As extreme weather events grow more intense and unpredictable, climate risk must be assessed to prevent escalating financial and infrastructure losses. Climate-related disasters have caused more than $3.6 trillion in damages since 2000, and projections warn that global GDP could decline by as much as 22 percent by 2100. In response, demand is rising for advanced analytics and modeling tools that enable financial institutions, governments, and corporations to evaluate climate exposure across geographies, sectors, and portfolios.
Meeting this demand will require the large-scale mobilization of both public and private capital, including targeted investment in technologies that support climate risk modeling and the assessment of financial and supply chain vulnerabilities.
This final article in our climate risk assessment series explores how capital is being deployed in 2025 to accelerate the development of these technologies. Building on our earlier coverage of breakthrough innovations and emerging startups, it examines where funding is flowing, who is investing, and how these trends are shaping the future of climate intelligence.
Funding activity cools after investment highs in 2021 and 2024
Equity investment in 2025 has begun on a slower trajectory, with total deployment yet to reach half of 2024’s volume, which closed at USD 324 million. Notably, 2024 now stands as the peak year for climate risk assessment funding, surpassing historically strong years like 2021 and 2024. This is particularly significant given that both 2021 and 2022 were landmark years for climate tech investment globally.
The years 2021 and 2024 marked the highest levels of equity investment, with USD 277 million and USD 324 million respectively. These peaks can be attributed to several large-scale transactions:
In 2021, a surge in equity investment was driven by eight high-value deals ranging from $12 million to $54 million. Notable The 3 largest transactions include:
- Cervest (UK) raised $30 million in a Series A round in May
- One Concern (USA) secured $45 million in a Series C round in June
- Jupiter Intelligence (USA) closed a $54 million Series C round in September
In 2024, investment activity remained strong, with several sizable equity rounds ranging from $12 million to nearly $68 million. Key deals include:
- AiDash (USA) raised $50 million in a Series C round in March
- Arbol (USA) closed a $60 million Series B round in April
- Prewave (Austria) secured $67.8 million in a Series B round in June
Early-stage climate deals peaked in 2024
Over the past five years, investor interest in Climate Risk Assessment has steadily increased, with strong deal activity across early and growth stages.Â
Pre-Seed and Seed rounds peaked in 2021, reflecting heightened enthusiasm for data-led innovations and emerging climate intelligence platforms. Many of the companies that secured early capital during this peak have since progressed, now raising larger rounds at the Early and Late-Stage levels.
Since 2022, early-stage deal volume has shown steady growth, suggesting increased confidence in the commercial potential of these climate technologies.
From 2022 to 2024, both early and late-stage deals rose consistently, indicating a maturing sector and growing confidence in the scalability of these solutions. The upward trend suggests that climate risk technologies are evolving beyond proof-of-concept toward market readiness and broader adoption.
Government support grows
Government funding has shown steady growth with the number of publicly backed deals rising from five in 2020 to seven in both 2021 and 2022, and reaching 10 deals in 2024. This trend highlights the public sector’s increasing role in advancing climate intelligence, particularly in areas that may be too early-stage or capital-intensive for private investors alone.
Here are a few notable grant-funded deals in 2024 that showcases the growing role of public capital in advancing climate risk solutions. Notable recipients include:
- Latitudo 40 (Italy), which secured two grants in January – one for $319k and another for $235k
- Spire Global (USA), which received $14 million in January and an additional $4.5 million in August
- Correntics AG (Switzerland) was awarded $1.62 million in May
Strategic investors including corporations and corporate venture capital (CVC) have demonstrated consistent, though modest, participation. Their interest is likely influenced by evolving regulatory requirements and the growing need for supply chain resilience.
Analytics platforms outpace modeling in investor preference
Within Climate Risk Assessment, Climate Risk Analytics Platforms have attracted the lion’s share of funding, with investment peaking in both 2021 and 2024 each exceeding $200 million. This trend reflects sustained market demand for integrated platforms that offer data intelligence to governments, insurers, and corporations navigating complex climate risks.
By comparison, Climate Risk Modeling has seen more modest and steady funding levels, with a small uptick in 2023. While modeling remains a foundational capability, investor interest appears to be shifting toward end-to-end solutions that layer modeling with real-time data and strategic insights.
US dominates global investment in climate risk assessment
North America leads climate risk assessment funding, with the region attracting a total of $586 million since 2020 surpassing Europe’s cumulative $434 million over the same period.
While North America leads in total funding, Europe surpasses it in deal volume with 91 deals since 2020 compared to North America’s 63. Europe has consistently led in the number of deals each year, except in 2021, indicating a broader but more modestly financed ecosystem of climate risk startups.
The United States dominates global investment accounting for $557 million in funding across the past five years. Canada trails with a modest $29 million.
In Europe, the United Kingdom leads with $109 million in total funding, followed unexpectedly by Austria at $97 million. Other notable recipients in the region include Switzerland followed by France, and Spain.
Elsewhere, Australia has attracted $22 million in funding. However, there has been minimal investment activity reported across Asia, Africa, or South America in this segment to date.
Climate risk assessment is shifting from early innovation to market deploymentÂ
While funding volumes have slowed compared to previous peaks, the broader trend points to a sector that is maturing, with investors becoming more selective and focused on proven technologies.
Capital continues to flow toward analytics platforms and integrated solutions that demonstrate clear commercial value. At the same time, government funding is playing a larger role.
Climate risk assessment is entering a pivotal phase, one where targeted capital can accelerate the shift from fragmented tools to integrated systems that drive real-time, decision-ready insights. As investor expectations mature, the focus is turning to technologies that not only predict risk but also enable operational resilience and financial planning at scale.
With regulatory pressure mounting and climate volatility increasing, the sector offers a clear opportunity to back the next generation of solutions that sit at the intersection of infrastructure stability, supply chain continuity, and financial risk modelling. For forward-looking investors, now is the moment to shape a market poised to become foundational to global risk management.
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