European Climate Tech in 2023
Key takeaways of European Climate Tech in 2023
- Over $20B raised by European climate tech startups in 2023, nearly matching its record year set the year before, bucking the declining trend seen in other segments this year.
- Europe’s share of climate VC reached a record high of 43% of global share, up 2x in the past 4 years.
- UK, Sweden and Germany led for total climate tech VC in 2023 while Iceland, Lithuania and Bulgaria recorded fastest climate tech VC growth against 2022.
Brief definition of Climate Tech
Climate Tech refers to an array of technology solutions designed to address climate change and its environmental effects. This can be done by reducing GHG emissions or adapting our systems to environmental changes.
Within the broad spectrum of climate tech, we find different types of technology, such as hardware, software, API, IoT, and biotech. Climate applications span a wide set of industries and sectors.
To learn how Dealroom defines its entities, taxonomy, filters and more, click here
Over $20B raised by European climate tech startups in 2023, nearly matching its record year set the year before.
- Despite the fall in VC investment across other segments, European climate tech startups saw its second strongest year to date for VC investment.
- Over $20.2B raised in 2023 across 1K funding rounds, explore all of these funding rounds on the platform here.
- Early stage funding rounds ($0-$15M) into European climate tech startups reached record levels of VC investment, up 3% on the previous year - totalling $3.2B of VC investment - see these funding rounds here.
- Breakout stage funding rounds ($15-$100M) into European climate tech startups went down 4% on last year though 33% higher than 2021 levels - totalling $6B of VC investment - see these funding rounds here.
- Late stage funding rounds ($100M+) into European climate tech startups matched its record levels seen in 2022, totalling $11.1B of VC investment - see these funding rounds here.
UK, Sweden and Germany led for total climate tech VC in 2023 while Iceland, Lithuania and Bulgaria recorded fastest climate tech VC growth against 2022.
- British, Swedish and French climate tech startups that raised capital in 2023 accounted for nearly two-thirds of the continents total climate tech investment for the year.
- Sweden broke into the top 3 for European climate tech investment in 2023, thanks to megarounds into clean energy startups such as Northvolt and H2 Green Steel
- Iceland recorded the fastest growth year on year for climate tech VC from 2022-2023, thanks a combined $100M investments into First Water, a land based salmon producer, making the investment the country's largest climate tech round to date.
- Explore climate tech VC by European country here on the platform.
Europe's share of global climate tech VC reached a record high of 43%, up 2x in only 4 years.
- Europe has seen a rapid growth in its share of global VC investment into climate tech companies, from 12% seen in 2018 to a record high seen in 2023 of 43%.
- Explore this data here in order benchmark Europe against other global regions for climate tech investment on the platform.
Electric Mobility, EV Battery and Urban Tech were the leading climate tech segments for VC investment in 2023
- To explore funding rounds into these and other climate tech segments, click here.
- To learn how Dealroom defines its entities, taxonomy, filters and more, click here
Which investors led these climate tech investments in 2023?
European climate tech startups have been receiving an increasing proportion of VC investment over the past few years, this has been supported by a wide network of VC's, private equity and other investors based within the continent and further afield.
The table below showcases active investors into European climate tech startups in 2023 with at least 5 investments made into climate tech startups last year.
You can also explore these investors and other investors investing into climate tech here on the platform.