Plastic alternatives (2.7%)

Advanced materials
INFRASTRUCTURE, AND (3.6%)
RENEWABLE ENERGIES Mining (4.5%)
Electric vehicle
(Specifically solar). Alternative Fuel (5.4%)
infrastructure (15.2%)
Energy storage (8.9%)
Renewable energies (14.3%)

Recycling (9.8%)
Notable examples
Verkor | $2.2B Redwood Materials | $2.2B Gridserve | $677.4M Hozon | $968.4M Nexamp | $400M Origis Energy | $750M
(Equity + Debt + Grant) (Equity + Debt) (Debt) (Equity) (Equity) (Debt)
THE TOP 10 LATE-STAGE DEALS IN 2023 FROM ACROSS THE WORLD, ARE
PREDOMINANTLY CENTERED AROUND BATTERIES.
$2B UNITED STATES #Battery Material Recycling
$1.64B CHINA #Solid-state Batteries
$1.08B UNITED KINGDOM #Energy Infrastructure Solutions
$1B UNITED STATES #Battery Material Recycling
$1B INDIA #Renewable Energy
$908M FRANCE #Energy Storage #Battery-tech
$800M SWEDEN #Energy Storage #Battery-tech
$750M UNITED STATES #Renewable Energy
$677M UNITED KINGDOM #Electric Vehicle Charging Infrastructure

1 INNOVATORS
overview
exits
STATE OF CLIMATE TECH '23 | INNOVATORS_EXITS p.104
WHILE THE IPO WINDOW CLOSED, M&A IN CLIMATE TECH REACHES

A HISTORICAL PEAK.
Yearly exits deals by exit type
Mergers & Acquisitions IPO SPAC

350
314
300
262
241
250
200
150
100 88
52
50
0
2019 2020 2021 2022 2023
WITH EXIT TIMES RANGING FROM 0 TO 20+ YEARS, THE MEDIAN

TIME TO EXIT IN 2023 WAS 9.7 YEARS, INCREASING FROM 2022.
Yearly Minimum, Maximum, and Median years from founded to exit
Minimum Median Maximum

25
20.5
19.9 19.9
20
15
11.3 11.8
9.7
10
6.9 7.6 7.3
5.9
5
1.5 1.8 1.8
0.5 0.2
0
2019 2020 2021 2022 2023
THE EXIT LANDSCAPE EXHIBITS GREATER DIVERSITY ACROSS

CHALLENGE AREAS COMPARED TO ITS FUNDING COUNTERPART.
Yearly global exit deals by climate change challenge area
100%
17.4% 16.4%
2.9% 1.5%
80%
7.2% 13.9%
11.6%
60% 0.0% 19.1%
4.3%
40%
44.9%
27.2%
20% 4.9%
0.0% 10.1% 1.2%
0.0% 4.9%
0% 5.8% 6.5%
2019 2020 2021 2022 2023
A deal can fall into multiple categories, potentially being counted more than once. For more details about the climate change challenge areas methodology, please
refer to the section at the beginning of the report.
DEAL ACTIVITY IS ON THE RISE FOR PHYSICAL SOLUTIONS THAT

ARE BOTH BREAKTRHOUGH AND ADOPTION-FOCUSED.
Count of global exit deals across product-innovation framework
2 2 94 95
2 100
Digital
1.5 80 76
0 60
1
40
18
0.5 20 11
0 0 0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
40 37 200 181
166
30 150 130
20
20 15 100
57
8 10
10 50 33
Physical
0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

For more details about the PI framework methodology, please refer to the section at the beginning of the report.
ACQUISTIONS ARE THE MOST POPULAR TYPE OF EXITS ACROSS THE

PRODUCT-INNOVATION FRAMEWORK.
Yearly global count of exits in the last 5 years by type across product-innovation framework
Acquisition Merger IPO SPAC
IPO SPAC
Digital
5.4% 7.1%
SPAC
20.0% Merger
4.4%
IPO Acquisition Acquisition

20.0% 60.0% 83.0%
SPAC SPAC
18.9% 8.8%
IPO Acquisition
Acquisition 17.5%
IPO 50.0% 71.4%
27.8%
Physical
Merger
Merger
3.3%
2.3%

HERE ARE TEN NOTEWORTHY EXIT DEALS IN 2023, FROM ACROSS

THE WORLD.
Company Deal Type HQ Country Description Read More
ACQUISITION CANADA Acquired by U.S-based Occidental Petroleum for $1.1B
ACQUISITION CANADA Acquired by Germany-based Infineon for $830M
ACQUISITION UNITED STATES PE firm Northleaf Capital Partners acquired a controlling stake
ACQUISITION UNITED STATES Acquired by U.S-based Genera
SPAC CANADA Business combination with Bite Acquisition Corp.
ACQUISITION GERMANY Acquired by U.S-based Redwood Materials
ACQUISITION UNITED STATES Acquired by U.S-based Ford Motors
ACQUISITION UNITED KINGDOM Acquired by U.K-based OVO Energy
ACQUISITION UNITED STATES Acquired by Denmark-based Danelec
ACQUISITION UNITED STATES Acquired by U.S-based Uplight
2
STATE OF CLIMATE TECH '23 | CORPORATIONS p.111
KEY
CORPORATIONS TAKEAWAYS
Corporate investments are concentrated in energy, food
CORPORATES REMAIN LOYAL and agriculture, and transport, despite a slight decrease in
TO FUNDING KEY SECTORS funding in some of these sectors.
Amidst changing market dynamics and challenging

CORPORATE RESILIENCE funding times, corporations exhibit resilience and
SHINES IN CLIMATE TECH M&A sustained activity in Climate Tech M&A.
Energy, industrials, and IT emerge as the predominant

ENERGY, INDUSTRIALS AND IT sectors among corporate acquirers, showcasing their
LEAD CORPORATE ACQUIRERS strategic focus and interest in climate tech organizations.
2 CORPORATIONS
global funding participated by corporations
m&a performance
STATE OF CLIMATE TECH '23 | CORPORATIONS_FUNDING p.113
CORPORATIONS REMAIN ACTIVE IN CLIMATE TECH FUNDING,

WITH A GREATER FOCUS ON LATER STAGE DEALS.
Yearly global funding and deals participated by corporations by equity stage
Later stage
Pre-seed and seed Early stage Later stage Deals
$35B
$30B
$25B 827 674
Early stage
$20B 680
380
$15B
309
$10B
Pre-seed and seed

$5B
$0B
2019 2020 2021 2022 2023
Share of deals participated by corporations by challenge area

CORPORATIONS KEEP 2019 2020 2021 2022 2023
RENEWING THEIR FUNDING
INTEREST IN ENERGY AND energy 23,6% 19,4% 21.9% 22.8% 23.5%
INDUSTRY. industry
8,3% 9,5% 7.8% 10.2% 12.7%
transport 14,8% 16,1% 16.0% 13.7% 13.1%
food and agriculture 15,0% 20,9% 18.4% 15.5% 14.2%

In 2023 corporations have shown
reduced interest in food and Circular economy 12,1% 11,6% 11.4% 12.1% 11.6%
agriculture, transport, and circular
economy although maintaining a built environment 8,3% 5,0% 5.2% 4.4% 5.6%
relevant positioning on these
challenge areas compared to other natural environment 2,1% 2,4% 2.5% 3.1% 4.2%
investor types.
emissions control 1,6% 2,6% 3.7% 4.2% 4.8%
GHG Capture, removal and Storage 2,1% 2,2% 2.4% 2.9% 4.0%
Water
3,5% 1,5% 2.2% 1.2% 2.7%
exits and post-exit financing. An organisation can fall into multiple categories, potentially being counted more than once.
For more details about the climate change challenge areas methodology, please refer to the section at the beginning of the report.
HERE ARE THE TOP 10 VENTURE DEALS PARTICIPATED BY CORPORATIONS IN 2023,

