Lorenzo Chiavarini’s Post

🌱 Today's climate tech startups face more challenges than ever in the availability and cost of capital. Venture funding has slowed down over the last year and a half, making it difficult for climate tech companies across stages to raise the necessary funds to grow. Additionally, high interest rates create a new obstacle for founders who rely on debt to finance their clean energy projects. 🎥 Video featuring Fifth Wall Investor Anastasia Istratova #climatetech #venturecapital

Climate tech startups are having a strong year supported by regulatory tailwinds, high energy prices and investment. But exits remain elusive. VC-backed climate tech deal value jumped from $2.1 billion to $8 billion quarter-over-quarter in Q1, according to PitchBook data, demonstrating growth in the vertical even putting aside H2 Green Steel‘s blockbuster $5.2 billion round. However, because of the capital-intensive hardware needs for many companies, the path to commercial scale is longer than that of asset-lite sectors. Correspondingly, exit activity in climate tech has been muted, with total exit value falling more than 50% from 2022 to 2023 to $9.3 billion. https://lnkd.in/gWtGwadn #ipo #watchlist #climate #techstartups #vcbacked #vcfunding #exits #2024

This was one of the most insightful articles I read last year. ClimateTech is booming, one of the most dynamic and sought-after verticals in VC. However, the traditional Silicon Valley SaaS funding and exit model doesn't perfectly the climate sector. Private Equity is emerging as a key player in the climate capital stack, altering traditional patterns. Here's how: 📈 IPO Alternatives While IPOs are generally cooling off across the venture ecosystem, this pattern is especially prominent in ClimateTech where there is a growing trend towards private equity exits. Given PE has been used successfully in infrastructure-heavy sectors like oil and mining, there's a natural synergy with similarly capex-intensive climate ventures. 💰 Later-Stage Investments The sector is experiencing a rise in climate-oriented PE firms providing late-stage financing alternatives. This influx, led by the likes of KKR's $8 billion European fund and Copenhagen Infrastructure Partners' $6.2 billion renewable energy fund, is critical for scaling startups and advancing their technologies. Despite this boost, ClimateTech startups face a lack of funding at the Series B "Valley of Death". This gap is a daunting hurdle for startups poised to move beyond early development. While the VC ecosystem remains in flux, the rise of PE shows an interesting evolution in the funding ecosystem. Hopefully, it's a signal towards a maturing financial landscape to support Climate ventures at every stage. #privateequity #venturecapital #climatetech

⏰ Just a couple of days left to talk to us about investing in climatetech startups through our SEIS Fund VI before it closes. Book a call with our Head of Capital Min Dhillon via our website (link in comments) and he'll talk to you about: o Your goals for your angel investments o Why you want to invest in climate impact o Opportunities to apply your experience and support to our portfolio (72 investments and counting) And cover: - Our approach to de-risking our investments - Our approach to generating scalable climate impact - Introduce some of our startups, including Ki Hydrogen, SamudraOceans, Nium, Preoptima, Materials Nexus and CBAMBOO Our SEIS Fund invests at pre-seed, but here's just a few of the VCs who've made follow-on investments into our startups: Pale blue dot, AgFunder, Octopus Ventures, High Tech Gründerfond, Unruly Capital, SOSV, DCVC, Zero Carbon Capital and Ada Ventures. Come chat with Min, link in the comments >>> Investment in Carbon13 SEIS Fund VI is restricted to Professional Clients, High Net-Worth Investors and Self-Certified Sophisticated Investors. A fuller summary of risks is available on our website. #venturecapital #seis #angelinvestment #climatetech #deeptech #ai #angels

"Is the funding landscape continuing to improve for climate tech businesses?" This week, it certainly seems so with big announcements 🔥 ➡ neustark a Swiss-based carbon removal developer announced $69 million as part of a growth funding round yesterday 💪 ➡ Climate X a London-based climate risk data company announced a $18 million Series A funding result as well 🎉 ➡ And last week CuspAI, a Cambridge and Amsterdam based search engine for materials secured $30 million in a seed round 🙌 Certainly something to celebrate IMO 👏 #startups #climatetech #funding #investment #growth #announcements

Good to see major O&G companies with record profits looking to invest in Startup Climatetech companies! "Investment in the climate-tech market remains historically high, according to PitchBook data, with VC-backed companies raising $41.1 billion across 2,312 deals in 2023." #climatetech #energy #vcfunding #cleanenergyfunding #cleanenergy

🌍📈 Navigating the Turbulence: Europe's Climate Tech Resilience in 2023! 🙌 Discover how Europe's climate tech sector stood strong amid a challenging venture capital landscape in 2023, focusing on energy, biodiversity, and savvy market moves. Despite a tough year for founders with a venture capital crunch, companies in this vital sector are catching the eye of investors and regulators alike, thanks to their innovative solutions and environmental impact. #ClimateTech #EuropeanInnovation #VentureCapital #MergersAndAcquisitions #Sustainability #Resilience #EnergySector #BiodiversityBoost Read on to unearth insights on the future of climate tech, from regulatory winds to strategic mergers, and why this field is still a beacon of hope for investors and entrepreneurs. 🔋🌱📊 🔗 [Insert link to blog post]

Big news: Announcing the Spring 2024 cohort of our Aspire Climatetech investor-engagement program! That's 16 teams dedicated to combating climate change and enhancing climate resilience. 🌍 This cohort features seasoned VentureWell Accelerator alums, including teams from the E-Team Program, ACCEL, and the Ascend Energy & Mobility Accelerator. 🚀 Over the next five weeks, these startups will undergo customized training and collaborate closely with investor-mentors to explore the due diligence process, all with the end goal of having crafted a comprehensive suite of deal room materials and a viable fundraising strategy. 📈 Explore the innovative solutions each team is building: https://bit.ly/3WZiVzl. #Climatetech #Innovation #StartupAccelerator #ClimateChange #Sustainability

🌍 Exciting News in the World of Climate Tech! 🌱 Despite the challenges, the climate-tech sector continues to shine, showcasing resilience and unwavering commitment to sustainability. In the last year, climate-tech companies raised a remarkable $51 billion in venture capital and private equity funding, spanning over a thousand deals, as reported by BloombergNEF. 🚀 While this represents a 12% decrease compared to 2022, it's important to note that this slide is significantly less severe than the 35% drop experienced by startups across all sectors, according to Pitchbook data. This demonstrates the growing importance and investor confidence in climate-focused innovations, particularly in low-carbon energy and low-carbon transport. 💡🚲 For more insights into these transformative investments and the companies leading the charge, make sure to visit the full report in the comments >>>>>>>>>> #ClimateTech #SustainableInvesting #LowCarbonEnergy #GreenTransport #VentureCapital #InnovationForSustainability