Cleantech Venture Capital Funds Paving the Way for a Sustainable Future

Cleantech venture capital funds are playing a crucial role in driving innovation and investment in sustainable technologies. These funds are investing in companies that are developing solutions to reduce carbon emissions, increase energy efficiency, and promote renewable energy.

One notable example is the Breakthrough Energy Ventures fund, which has invested in companies like Carbon Engineering and Form Energy. These companies are working on cutting-edge technologies to remove carbon dioxide from the atmosphere and develop new energy storage solutions.

Investing in cleantech is not without its risks, but the potential rewards are significant. According to a report, the global cleantech market is expected to reach $1.5 trillion by 2025, driven by growing demand for sustainable technologies.

Cleantech venture capital funds are providing the necessary funding and support to help these companies scale and reach their full potential.

CleanTech Venture Capital Funds are on the rise, with investors allocating about $64 billion in total funding to cleantech businesses in the first half of 2021. This amount is expected to surpass $100 billion in the coming time.

The Venture capital funding of clean energy and cleantech startups has grown dramatically over the past decade, with a combined amount of around $230 million in 2002, compared to the current trend.

There are hundreds of other VCs out there in the industry specializing specifically in cleantech and renewable energy, but some notable ones include World Fund, Clean Growth Fund, and Munich Venture Partners.

DeepTech & Climate Fonds, a German deeptech and climate tech VC, has invested in several startups, including Cylib, LiveEO, Proxima Fusion, Planqc, and Fernride.

DeepTech & Climate Fonds is based in Berlin, Germany, and can be found at Ecosummit GmbH, Neuenburger Str. 19, 10969 Berlin.

In 2002, only 43 clean energy startups received venture capital funding in the US, raising a combined amount of around $230 million.

The total funding allocated to cleantech businesses in the first half of 2021 was about $64 billion, and is expected to surpass $100 billion in the coming time.

There are hundreds of other VCs out there in the industry specializing specifically in cleantech and renewable energy.

Green Generation is a Berlin-based venture capital fund focused on early-stage investments in Europe. It's particularly interested in food, decarbonization, and circularity.

Reverion, a company in its portfolio, raised $62M in Series A funding on September 13, 2024. Greenlyte Carbon Technologies and Klim are also part of its investments.

The Green Generation Fund is one of many venture capital firms shifting attention to clean energy and cleantech startups.

The US is the largest market for climate-tech startups, with a total of $14.6 billion allocated to startups in 2023. This makes it the best-funded climate-tech startup market for the third year running.

BP Ventures is a notable green venture firm that has invested over $500 million in over 40 VC funds and technology companies. They focus on five areas, including advanced mobility and carbon management.

In the EU, startups raised $10.8 billion across all sectors, with Sweden and Germany leading the way, accounting for over half of the total funding. This highlights the EU's desire to grow a stronger clean-tech manufacturing base onshore.

Fifth Wall led the ranks of active and high-spending lead investors, leading or co-leading five venture rounds, with the largest being a $300 million Series B for Our Next Energy.

TPG Rise Climate Fund, with a $7.3 billion investment vehicle, has been putting capital to work, leading a $250 million Series C for Ohmium and a $150 million financing for Palmetto Clean Technology.

BP Ventures is a green venture firm that has invested more than $500 million in over 40 VC funds and technology companies, growing new energy companies to improve and transform their core businesses.

Unlike traditional venture capital, BP Ventures is both an investor and end-user of the high-end technologies they invest in, establishing long-term relationships with co-investors and portfolio companies.

BP Ventures serves companies all across the globe, providing strategic value to BP, not just financial value.

The US is the largest market for climate-tech startups, with a total of $14.6 billion allocated to startups in 2023.

The GET Fund, a Munich-based investment firm, has announced the first closing of GET Fund I at €100M on July 2, 2024, and has already made its first investment in Vamo with a €10M Seed round.

Lowercarbon Capital, co-founded by Chris Sacca, had a record-breaking quarter in Q2, backing 15 newly reported rounds, and its largest co-led round for 2023 was a $70 million Series B for Loam Bio.

BP Ventures has invested over $500 million in over 40 VC funds and technology companies, focusing on alternative energy, digital transformation, and power & storage.