FROM ACROSS THE WORLD.
Company Amount HQ Country Tags Deal Type Corporations Read More
$1.6B SWEDEN #Green Steel PRIVATE PLACEMENT Hitachi Energy, Schaeffler
$1B UNITED STATES #Battery Material Recycling SERIES D Microsoft
$900M FRANCE #Energy Storage #Battery-tech SERIES C Macquarie, Renault, Sibanye-Stillwater
$750M CHINA #Electric Vehicles SERIES A CATL
$626M CHINA #Energy Storage #Battery-tech SERIES C CDI Energy
$460M UNITED STATES #Battery Materials SERIES D Hitachi Ventures, Tenaska, BHP
$415M CHINA #Electric Vehicles SERIES B Changan International
$380M UNITED STATES #Hydrogen Electrolyzers SERIES C Equinor, Mitsubishi, Microsoft, Rio Tinto
$325M SWITZERLAND #Renewable Fertilizers GROWTH EQUITY Macquarie
$300M UNITED STATES #Energy Storage #Battery-tech SERIES B BMW I Ventures

THOUGHT LEADER
SPOTLIGHT
Q: Can you please share your vision and goals for climate tech investments? Gonzalo Galido
Head of Cemex
A: As the corporate venture capital and open innovation unit of Cemex, one of the world's leading
Ventures
building materials and construction solutions companies, we opened our doors in 2017 to scout
and invest in solutions that promote sustainable construction and advance the decarbonization
With over 30 years of experience in the building
goals of our industry, as is reflected by our Green Construction investment pillar. In terms of trends materials industry, Gonzalo helps promote the
across the industry, what stands out is that despite overall venture capital funding, which suffered construction revolution by working with Contech
an enormous hit in the last year, investment in Cleantech solutions within the built environment startups, entrepreneurs, universities, and other
increased by 33%. The data affirms the industry's commitment to decarbonize the built entities interested in the industry. His focus is on
finding innovative business models for the
environment through promising initiatives, such as CCUs, alternative fuels, circular business
construction industry, and helping propel
models, and more efficient water consumption. Nevertheless, cooperation between different innovation, sustainability, and digitization in the
stakeholders is the only way to address humanity's critical climate challenge in a complex and built sector that leads to more collaboration and
interconnected industry such as construction. less fragmentation.
Thanks to Gonzalo and his team at Cemex

Ventures’ work, he’s been named one of the most
relevant investors in the construction ecosystem
for 4 years running.
2 CORPORATIONS
global funding participated by corporations
m&a performance
STATE OF CLIMATE TECH '23 | CORPORATIONS_M&A p.118
IN 2023, CORPORATIONS HAVE BEEN INCREASING THEIR

PARTICIPATION IN MERGERS AND ACQUISITIONS.
Share of global acquisitions
Corporations Other Acquirers

100%
80%
60%
Corporations remain actively involved in the ongoing
shopping trend in climate tech, increasing their position 40%
to 80.5% of total acquisitions made in 2023, which
reflects their sustained commitment towards a more 20%
sustainable and resilient future.
0%
2021 2022 2023
GICS FRAMEWORK GICS

FRAMEWORK
GICS, standing for Global Industry Classification Standard, is an Energy

industry classification methodology offered by S&P Down Jones
Materials
Indices and MSCI. To align with market changes, this alternative
classification system introduced a market-oriented perspective Industrials
while remaining still rooted in the microstructure of industries (1).
Consumer discretionary
Considering the specificities of the climate tech market and the Consumer staples
profile of corporations investing in it, a minor adaptation to GICS was
made. Under the energy sector (2), a sub-industry for renewable Health care
energy equipment & services was added. This addition Financials

complements existing sub-industries related to Oil and gas present
Information technology
in the framework.
Communication services
This classification intended to allow a more comprehensive
Utilities
understanding of the profile of corporations that are involved in M&A
activities in the Climate Tech space. Real estate
(1) S&P Global Market Intelligence | MSCI (2018). Global Index Classification Standard
(2) https://www.spglobal.com/spdji/en/landing/topic/gics/.
2023 TOP ACQUIRERS IN CLIMATE TECH BELONG TO THE SECTORS

OF IT (23.7%), INDUSTRIALS (21.7%) AND ENERGY (16.2%).
Sector 2023 Acquirers Industry group Industry
energy equipment renewable energy equipment & services

Energy 16.2%
& services (100.0%)
(84.4%) industrial conglomerates
Materials 6.1%
capital goods (14.3%)
(48.8%) electrical equipment
Industrials 21.7%
transportation (14.3%)
(30.2%) building products
Consumer discretionary 5.6% (14.3%)
food, beverage & ground transportation
Consumer staples 13.1% (100.0%)
tobacco
(92.3%) food products
Health care 0.5%
(100.0%)
Financials 3.0%
software & services software
Information technology 23.7% (78.7%) (83.8%)
Communication services 0.00%
independent power and renewable
10.1% utilities electricity producers
Utilities
(100.0%) (50.0%)
Real estate 0.00%

The figures illustrate exit activity- mergers and acquisitions of private climate tech ventures, while excluding venture and post-exit financing.
2023 ACQUISITIONS Acquirer sector Acquiree challenge area
PATTERNS Energy 18%

Energy 25%
Industrials 9% Emissions control, reporting and offsetting 5%
GHG capture, removal and storage 2%

Built environment 6%
Transport 19%
Information
technology
23%
Circular economy 12%
Utilities 10%
The match between acquirer
Industry 9%
sector and acquiree challenge
area shows that energy, Materials 6%
Food and agriculture 16%
transport and food and Consumer
agriculture are among the discretionary 6%
preferences of organisations Financials 3%
acquired by corporations. Water 5%
Consumer staples Natural environment 1%
11%
Consumer goods 0,4%
Autogrid 0,4%
Health care 0,4%
EXAMPLES OF DEALS MATCHING THE TOP ACQUISITION FLOWS

AMONG ACQUIRER SECTOR AND ACQUIRED CHALLENGE AREA.
Acquired Company Challenge Area HQ Country Acquirer Corporation Acquirer Sector HQ Country Read More
ENERGY UNITED KINGDOM INFORMATION TECHNOLOGY UNITED KINGDOM
TRANSPORT UNITED STATES INDUSTRIALS UNITED STATES
TRANSPORT FRANCE INDUSTRIALS FRANCE
ENERGY + TRANSPORT+
DENMARK ENERGY UNITED KINGDOM
CIRCULAR ECONOMY
ENERGY DENMARK ENERGY GERMANY
TRANSPORT GERMANY ENERGY SWITZERLAND
Acquirer sector Acquiree sector

2023 ACQUISITIONS
PATTERNS Energy 15%
Financial services 8%
Bioeconomy 9%
Industrials 17%
Consumer goods 11%

Matching acquirer and acquiree Mobility 9%
sectors reveals that corporations, Information technology 21% Maritime
beyond general information
technology companies, opt to
strengthen their market positioning
by merging or acquiring Electricity 24%
organisation operating in their core Utilities 10%
business. Food and beverage 10%
Recycling 2%
Materials 9% Agriculture 4%
Packaging and packing 1%
Consumer discretionary 6% Logistics 4%
Heating & cooling 4%
Financials 3% Construction 1%
Petrochemical & plastic 2%
Consumer staples 19% Paper & pulp 0%
Health 0%
Extraction & mining 1%
Reverse logistics 1%
Textile & fashion 1%
Glass & ceramic 0%
Metal & metallurgy 0%
CORPORATIONS INVOLVED IN TWO OR MORE CLIMATE TECH ACQUISITIONS IN 2023.
Corporation Corporation HQ Acquired Company Company HQ Read More
UNITED STATES
* UNITED STATES UNITED STATES
UNITED STATES
SPAIN
GERMANY
NETHERLANDS
FRANCE
FRANCE
GERMANY
NORWAY
UNITED STATES
UNITED STATES
INDIA
INDIA
INDIA

*Last year, Superlatus Inc got acquired byTRxADE HEALTH, Inc.
THOUGHT LEADER
SPOTLIGHT
Q: What motivates corporations to pursue acquisitions instead of other available approaches?

