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Climate tech investing surges in the third quarter

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on GreenBiz or enjoy below:

🗞️ Driving the news: The climate tech sector experienced a significant surge in investments during the third quarter of 2023, with a total of $16.6 billion invested according to BloombergNEF analysis
• This marks the highest quarterly funding in climate tech since the fourth quarter of 2021, signaling a strong rebound in the sector

🔭 The context: The first half of 2023 saw a dip in climate tech funding, totaling $13.1 billion, which was 40% less than the same period in 2022
• This decrease was attributed to broader economic challenges, including high interest rates and a challenging domestic economic situation
• However, the total number of deals in climate tech actually increased, with 633 startups raising money compared to 586 in the first half of 2022

🌍 Why it matters for the planet: The resurgence in climate tech investing is crucial for the development and implementation of technologies aimed at decarbonization and reducing carbon emissions
• The sector's resilience, even in a challenging economic environment, underscores the growing recognition of the importance of climate tech in addressing global climate challenges

⏭️ What's next: The trend towards larger, mid- to later-stage deals is expected to continue, particularly in sectors like battery technology and clean fuels
• The stabilization of federal interest rates and the increasing urgency for climate mitigation technology suggest a sustainable growth trajectory for climate tech, rather than a bubble burst scenario

💬 One quote: "There’s only a couple of sectors that are outperforming the overall investment world, and it's basically AI and climate." (Shayle Kann, a partner at Energy Impact Partners)

📈 One stat: The third quarter saw a few massive deals, including H2 Green Steel’s $1.6 billion round, Northvolt’s $1.2 billion round, and Redwood Materials' $1 billion Series D round, indicating significant investor confidence in the climate tech sector

Click for more news covering the latest on Green Tech

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