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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below
🗞️ Driving the news: While the whole startup world saw a big drop in investments, climate tech startups had a slightly better year with only a 40% decrease, and increasing its share within the sector, according to a recent PwC report
🔭 The context: The analysis paints a picture of investors becoming more selective, channeling funds specifically to areas in dire need, such as heavy industries
• The report emphasizes the increasing importance of climate tech amidst a subdued market influenced by global political and economic situations
🌍 Why it matters for the planet: Amidst the growing demand for climate technology solutions, investment in relevant startups has faced a decline for the second year, primarily due to challenging market conditions
• This poses a significant challenge given that decarbonization efforts are lagging to reach the necessary level to limit global temperature rise to 1.5°C
⏭️ What's next: While sectors crucial for decarbonization like agriculture and the built environment are witnessing a decline in investor interest, areas with notable emission reduction potential such as carbon capture, green hydrogen, and alternative foods are attracting more capital
💬 One quote: "The need for climate technology continues to rise, but equity investment in start-ups has declined for a second year amid tough conditions in private markets" (PwC report)
📈 One stat: Total venture and private equity investments dropped by 50.2% to $638 billion in the year ending September, with climate tech investments making up about 10% of this figure
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