Bas Hendriks
A: Corporations often opt for acquisitions when they lack the internal capabilities, such as talent Director
and resources, needed to develop certain types of solutions, particularly in the case of digital
solutions. For large corporates, another aspect is to build sales channels to SME customers.
Building relationships with SMEs can be challenging for large corporations, and acquiring smaller Bas advises his clients and partners through
companies provide an entry point into these markets. Additionally, corporate innovation complex cross-border private placement and
processes are not as agile as those in smaller companies. Therefore, acquiring innovation is often M&A deals and is focused on finding the best
viewed as a less risky and more efficient strategy for corporations compared to developing it in- partners for his clients. Furthermore, he takes a
keen interest in guiding management teams
house. and shareholders to achieve their Energy
Transition ambitions.
Q: What are the current challenges and significant changes in the general M&A activity and Bas’s dedication to his work, clients, and partners
processes? was officially recognised when he was
nominated as the Young M&A Talent of the year
by the Dutch M&A Community in 2019.
A: M&A is gaining momentum, but financial considerations (e.g. path to profitability) remain
crucial. Additionally, transaction processes take longer and more discussions around business
plan projections and downside protection take place. Potential acquirers are more careful about
when and how to deploy capital, closely scrutinizing the fundamentals of the companies in which
they plan to invest.
THOUGHT LEADER
SPOTLIGHT
The message for entrepreneurs is that although the past year may have been challenging, the IMPROVED is a global corporate finance boutique
end game of the energy transition remains unchanged. In the long term, there is a market with focused on the mid-market Technology, Energy and
fixed needs that must be addressed. This recognition extends to corporates, investors, and society Mobility (“TEM”) sectors. The firm has the industry’s
at large. So, entrepreneurs should actively participate in the game, provided they have clear proof largest team of E-mobility and Energy Transition
points demonstrating both environmental and financial impact. dealmakers, with unique market insights and a
strong understanding of investor strategies in the
sector.
Q: How do you perceive the current M&A activity of Oil and Gas companies, and do you consider
they are making now more radical bets on Climate Tech companies compared to the previous IMPROVED has worked with reputable entrepreneurs,
years? investors and corporates across the TEM sectors,
and is well-equipped to support entrepreneurial
A: Some Oil and Gas companies recently shifted their focus away from retail activities and management teams and investors in landmark
showing increased interest in solutions closer with their core business, such as carbon capture, cross-border transactions.
biofuels, or hydrogen. Corporations in this sector are more inclined to invest in solutions that
closely align with their original core business, enabling them to take certain risks and commit to
capital-intensive projects. This comfort is further facilitated by their ability to readily perceive and
evaluate the longer-term impacts, as evidenced by investments in carbon capture technologies.
The long-term strategies of Oil and Gas corporations are currently influenced by regulations,
global events such as the agreements made in COP28, and evolving consumer behavior.
p.xx
THOUGHT LEADER
SPOTLIGHT
Q: What are your thoughts on the future, specifically regarding the profile of the acquirer and the
types of M&A strategies that will become more prominent?
A: Certain parts of the climate tech market appears to be fragmented, while tech companies
continue to mature and often possessing complementary technologies, targeting different
geographies, or addressing specific markets. Therefore, I anticipate an increase in buy-and-build
strategies in the coming years backed by financial sponsors. In addition, we’ll continue to see
strategic activity from industrial players, software vendors, and energy players.
3
STATE OF CLIMATE TECH '23 | INVESTORS p.129
KEY
INVESTORS TAKEAWAYS
Venture investors have a clear preference on digital type
VENTURE INVESTORS FAVOR of solutions, funding them regardless breakthrough or
DIGITAL SOLUTIONS innovation.
Non-equity investors are not only intensifying their funding

THE SURGE OF NON- efforts but are also gaining prominence, particularly in
EQUITY INVESTORS later-stage deals.
Governmental funding is assuming an ever-growing

PUBLIC FUNDING, significance in shaping current climate tech dynamics,
GROWING IMPACT particularly fostering breakthrough innovations.
3 INVESTORS
overview
pre-seed and seed
early stage
later stage
GROUP OF INVESTORS
INVESTORS TYPES TYPES
To compare investor types and better understand their investment

activity in Climate Tech, we have created six groups that cluster
investors based on their profile and funding activity.
Venture investors
Venture investors: include venture capital firms, accelerators and
Growth equity investors
incubators, angels, angel groups and family offices
Growth equity investors: include private equity firms, asset managers Banks
and investment companies
Banks: include investment banks, commercial banks and merchant Corporations
banks
Corporations: include corporations, corporate venture capital, insurance Governments
companies and holding companies
Governments: include governments and sovereign wealth funds Others
Others: all other types not included in other investor groups
GOVERNMENTS ARE THE ONLY INVESTOR TYPE EXHIBITING

POSITIVE YOY GROWTH IN FUNDING IN 2023 (+47.3%).
Yearly global funding by investor type

2023 YoY -50.0% -51.2% -35.2% -41.2% +47.3% -44.4%
Venture investors Growth equity investors Banks Corporations Governments Others

100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
A deal can be participated by multiple investors, potentially being counted more than once.
exits and post-exit financing. For more details about the investor group methodology, please refer to the beginning of the Investors section.
BANKS AND GOVERNMENTS HAVE THE HIGHEST SHARE OF

FREQUENT INVESTORS. EQUITY INVESTORS’ INCREASE IN 2023 YOY.
Share of frequent investors that participated in at least 3 deals in a year by investor type
2019 2020 2021 2022 2023
Venture investors 55.9% 55.8% 48.2% 46.8% 49.7%
Growth equity investors 55.5% 60.8% 51.5% 46.7% 51.5%
Banks 84.6% 77.6% 66.3% 64.9% 61.1%
Corporations 58.1% 59.3% 50.6% 49.5% 47.3%
Governments 75.3% 75.0% 62.4% 66.0% 68.1%
Other 44.7% 49.7% 40.1% 41.4% 42.5%
THE NUMBER OF NEW INVESTORS IN CLIMATE TECH HAS BEEN

DECREASING SINCE THE PEAK IN 2021.
Yearly number of first-time investors in climate tech globally
5,000
4,337
3,996
4,000
3,254
3,000 2,915
2,576
2,000
1,000
0
2019 2020 2021 2022 2023
ALL INVESTOR TYPES BRING NEW PLAYERS, WITH BANKS AND

CORPORATIONS SHOWING THE HIGHEST YOY VARIATION.
Percentage of first time climate tech investors by investor type

