· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Venture capital investment in climate-tech startups has slowed in recent years, but certain areas like battery storage and electric grid infrastructure continue to attract significant funding
• In the first half of 2024, venture capitalists invested $19 billion in 1,235 climate-tech deals globally, with $6.7 billion of that in the U.S., despite a general decline in investment
🔭 The context: Higher interest rates and uncertainty about government climate policies have led to a decline in overall climate-tech funding since its peak in 2021
• Nevertheless, sectors such as grid infrastructure, low-emission hydrogen, and low-carbon mobility still see robust investment, driven by the rising demand for electricity and the push for greener technologies
🌍 Why it matters for the planet: Continued investment in climate-tech sectors is essential for advancing innovations that can reduce greenhouse gas emissions and improve energy efficiency
• Technologies that bolster the electric grid and support low-carbon transportation are critical for managing the increased electricity demand from electric vehicles and AI data centers
⏭️ What's next: As venture capitalists seek less capital-intensive startups, investments are likely to focus on companies that can partner with established multinationals
• Areas like hydrogen production, battery technology, and efficient grid management are expected to see ongoing funding due to their potential for high impact and scalability
💬 One quote: “VC investment in electric-grid infrastructure is on pace to surpass all of last year’s level of $4.37 billion,” says John MacDonagh, senior analyst at PitchBook
📈 One stat: Startups focused on grid infrastructure raised $2.73 billion globally in the first six months of 2024, with nearly half of that amount coming from U.S. deals
Click for more news covering the latest on green tech
