Our monthly roundup checks the pulse on climate tech funding to see where the industry is headed. Investment into climate tech is still going strong, on track to pass $80B in annual funding including non-dilutive capital. This article looks at the latest investment activity to highlight the most notable deals, exits, and funding patterns.
A good month for EVs with 3 big rounds and 1 IPO
With the industry securing 3 out of 5 top deals, 2 large debt rounds, and 1 IPO, August was a good month for EVs. London Electric Vehicle Company raised a $181M growth equity round from Chinese carmaker Geely, and Asia’s largest flying car company Xpeng Aeroht closed a $150M Series B round to ‘bridge people to the skies’. Bangalore-based electric scooter company Ola Electric Mobility entered the public markets, although they were off to a wobbly start. The company’s share price more than doubled after the IPO, reaching a valuation higher than Tesla. The market quickly corrected with a 6-day losing streak before bouncing back landing at ₹116 per share, still a significant jump from the initial price of ₹76.
Semiconductors regained the spotlight with a $75M growth round
The funding went into Singapore-based Silicon Box, a manufacturer of advanced packaging of chiplets. Silicon improves how computer chips are packaged and connected, leading everyday electronic devices to work faster with less power. The company is set to open a €3.2B chip factory in Novara, which starts operating in 2028. The project is expected to create 1600 new jobs and boost the microelectronics sector in Italy. Another notable round includes Fortera, who secured a $85M Series C round from investors including Khosla Ventures and Temasek to lower the cement industry’s carbon emissions.
2024 could be a good year for climate tech exits
This year continues to see an uptick in exits, with global activity projected to exceed recent years by a close margin. M&As are still dominating, accounting for 22 out of 23 exits in August. HD Hydrogen snapped up Finnish fuel cell tech firm Convion for $79M for example, and Solar Pile Internations (SPI) acquired solar panel tracker maker Nextracker. SPI is the world’s largest supplier of solar foundation systems for solar farms, providing the structures that keep solar panels stable. SPI’s products can easily be reused and recycled, helping to protect the environment and farmland. Following this theme is renewable energy provider Suzlon Group acquisition of Renom Energy with a 76% stake. Renom Energy’s maintenance and repair services help wind and solar farms run efficiently.
Climate tech continues to gain momentum
August proved to be a vibrant month in climate tech, despite the holiday season. In the last four years investment into climate tech solutions has more than doubled – a testament to the commitment from corporates, investors and governments to drive meaningful change.
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