100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
THOUGHT LEADER
SPOTLIGHT
Q: Why is climate tech an area that traditional VC can't afford to ignore, even during times of
global downturns? Magda Lukaszewicz
Principal
A: Because there are huge opportunities investing in the best companies in the space, and some
of the smartest people in the world decide to dedicate their lives to solve climate challenges.
Magda joined Balderton in 2018 and is a principal
in the investment team. At Balderton, Magda is
Q: 2023 was the year of AI. What are the most interesting opportunities arising at the intersection focused primarily on investment activities in the
Nordics with a strong interest in climate,
of AI and climate tech?
marketplaces and consumer. Magda is also part
of the team at Balderton responsible for driving
A: I see many interesting opportunities in AI and bio – for example better prediction of outcomes the firm's Sustainable Future Goals initiatives. Prior
in experiments. In synbio, AI can help with faster and more precise engineering of to Balderton, Magda spent three years at
microorganisms, driving down cost and timelines for innovation. Goldman Sachs
THOUGHT LEADER
SPOTLIGHT
Q: What unique challenges do climate tech founders encounter when raising capital from VC, Balderton Capital is a multistage venture firm with
compared to other industry verticals? more than two decades of experience supporting
Europe’s best founders from Seed to IPO. Balderton
A: Many impactful companies have some form of physical touch points. Either production of has both early and growth funds and invest across
products or heavy operations (common for marketplaces), which are generally harder to scale the technology sector, including climate. Baldertons
than pure software companies and might have longer timelines. Additionally, climate is often climate investments include: Sweep, Sylvera,
close to infrastructure, which is political and driven by regulatory changes - however in fintech Tessaract, Tibber & Uncommon Bio.
that has also created big opportunities. Having thorough answers on size of the opportunity vs
capital needs, regulation and timelines are important in a fundraising context.
Q: In 2024, is it comparatively "easier" for a climate tech company to secure capital compared to
a non-climate-focused one?
A: If you have two companies that are exactly the same, and one is well positioned in the climate
space, they will most likely attract a larger potential investor base.
But the answer is a lot more complicated, it depends from who. We have seen a number of new
climate specific funds be announced in the recent years, which has created a bit of an own
ecosystem with climate focused LPs, climate focused GPs and climate founders, but also the
impact ecosystem investing in climate – and not all funds have the same return targets.
FUNDING FOR THE ADOPTION OF PHYSICAL SOLUTIONS EXHIBITS

SIGNIFICANT CAPITAL STACK DIVERSIFICATION.
Global funding in the last 5 years by financing type

Other Grant
Grant 0.8% 1.2%
Digital
3.1% Other
Debt 3.0%
Debt
4.0% 10.9%
Equity Equity
92.0% 84.8%
Other
1.7%
Grant Grant Other
9.1% 3.2% 6.7%
Debt Debt
6.9% 17.3%
Equity Equity
72.8%
Physical
Equity 82.3%
Debt
Grant
Other
VENTURE INVESTORS STEP BACK IN PHYSICAL SOLUTIONS, WHILE

GROWTH EQUITY, CORPORATIONS, AND BANKS THRIVE.
Share of global funding participation by investor type in the last 5 years in the PI framework
Banks
Digital
Banks 3.1%
2.0% Governments
Growth equity Governments Corporations 1.7%
14.3% 1.5% 17.4%
Corporations Venture investors Venture investors
17.6% 64.5% Growth equity 57.7%
20.1%
Governments Governments
3.7% 2.4%
Banks Banks
Growth equity 2.8% 11.0% Venture investors
19.2% 33.9%
Corporations
Venture investors 23.2%
Corporations 52.3%
Physical
22.1% Growth equity
29.5%
INVESTORS FAVOR ADOPTION IN ENERGY AND TRANSPORT, WITH A

BUSIER-THAN-EXPECTED SCENE IN PHYSICAL BREAKTHROUGHS.
Investors who participated in $70m+ deals in the last 5 years
89 investors 1,199 investors
Digital
Transport Energy
Energy Natural environment Food and agricu…
Transport Circular econ…
Industry
Built envir…
Industry Emissions control, repo…

Natural…
899 investors 2,404 investors
Circular economy
Circular economy Industry
Natural…
Energy Industry Food and agri… Transport Energy Transport
GHG capt…
Water
Physical
GHG ca…
Food and agriculture Built envi…
Wat…
Buil… Em… Nat…
Emi…
ventures, covering equity, debt, grants, and other financial instruments, while excluding exits and post-exit financing. For more details about the PI framework
methodology, please refer to the section at the beginning of the report. An organisation can fall into multiple challenge areas, potentially being counted more than
once. For more details about the climate change challenge areas methodology, please refer to the section at the beginning of the report.
ENERGY ATTRACTS THE LARGEST INVESTOR BASE, WHILE

INTEREST IN INDUSTRY AND WATER IS ON THE RISE.
2023 investors by climate change challenge area YoY variations in number of investors

1,477 Industry +15.3%
Industry Water +6.4%

Industry
1,406
Food and agricultu…
Built environ…
Water Built environment -8.4%

315 Water Built environment
763 Energy -8.6%
Circular
Energy -10.0%
Energy economy
Circular economy Emissions control, reporting & offsetting
2,220
GHG capture 1,512
365 Transport -13.0%
-16.3%
GHG ca…
Circular economy
Natural en…
Natural
Transport
Transport GHG capture, removal & storage -19.1%
environment
Emissions control Emissions co…
1,482
504
802 Food and agriculture -33.0%
ventures, covering equity, debt, grants, and other financial instruments, while excluding exits and post-exit financing. An organisation can fall into multiple
challenge areas, potentially being counted more than once. For more details about the climate change challenge areas methodology, please refer to the section
at the beginning of the report.
VENTURE INVESTORS DOMINATE ACROSS CHALLENGE AREAS,

ESPECIALLY IN NATURE AND EMISSIONS CONTROL.
2023 global investors by investor type in each challenge area

Emissions control,
Energy Transport Built Environment Industry
reporting & offsetting
GHG capture, removal

Water Natural environment Circular economy Food and agriculture
& storage
A deal can be participated by multiple investors, potentially being counted more than once. For more details about the investor group methodology, please refer
to the beginning of the Investors section. The figures illustrate funding and deal activity in private climate tech ventures, covering equity, debt, grants, and other
financial instruments, while excluding exits and post-exit financing. An organisation can fall into multiple challenge areas, potentially being counted more than
once. For more details about the climate change challenge areas methodology, please refer to the section at the beginning of the report.
INVESTORS FAVOR OPERATING WITHIN FAMILIAR MARKETS.
US investors European investors
Deals participated by US investors Deals participated by European investors

