Matt Trotter’s Post

2024: A Pivotal Year for Climate Tech Investments As we progress through 2024, the climate tech investment landscape is undergoing significant transformations, marking this year as a crucial turning point for the sector. Key Highlights: • Bankable Technologies Leading the Way: The first half of 2024 has seen an impressive wave of bankable climate technologies, securing substantial investments through large debt-structured giga-rounds. This surge in financing reflects growing confidence in the scalability and long-term impact of these technologies, particularly in sectors like electric vehicles (EVs) and energy storage. • European Leadership in Venture Financing: Europe continues to dominate climate tech venture funding, maintaining its position as a global leader. Despite a quieter second quarter for debt financing, the region has shown robust investment activity, especially in the EV and energy storage markets. However, with the U.S. providing several times more incentives through initiatives like the Inflation Reduction Act (IRA), Europe faces the challenge of closing this competitive gap. • Strategic Shifts in Investment: While the rise in debt financing is promising, there has been a noticeable decline in overall deal activity. Equity investors are adopting a cautious approach, navigating the uncertainties in regulatory environments, economic factors, and upcoming elections. This presents a more challenging environment for climate tech founders, demanding greater conviction and strategic foresight from investors. Climate tech is at a critical juncture in 2024. We’ve seen a surge in bankable technologies securing significant investments through giga-rounds, reflecting growing confidence in the sector. Europe leads in venture funding, particularly in EVs and energy storage, but faces competition from U.S. incentives like the IRA. However, overall deal activity is down as equity investors take a cautious approach amidst economic uncertainties. The focus must remain on innovation and scalability to drive the Net Zero transition. #ClimateTech #Sustainability #NetZero #Innovation #Investment #RenewableEnergy #EV #EnergyStorage #VentureCapital

Fit for purpose capital is a rapidly evolving need in deeptech solutions in climate. Strategic investors and corporates have a unique opportunity and role to play as the models for #climate investing evolves. https://lnkd.in/gU7H5QmZ

Climate tech companies have strong competition for investment. Yet the demand for innovative concepts with a high potential to effect change are in urgent demand. Our latest article from Tech Partnership looks at what climate tech firms need to do to distinguish themselves and prove they have a long-term future. https://lnkd.in/eczaC67E #climatetech #investment #greenfinance

Climate tech companies have strong competition for investment. Yet the demand for innovative concepts with a high potential to effect change are in urgent demand. Our latest article from Tech Partnership looks at what climate tech firms need to do to distinguish themselves and prove they have a long-term future. https://lnkd.in/eE5-g_uz #climatetech #investment #greenfinance

Equity funding dropped by 14% in 2024, but 80% of investors expect more money to flow into Climate Tech in the coming years. 💬 This is according to our State of Climate Tech industry survey, which shows that investors remain optimistic about the long-term potential of the industry. 🌱 Pre-seed, seed, and early-stage investors showed greater optimism compared to growth and later-stage investors. Long development timelines delaying return on investment were seen as the biggest challenges in capital development, followed by technological risks. Read more in our latest SOCT report: https://lnkd.in/eRFjQtPj #SOCT2024 #StateofClimateTech #NetZeroInsights #ClimateTech #ClimateInnovation #report

Climate tech companies have strong competition for investment. Yet the demand for innovative concepts with a high potential to effect change are in urgent demand. Our latest article looks at what climate tech firms need to do to distinguish themselves and prove they have a long-term future. https://lnkd.in/eczaC67E #climatetech #investment #greenfinance

🌍 In the ever-evolving landscape of VC and Growth, we wield influence over the trajectory of industries and economies. Yet, as investors, we face a monumental challenge - the imperative and opportunity to integrate climate strategies into our investment approach and the way we support our portfolio companies. Yet, the path to decarbonization is not without obstacles. Our industry grapples with unique challenges that necessitate innovative solutions, collaborative efforts and clear actions. We decided to release a climate guide for VC and growth investors precisely to empower VC and Growth Equity firms to embrace climate strategies in a pragmatic and realistic way, benefitting from our lessons learned in our ongoing path towards meaningful climate action. This guide serves as a roadmap, offering actionable insights and pragmatic advice to navigate the complexities of decarbonization. 👉 Check it out: https://lnkd.in/d9W6-M7b 👋 Don’t hesitate to reach out to Anaïs Blarel who led this amazing project for any question. #VC #growth #climate #tech #sustainableinnovation

📣 Great news! Unwritten (formerly Dovetail) just announced $3.5m funding to help investors and companies make financial sense of the climate transition. Until now, capital allocators have had limited tools to model the impact of the transition on their investments. Unwritten’s technology plugs this critical information gap, meaning investors can price climate opportunity and risk at a company level for the first time. Its technology gives investors a nuanced, long-term view of the impact on industries - beyond the traditional emissions-focused metrics asset managers have relied on until now. Unwritten is profiled in the Financial Times today as a new digital tool that sheds new light on climate and transition risks. Read more via the link in the comments. 🌍 Well done Amos, Phillip Marks, Ph.D. , and the whole Unwritten team! Great to support your important work, together with Connect Ventures, Adapt Nation Capital, Sand River, Cameron Hepburn and more!

Check out our latest article on the State of the Climate Tech Market where we look at recent investment data and dive into some of the current challenges and opportunities for companies and investors. We are optimistic about the continued growth in this area! Emily Townsend Amie-Louise Corry #goodwinlaw #climatetech #sustainability https://lnkd.in/e2wV2YPz

Please check out our latest article on the State of the Climate Tech Market below ⬇️ Glad to have been involved in putting this together along side my colleagues Adam Thatcher and Emily Townsend #goodwinlaw #climatetech #spotlightonclimatetech