The EU raised $10.8 billion across all sectors in 2023, with Sweden and Germany leading the way, accounting for over half of the total funding.

Sweden is home to low-carbon steelmaker H2 Green Steel and battery manufacturer NorthVolt, which together raised $3.6 billion across three deals.

The US is the largest market for climate-tech funding, with a total of $14.6 billion allocated to startups in 2023.

This is the third year in a row that the US has held this position, and it's likely due to the passage of the Inflation Reduction Act in 2022.

In China, there was a significant decrease in climate-tech funding, with $11.7 billion mobilized in 2023, which is 23% lower compared to 2022.

This decline is likely due to a perceived oversupply of clean-tech manufacturing capacity in the region.

The EU came in third place overall, with startups raising $10.8 billion across all sectors in 2023.

Sweden and Germany led the way, accounting for over half of the total funding in the EU.

Sweden is home to some notable climate-tech companies, including H2 Green Steel and NorthVolt, which together raised $3.6 billion across three deals.

The EU's approval of almost $1 billion in German aid to Northvolt in January 2024 highlights the desire of European governments to grow a stronger clean-tech manufacturing base onshore.

Industrya, a smart green VC, invests in energy, industrial innovation, and advanced materials, with a portfolio that includes SupAirVision and VocSens.

Centrica Innovations, a corporate venture capital group, focuses on startups transforming industrial and energy markets with innovative ideas and technology. They've supported eco-friendly startups like Driivz, which scales electric vehicle charging and payments.

Energy Impact Partners (EIP) collaborates with leading energy utilities to invest in startups working on innovative solutions for a cleaner and more efficient energy system. Their notable investments include Ecobee and Trifecta, which optimize energy consumption and boost green energy production.

Low-carbon transport is a sector that's received a disproportionate amount of funding relative to its global emissions contribution. In 2020, the transport sector accounted for 17% of global emissions.

One of the main reasons for this oversubscription is the cost competitiveness of battery-electric vehicles. The global auto market is also a significant factor, driving investment in low-carbon transport startups.

Low-carbon transport startups raked in upwards of 27% of climate-tech VC/PE funding in 2023, which is much lower than previous years. However, this is still a significant amount of funding, and it's likely due to the growing demand for sustainable transportation solutions.

Here are some key statistics on low-carbon transport funding:

Overall, while low-carbon transport has received a significant amount of funding, it's essential to address the undersubscription in other sectors, such as low-carbon industry, buildings, and agriculture, which contribute significantly to global emissions.

Energy Impact Partners is a big player in the clean energy space, with over $4 billion in assets under management. They have a strong track record of investing in innovative startups like Instagrid, which raised €88 million in Series C funding.

Their goal is to help decarbonize the global economy by investing in exceptional companies that are making a positive impact. They focus on partnering with leading energy utilities to accelerate the growth of these startups.

Energy Impact Partners has a broad platform that enables them to invest across the low-carbon economy of the future. This includes investing in companies that optimize energy consumption and boost green energy production.

Some of their notable investments include Ecobee, Trifecta, and Sense, which are all working on innovative solutions to reduce energy waste and increase energy efficiency.

Deep Tech is a rapidly growing field that's making a significant impact on the world.

DeepTech & Climate Fonds (DTCF) is a German venture capital firm that invests in early-stage deeptech and climate tech startups.

One notable investment by DTCF is in Cylib, a company that received €55M in Series A funding in 2024.

The DTCF portfolio also includes companies like LiveEO, Proxima Fusion, Planqc, and Fernride.

Ecosummit GmbH, based in Berlin, Germany, is the company behind DTCF.

Proptech is a fascinating space that's making waves in the industry. Berlin-based Proptech1 Ventures invests in early stage climate tech startups.

One such startup is Ecoworks, which is likely a company focused on sustainability and environmental innovation. Proptech1 Ventures has also invested in Voltfang, a company that secured €8.1M in Series A funding in October 2024.

Terra One is another startup that Proptech1 Ventures has invested in, although details about the company are scarce. Autarc and Climate X are also part of Proptech1 Ventures' portfolio, but not much is known about these companies.

42watt is a startup that has caught the attention of Proptech1 Ventures, although specifics about the company's mission and goals are not available.