by organisations’ HQ continent by organisations’ HQ continent
US Rest of North America Europe Africa Asia Europe North America Africa Asia
South America Oceania South America Oceania
6,000 5,000
5,274
5,164 4,128
5,000 4,000 3,612 3,563
4,000 3,774
3,225 3,000
2,406
3,000
2,023 2,000 1,661
2,000
1,000
1,000
0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
A deal can be participated by multiple investors, potentially being counted more than once. The figures illustrate funding and deal activity in private climate tech ventures, covering
equity, debt, grants, and other financial instruments, while excluding exits and post-exit financing.
THOUGHT LEADER
SPOTLIGHT
Q: Software stands as a potent catalyst for accelerating the widespread adoption of proven climate
technologies on a larger scale. What are the most readily available opportunities, both economically Moritz Jungmann
feasible and environmentally impactful, waiting to be seized? Partner
A: In general electrification is picking up speed. Many renewable and clean technology resources
have been successfully deployed, installed, and connected. In Germany alone 16GW of solar capacity
Moritz is a seasoned Investment Partner in the
was added in 2023 with further growth expected in the coming years. Existing solutions have shown
field of clean tech, smart city and industrial
that they can potentially reduce greenhouse gas emissions by more than 50% when fully optimized. technology solutions and leads the collaboration
As a result, significant opportunities lie within the integration and optimization layer. interface at FEV with strategic limited partners.
Moritz has gained entrepreneurial experience as
1. Energy Management Systems for Residential and Commercial Customers: a founder of two bootstrapped companies after
graduating from Zeppelin University as M.Sc. in
Applications like Energy Management Systems (EMS) and Home Energy Management Systems
Public Management and International Relations.
(HEMS) give consumers in both residential and commercial buildings the ability to adjust their energy
usage based on real time changes in demand, supply, generation and storage. This sector has Moritz is an impact and performance driven
received strong support over the past 24 months. person, who has been with the organisation for 4
years, while originally being from Mannheim, he
lives and works today in Berlin. Moritz holds
2. Energy Management Systems for Semi-Public Infrastructure: board/observer seats at Skenario Labs, Hololight,
This involves providing access to energy storage or charging solutions that are privately owned to Hubject and eSmart Systems.
different user and customer groups. Enabling semi-public infrastructure will have a crucial impact on
the acceleration on electrified modes of transport.
THOUGHT LEADER
SPOTLIGHT
Q: While software plays a pivotal role, not all emissions can be completely eliminated through its Future Energy Ventures is a leading global venture
means alone. What structural adjustments in the typical VC model are required to facilitate capital firm investing in the energy transition. Set up
substantial investments in such solutions on a larger scale? in 2016, it invests in digital and digitally-enabled
technologies and business models that have the
A: There are two obstacles that need to be addressed. Firstly hardware projects require founders potential to shape the future energy landscape with
with experience who can create project plans taking into account the complexities involved in a strong focus on decarbonization.
development, production and distribution. Secondly the timeframes for these projects extend
beyond the 6-7 year holding period that VCs usually target, demanding a patient approach.
To overcome these constraints, startups focused on hardware need to shift towards a patient
Limited Partner (LP) base. Entities such as Family Offices, impact focused strategy funds and
public instruments are better suited to provide the support and understanding required for these
projects.
This patient capital allows for an assessment of project timelines and aligns, with the nature of
successfully implementing large scale climate solutions that heavily rely on hardware
components.
THOUGHT LEADER
SPOTLIGHT
Q: How crucial are public funding and debt financing in empowering founders of breakthrough
solutions to validate and implement their innovations on a grand scale?
A: Patient capital like public funding play a key role (as mentioned above) in driving the
development of groundbreaking solutions. But they always need private capital that mirrors such
efforts. Long term commitments from LP > 10 years are as of today rather unattractive same goes
for debt financing for startups as the high interest environment is too expensive. There might be a
need to overcome the obstacles through creating incentive scheme for private capital being
invested over longer periods.
Q: What transformations can we anticipate in the climate VC market by the end of 2024?
A: I don’t believe in any big transformations this year. It will be interesting to see if there are further
consolidations happening on investor as well as company level. Overall, I believe deal count will
recover and see a steady incline, growth rounds will start picking up in the 2nd half of 2024 after
public funding scheme are driving sales traction. IPO window in Europe will stay closed in 2024.
3 INVESTORS
overview
pre-seed and seed
early stage
later stage
STATE OF CLIMATE TECH '23 | INVESTORS_PRE-SEED AND SEED p.148
FEWER INVESTORS IN PRE-SEED AND SEED DEALS, BUT

CORPORATES RESILIENT SINCE THE 2021 BOOM.
Investors that participated in at least one pre-seed and seed stage deal

3,000
2,481 2,504
2,500
2,045
2,000
1,617
1,500
1,279
1,000
500
0
2019 2020 2021 2022 2023
The figures illustrate funding activity in private climate tech ventures, covering equity, debt, grants, and others while excluding exits and post-exit financing. A deal
can be participated by multiple investors, potentially being counted more than once. For more details about the investor group methodology, please refer to the
beginning of the Investors section.
PRE-SEED AND SEED INVESTORS FOLLOW FUNDING DOWNTURN, WITH EUROPE STANDING OUT
AS THE MOST RESILIENT IN ATTRACTING INVESTORS IN 2023.
Pre-seed and seed investors by investee HQ continent
EUROPE
43.99%
-14.8% YOY
NORTH ASIA
AMERICA 14.86%
32.82% -21.7% YOY
-27.0% YOY
AFRICA
2.75%
-19.3% YOY
OCEANIA
SOUTH AMERICA 4.19%
1.40% -11.5% YOY
-52.0% YOY
Figures refer to the number of investors that have made at least one investment in 2023. The figures illustrate funding activity in private climate tech ventures,
covering equity, debt, grants, and others while excluding exits and post-exit financing. A deal can be participated by multiple investors, potentially being counted
more than once. For more details about the investor group methodology, please refer to the beginning of the Investors section.
SHARE OF VENTURE INVESTORS GREW IN 2023 ACROSS ALL

CONTINENTS.
Last 5 years share of pre-seed and seed deals 2023 share of pre-seed and seed deals
by investor type and continent by investor type and continent
Venture investors Growth equity investors Banks Venture investors Growth equity investors Banks
Corporations Governments Corporations Governments
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
North South North South
Europe Africa Asia Oceania Europe Africa Asia Oceania
America America America America
THE MOST ACTIVE PRE-SEED AND SEED STAGE INVESTORS

GLOBALLY IN 2023.
Investor Deals Participated Investor type HQ country
16 Venture Capital UNITED STATES
10 Venture Capital SINGAPORE
9 Venture Capital NORWAY
3 INVESTORS
overview
pre-seed and seed
early stage
later stage
STATE OF CLIMATE TECH '23 | INVESTORS_EARLY STAGE p.153
ALL INVESTOR TYPES EXPERIENCE A YEAR-OVER-YEAR DECLINE IN

PARTICIPATION IN EARLY-STAGE DEALS.
Investors that participated in at least one early stage deal

3,000 2,959
2,596
2,500 2,463
2,000
1,641
1,500
1,290
1,000
500
0
2019 2020 2021 2022 2023
2023 EARLY STAGE INVESTORS FOLLOW PRE-SEED AND SEED WITH A GREATER INTEREST
IN EUROPEAN ORGANISATIONS.
Early-stage 2023 investors by investee HQ continent
EUROPE
42.88%
-14.8% YOY
ASIA
NORTH AMERICA
14.16%
35.81% -21.7% YOY
-27.0% YOY
AFRICA
2.16%
-19.3% YOY
OCEANIA
SOUTH AMERICA 3.42%
1.57% -11.5% YOY
-52.0% YOY
NO SIGNIFICANT EVOLUTIONS IN THE SHARE OF INVESTOR

PARTICIPATION BY INVESTOR TYPE IN 2023 EARLY-STAGE DEALS.
Last 5 years share of early stage deals 2023 share of early stage deals
by investor type and continent by investor type and continent
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
THE MOST ACTIVE EARLY STAGE INVESTORS IN 2023.
18 Investment Bank FRANCE
THOUGHT LEADER
SPOTLIGHT
Q: What are the typical challenges faced by early-stage climate breakthrough startups?
A: One of the primary hurdles confronted by early-stage climate hardware startups is the
Nadav Steinmetz
Co-founder &
substantial capital required to achieve meaningful scale. Unlike software startups, developing
and scaling physical solutions demands significant investment. The transition from the laboratory Managing Partner
to the industry poses a perennial challenge, involving the shift from Technology Readiness Level
(TRL) 4 to 5. While proving technology in a controlled lab environment is one aspect,
Nadav Steinmetz is an early stage climate tech
demonstrating its efficacy in real-world conditions is an entirely different undertaking. investor based in London. He has been an
The time to commercialization is often prolonged due to extended Research and Development investor for the last decade, focused on climate
(R&D) periods. In addition, entering expansive markets such as energy, manufacturing, and tech for the last four years. He is the Co-founder
materials necessitates an in-depth understanding of market dynamics. The challenges faced by and Managing Partner of Climate First, a leading
climate tech platform dedicated to scaling and
climate tech startups encompass financial, operational, technological, and regulatory aspects, commercializing climate innovations. Nadav is
with the specific nature depending on factors like stage, geography, sector, and strategy. also the founder and CEO of Nomea, an early
Successful navigation of these challenges positions climate tech startups not only to make a stage climate tech fund focused on funding
significant impact on environmental issues but also to evolve into billion-dollar enterprises. disruptive technologies across the UK, Europe
and Israel that will advance the world’s transition
to a net zero economy. Nomea backs
extraordinary entrepreneurs developing the next
generation of climate technologies, and helping
them develop into highly profitable and
impactful enterprises.
THOUGHT LEADER
SPOTLIGHT
Q: What factors make climate breakthrough solutions less attractive from a VC standpoint? Climate First is a leading accelerator for climate
tech startups based in London, UK and Tel Aviv,
A: Investing in climate breakthroughs is the biggest investment opportunity of our lifetime. Israel. The mission of Climate First is to reduce
Nevertheless, certain factors might still make climate tech seem less appealing from a VC global emissions by at least 1%, or alternatively 400
standpoint. The perceived technological risks associated with scientific innovations and the million tons of CO2e. Climate First supports
challenges in validating these technologies, coupled with the high capital requirements of some exceptional climate tech companies that have
companies, may create hesitancy among investors. significant decarbonization potential to scale their
Basand
operations advises hismarket
go to clients faster.
and partners
Our robust
The extended time to market and commercialization, primarily due to Research and Development
through complex cross-border
program provides start-ups access to deep-tech
deals
(R&D), may not align with the fund's structure, reflecting a shorter-term mindset and expectations
and is focused on finding the best
of investors. However, the potential for investors to support category-defining companies that knowledge, expertise, and a global network of
partners for our clients. Furthermore,
address global challenges remains substantial. Many of the mentioned challenges can be mentors, partners, and venture capitalists. At the
he takes a keen interest in guiding
mitigated by accessing non-dilutive capital early on, such as government funding and grants, end of each cohort, selected
management teams companies
and join us for
thereby de-risking the technology in its early stages. an intensive roadshowto in
shareholders Londontheir
achieve to meet
Energywith
leading Transition
players andambitions.
foster strategic collaborations.
Q: If you were to select a single breakthrough solution addressing the climate crisis to launch to Climate First is committed to supporting
the market tomorrow, what would be your top choice? Bas’s dedication
extraordinary companies withto hisattractive
work, clients,
business
models and
that partners
will have was officiallyenvironmental
a significant recognised
A: Nuclear fusion. Transformative technology with massive potential. impact, when he was
providing themnominated
access to aas the range
wide Youngof
resourcesM&A
andTalent of the
support yearthem
to help by the Dutchtheir
achieve
net zero M&A
goalsCommunity in 2019.
3 INVESTORS
overview
pre-seed and seed
early stage
later stage
STATE OF CLIMATE TECH '23 | INVESTORS_LATER STAGE p.160
MORE BANKS AND GOVERNMENTS INVESTED IN LATER STAGE

CLIMATE TECH IN 2023 THAN IN 2022.
Investors that participated in at least one later stage deal

1,400
1,223
1,200 1,147
1,000
864
800 693
600
423
400
200
0
2019 2020 2021 2022 2023
DESPITE A DECLINE IN INVESTOR NUMBERS, LATER-STAGE INVESTORS INCREASINGLY

FAVOR NORTH AMERICAN COMPANIES, DIVERGING FROM TRENDS IN OTHER STAGES.
Later stage investors by investee HQ continent
EUROPE
34.10%
-23.8% YOY
NORTH AMERICA
ASIA
45.10% 17.51%
-37.6% YOY
-4.5% YOY
AFRICA
0.73%
-50.0% YOY
OCEANIA
SOUTH AMERICA 1.74%
0.82% +72.7% YOY
-66.7% YOY
LATER-STAGE DEALS EXHIBIT A MORE UNIFORM CONTRIBUTION

FROM DIVERSE INVESTOR TYPES.
Share of later stage deals Share of later stage deals

by investor type and continent in the last 5 years by investor type and continent in 2023
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
THE MOST ACTIVE LATE STAGE INVESTORS IN 2023.
6 Private Equity SINGAPORE
PART 3
ASSESSING THE IMPACT OF CLIMATE TECH
ACTIVITIES ON ENVIRONMENTAL OBJECTIVE
STATE OF CLIMATE TECH '23 | ENVIRONMENTAL OBJECTIVES p.165
KEY
ENVIRONMENTAL OBJECTIVES TAKEAWAYS
Over the last five years, climate change mitigation secured
MITIGATION DOMINATES 73% of total climate tech funding. In 2023, this share
FUNDING INDISPUTED increased to 78%.
In 2023, all environmental objectives received less funding

CIRCULAR ECONOMY AND than the previous year, with circular economy and
BIODIVERSITY RESILIENCE biodiversity proving the most resilient.
In mitigation funding, the primary focus is on avoidance

MITIGATION PRIORITIZES and reduction, surpassing removal by 60 times and GHG
AVOIDANCE AND REDUCTION accounting by 24 times.
MITIGATION DOMINATES FUNDING. CIRCULAR ECONOMY AND

BIODIVERSITY SHOWING RESILIENCE IN DOWNTURN.
Yearly global funding by environmental objective
Mitigation Water Biodiversity Pollution Adaptation Circular economy
100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
The figures illustrate funding activity in private climate tech ventures, covering equity, debt, grants, and others while excluding exits and post-exit financing.
An organisation can fall into multiple categories, potentially being counted more than once.
For more details about the environmental objectives methodology, please refer to the section at the beginning of the report.
NORTH AMERICA DOMINATES 2023 FUNDING ACROSS ALL

ENVIRONMENTAL OBJECTIVES, FOLLOWED BY EUROPE.
Share of global funding in 2023 by environmental objective by continent
Africa Asia Europe North America Oceania South America

100%
80%
60%
40%
20%
0%
Mitigation Adaptation Circular economy Biodiversity Water Pollution
DEAL ACTIVITY DOMINATED BY MITIGATION YET AGAIN IN 2023.

WATER AND MARINE RESOURCES UNEXPECTEDLY FOLLOWS.
2023 count of deals by financing type
Equity Debt Grant
mitigation +560.6% 2,256 190 788
adaptation 129 9 106
circular economy 111 5 90
132 10 89
biodiversity
water 524 47 213
pollution 71 2 40
DIVERSE CAPITAL STACK ACROSS MITIGATION, WATER,

BIODIVERSITY AND CIRCULAR ECONOMY.
Share of global funding in 2023 by financing type by stage

Pre-seed and seed Early stage Later stage Pre-seed and seed Early stage Later stage
Mitigation Biodiversity
Adaptation Water
Circular economy Pollution
CLIMATE CHANGE MITIGATION COMMANDS NEARLY 80% OF

FUNDING, ESPECIALLY FOR PHYSICAL ADOPTION SOLUTIONS.
2023 funding by environmental objective

Mitigation Water Biodiversity Pollution Adaptation Circular economy
Digital
10.4%
12.0%
Adaptation
Circular economy
73.7%
1.8% 75.7%
Mitigation
Mitigation
Biodiversity
7.4% 3.2% Biodiversity
7.3%
Circular economy
Adaptation
2.0% 1.8%
Water Pollution
1.3% Pollution Water
0.6%
12.6% Circular economy
76.2% 18.2%
Circular economy
79.5%
Mitigation
Mitigation
3.1%
Physical
3.1%
Pollution
Water
3.1%
1.3% 1.0%
Adaptation
0.3%
Biodiversity
Pollution Water Biodiversity Adaptation
0.8% 0.3%
FUNDING FOR MITIGATION SIGNIFICANTLY FAVORS AVOIDANCE

AND REDUCTION INNOVATIONS.
Funding by mitigation category in the last five years 2023 YOY variations
Avoidance and reduction -16.5%
GHG
Accounting
Avoidance and $12.1B
Avoidance
Reduction an… GHG accounting -23.5%
$285.0B
Removal
$5.0B
-54.6%
Removal
SHARE OF FUNDING ALLOCATED TO MITIGATION KEEPS GROWING

EVERY YEAR. REMOVAL SHARE GROWS STEADILY.
Yearly share of global funding by mitigation category vs not mitigation
Avoidance and reduction Removal GHG accounting Not mitigation

100%
80%
60%
40%
20%
0%
2019 2020 2021 2022 2023
IN 2023, CLIMATE CHANGE MITIGATION REMAINED THE MOST

FUNDED, WITH AN INCREASED SHARE OF NON-DILUTIVE FUNDING.
Yearly funding within the climate change mitigation objective by financing type

$100B
$90.4B
$80B $77.4B
$71.3B
$60B
$40B $34.8B
$23.6B
$20B
$0B
2019 2020 2021 2022 2023
MITIGATION ENCOMPASSES ADOPTION-READY SOLUTIONS TO

BREAKTHROUGHS ACROSS EVERY SECTOR.
Word clouds for 2023 deals within the climate change mitigation objective
Top buzzwords Top sectors
THE TOP FIVE DEALS WITHIN THE CLIMATE CHANGE MITIGATION

ENVIRONMENTAL OBJECTIVE IN 2023.
Company Amount Deal Type HQ Country Tags Read More
$2B DEBT UNITED STATES #Battery Materials Recycling
$1.64B GRANT CHINA #Battery Manufacturing
$1.6B P. PLACEMENT SWEDEN #Green Steel
$1.08B G. EQUITY UNITED KINGDOM #Energy Infrastructure Solutions
$1B G. EQUITY INDIA #Renewable Energy
IN 2023, FUNDING FOR ADAPTATION EXPERIENCED A SIGNIFICANT

DOWNTURN, PLUMMETING BY 62% COMPARED TO 2022.
Yearly funding for the climate change adaptation objective by financing type

$5B
$5B
$4B $3.9B
$3B
$2.5B
$2B $1.9B
$1.2B
$1B
$0B
2019 2020 2021 2022 2023
WHILE TACKLING CRUCIAL SECTORS, ADAPTATION HARNESSES A

DIVERSE RANGE OF SOLUTIONS.
Word clouds for 2023 deals within the climate change adaptation objective
THE TOP FIVE DEALS WITHIN THE CLIMATE CHANGE ADAPTATION

$250M G. EQUITY UNITED STATES #Sustainable Agriculture Solutions
$225M SERIES D UNITED STATES #Water Treatment Solutions
$87M SERIES E UNITED STATES #Weather Intelligence Platform
$77M SERIES C BELGIUM #Biotech Agriculture Solutions
$58M SERIES D UNITED STATES #Geospatial Information Solution
CIRCULAR ECONOMY FUNDING DECLINES FOR THE SECOND YEAR

BUT REMAINS MORE RESILIENT THAN OTHER OBJECTIVES.
Yearly global funding within the transition to circular economy objective by financing type

$20B $19.6B
$17.1B
$15.3B
$15B
$11.1B
$10B
$5.6B
$5B
$0B
2019 2020 2021 2022 2023
WHILE RECYCLING EMERGES AS THE FOCUS SECTOR, THE INFLUENCE OF THE

CIRCULAR ECONOMY IS EXPANDING ACROSS VARIOUS SECTORS.
Word clouds for 2023 deals within the transition to a circular economy objective
THE TOP FIVE DEALS WITHIN THE TRANSITION TO CIRCULAR

ECONOMY ENVIRONMENTAL OBJECTIVE IN 2023.
$2B DEBT UNITED STATES #Battery Materials Recycling
$1.08B G. EQUITY UNITED KINGDOM #Battery Refurbishing Solutions
$460M SERIES D UNITED STATES #Battery Materials Recycling
$400M SERIES B HONG KONG #Waste-based Biomass
$205M SERIES D UNITED KINGDOM #Efficient Semiconductor Solutions
FUNDING FOR BIODIVERSITY PROTECTION AND RESTORATION

SHOWS MODEST BUT RESILIENT NUMBERS.
Yearly global funding within the protection and restoration of biodiversity and ecosystems objective by financing type

$1.2B $1.17B
$1B $0.96B
$0.93B
$0.96B
$0.8B
$0.6B
$0.4B
$0.27B
$0.2B
$0B
2019 2020 2021 2022 2023
FROM FORESTRY TO FINANCE, STARTUPS ARE ADOPTING

TECHNOLOGY TO FOSTER BIODIVERSITY.
Word clouds for 2023 deals within the protection and restoration of biodiversity and ecosystems objective
THE TOP FIVE DEALS WITHIN THE PROTECTION AND RESTORATION

OF BIODIVERSITY AND ECOSYSTEMS ENVIRONMENTAL OBJECTIVE
IN 2023.
$250M G. EQUITY UNITED STATES #Sustainable Agriculture Solutions
$150M SERIES B UNITED STATES #Genetic Engineering
$58M SERIES D UNITED STATES #Geospatial Information Solution
$50M P. PLACEMENT NORWAY #Sustainable Fishing
$49M EARLY VC BRAZIL #Reforestation
FUNDING FOR THE SUSTAINABLE USE AND PROTECTION OF WATER AND MARINE
RESOURCES PLUMMETED BY 62% YOY.
Yearly funding within the sustainable use and protection of water and marine resources objective by financing type

$3.5B
$3.06B
$3B $2.9B
$2.5B
$2B $1.83B
$1.5B
$1.1B
$1.02B
$1B
$0.5B
$0B
2019 2020 2021 2022 2023
STARTUPS ARE ADDRESSING THE MOST CRITICAL PROBLEMS WITH

INNOVATIVE SOLUTIONS TO PROTECT WATER RESOURCES.
Word clouds for 2023 deals within the sustainable use and protection of water and marine resources objective
THE TOP FIVE DEALS WITHIN THE SUSTAINABLE USE AND

PROTECTION OF WATER AND MARINE RESOURCES
$225M SERIES D UNITED STATES #Water Treatment Solutions
$200M G. EQUITY UNITED STATES #Wastewater Treatment Solutions
$110M G. EQUITY UNITED STATES #Water Purification Solutions
$44M SERIES C ISRAEL #Irrigation Solutions
$35M SERIES B KENYA #Aquaculture
IN 2023, FUNDING FOR THE POLLUTION PREVENTION AND CONTROL

ENVIRONMENTAL OBJECTIVE EXPERIENCED A MORE PRONOUNCED DECLINE.
Yearly funding within the pollution prevention and control objective by financing type

$5B
$4.6B
$4B $3.8B
$3B
$2.26B
$2B
$1.43B
$1B $0.93B
$0B
2019 2020 2021 2022 2023
IOT AND AI ARE TOP TECHNOLOGIES THAT ARE CONTRIBUTING TO

POLLUTION PREVENTION AND CONTROL.
Word clouds for 2023 deals within the pollution prevention and control objective
THE TOP FIVE DEALS WITHIN THE POLLUTION PREVENTION AND

CONTROL ENVIRONMENTAL OBJECTIVE IN 2023.
$139M LATE VC GERMANY #Plastic Waste Recycling
$77M SERIES C BELGIUM #Biotech Agriculture Solutions
$76M SERIES G UNITED KINGDOM #Space Debris Removal
$70M G. EQUITY ISRAEL #Waste to Bio-based Thermoplastic
$58M SERIES B CHINA #Natural Biopolymers
METHODOLOGY
& SCOPE
This report leverages data from the Net0 Platform to The report provides three essential breakdowns for data
analyze global funding for climate tech startups, analysis and insight interpretation:
scaleups, and SMEs.
Product-Innovation Framework: This approach
The analysis covers equity, debt, grants, and other enhances the analysis of the climate tech
forms of investments for funding and deals, while exits investment landscape, providing valuable insights
include acquisitions, IPOs, and SPACs. Financing rounds for specific investors and organizations to make
after an exit are not included. Our analysts meticulously informed decisions.
review each funding round, ensuring accuracy and
consistency with the scope and definitions outlined in Venture Stage Breakdown: Aligned with the product-
this report. innovation framework, this breakdown offers
innovators and investors the most relevant
The data referenced in the present report is accurate information tailored to their profiles and needs.
as of 05/01/2024. It is essential to acknowledge that
typical reporting delays may lead to potentially Capital Stack Breakdown: Encompassing equity,
incomplete information. Nevertheless, this analysis debt, and grants, this analysis offers a
offers valuable insights into the funding landscape of comprehensive understanding of the capital
the climate technology sector. structure in the climate tech sector.
ABOUT
NET ZERO INSIGHTS
Net Zero Insights is the leading data and research platform for climate tech.
Our comprehensive Net0 Platform offers climate innovation professionals

worldwide access to thousands of startups and innovative SMEs, deals, and
investors, enabling you to uncover new innovations, trends, and deals in the
ever-evolving world of climate technology.
Investors, corporations, researchers and policy-makers use our platform to

keep track of climate innovation and understand technology and financial
trends.
Let us show you how to take advantage of data to find the right climate
solutions.
Book a demo.
Follow us on LinkedIn for daily updates from the world of climate tech!
AUTHORS
CHIGOZIE UBAH FEDERICO CRISTOFORONI
RESEARCH ANALYST FOUNDER & DIRECTOR
Chigozie applies himself as a Insights Analyst at Net Zero Born as a business professional with proficiency in data and
Insights; using data as a tool to unearth the ebbs and flows in analytics, Federico co-founded Net Zero Insights to increase
mature and emerging markets. His goal is to enable global transparency in the climate tech sector. The ultimate aim of the
decarbonization - while advancing social wellbeing - by venture is to enable corporates, investors and public
focusing on technologies, business models, and financiers institutions to make more-efficient decisions related to climate
making a difference. innovation.
PRANEET DASPUTE SOFIA ESTEVES

INSIGHTS ANALYST HEAD OF MARKET INSIGHTS
Praneet is an energy engineer, thriving at the intersection of Sofia combines a background in science and engineering with
technology and insights at Net Zero Insights. Drawing from his nearly 15 years of experience in innovation and technology
experience with climate tech startups, he is committed to transfer, at academia and industry. In her role as the Head of
amplifying their impact while fostering innovation for the Market Insights at Net Zero Insights, she is focused on
advancement of a net-zero future. enhancing the impact created by climate tech innovation
stakeholders.
COLLABORATORS CONTRIBUTORS
Carolina Bentley | Proofreader Anne-Kathrin Hinze | Investment & Asset Manager, EIT InnoEnergy
Emet Zeitz | Proofreader Francesco Matteucci | Program Manager in Green Technologies,
Haya Khoury | Visual designer European Innovation Council (EIC)
Johannes Bünz | Assistant to the EIC Programme Managers, European

Innovation Council (EIC)
Rod Colwell | CEO, Controlled Thermal Resources

Adam Rauwerdink | SVP, Boston Metal
Dante Luu | Associate, Carbon Upcycling
Chetan Krishna | Head of Research and Diligence, Third Derivative (D3)

Bas Hendriks | Director, IMPROVED
Gonzalo Galido | Head of Cemex Ventures

Magda Lukaszewicz | Principal, Balderton Capital
Nadav Steinmetz | Co-founder & Managing Partner, Climate First

Moritz Jungmann | Partner, Future Energy Ventures

State of Climate Tech 2023 Net Zero Insights

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State of Climate Tech 2023 Net Zero Insights

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STATE OF

As equity took the strongest hit (-40% YoY), resourceful

The path to a net-zero economy demands readily

In 2023, funding flowed towards adoption-focused

Software has an important role to play, but the transition

The Net0 Platform provides access to thousands of

Investors, corporates, researchers and business

WHAT IS INCLUDED IN OUR DATA

By meticulously reviewing hundreds of innovations daily, we take pride

BEYOND CLIMATE ENVIRONMENTAL

Conceptually aligned with the framework of the EU taxonomy for

Our analysts classify each organisation based on their alignment with

Protection and restoration of biodiversity

KEY AREAS TO ADDRESS CHALLENGE

Centred on identifying the most pressing thematic trends in climate Energy

GHG capture, removal and storage

A NEW FRAMEWORK TO LOOK PRODUCT-

The differentiation between the physical and digital aspects of an

As the IPO window remains firmly closed and might stay

73% of total 2023 funding is allocated towards climate

DESPITE A CHALLENGING YEAR, THE FUNDING LANDSCAPE HOLDS

Yearly global funding activity by financing type

Equity Debt Grant Other

Source: Net Zero Insights

SIMILARLY, DEAL ACTIVITY IN CLIMATE TECH HAS WITNESSED AN

Yearly global deal activity by financing type

Equity Debt Grant Other Total

Source: Net Zero Insights

FUNDING SLOWS GLOBALLY, EXCEPT FOR ASIA (+19% YOY).

Global funding and deals by continent

North America Europe Africa Asia South America Oceania Deals

Source: Net Zero Insights

THE FUNDING LANDSCAPE IS PRIMARILY SHAPED BY COMPANIES

Last 5 years funding across PI framework

FUNDING DECLINES ACROSS ALL CONTINENTS BUT ASIA, WITH

FUNDING DIVERSITY ACROSS CONTINENTS GOES BEYOND

BREAKTHROUGH SOLUTIONS IN THE US SECURE OVER TWICE THE

United States Europe

$34.5B $82.6B $14.9B $61.9B

United States Europe

Source: Net Zero Insights

SHARE OF FUNDING IN ENERGY STEADILY GROWING SINCE 2020,

Share of yearly global funding by climate change challenge area

100% 10.9% 5.2%

40% 0.8% 35.3%

Source: Net Zero Insights

CIRCULAR ECONOMY, WATER AND INDUSTRY ARE THE ONLY

Food and agriculture Circular economy

Energy Transport Built environment -8.0%

Natural environment -21.4%

$14.3B GHG capture, removal & storage -51.8%

Source: Net Zero Insights

ENERGY DOMINATES DEAL COUNT. GHG CAPTURE AND NATURAL

2023 deals by financing type and challenge area

energy 778 88 362

industry 411 21 168

transport 453 68 115

food and 500 35 180

built environment 222 18 56

GHG capture, removal and storage 101 2 45

YoY funding variation

industry 53.6% -22.7 35.6%