The Top Investors Backing Urban Sustainability Companies

The built environment is at the center of the climate challenge. Cities account for more than 70% of global emissions, driven by energy-intensive buildings, outdated infrastructure, and carbon-heavy construction practices. As urban populations grow and climate risks intensify, transforming how we design and manage the spaces we live, work, and move through is critical to achieving net-zero goals.

Despite its outsized emissions footprint, the built environment has historically attracted a small share of climate investment—just 7% of total Climate Tech funding since 2020. But momentum is building. Institutional investors, venture firms, corporates, and public financiers are beginning to direct capital toward scalable solutions in green construction, energy efficiency, smart cities, and sustainable materials. This article highlights the most active investors funding companies working towards achieving urban sustainability.

 

Five Most Active VC Investors

 

These VC firms actively fund startups that are developing technologies to decarbonize construction, retrofit buildings, and improve urban sustainability.

 

• Breakthrough Energy Ventures aims to drastically reduce carbon emissions in the built environment. The firm has backed startups in sustainable cement and other innovative building technologies, completing 46 deals across seed, early, and late-stage investments.
• Climate Capital focuses on transforming urban spaces through investments in technologies that promote smarter, greener cities. The firm has closed 34 deals, primarily in seed and early-stage companies.
• New York-based Fifth Wall targets innovations in real estate tech and sustainable building solutions. The firm has executed 27 deals, ranging from early to late-stage funding in the built environment.
• Unreasonable Group invests in entrepreneurs at the intersection of advanced technology and sustainability. Their portfolio includes companies working to decarbonize the building sector. The firm has made 23 deals, largely in early-stage companies and accelerator programs.
• German-based High-Tech Gründerfonds support innovation in the built environment. HTGF has completed 20 deals from seed to late-stage rounds.

 

Five Most Active CVC Investors

 

These CVCs are deploying capital to modernize construction practices and scale solutions that improve how cities are built and operated.

 

• Holcim MAQER Ventures is transforming the construction industry by backing innovations in sustainable building materials and site efficiency. The firm has made 27 investments across early to late-stage companies and accelerator programs.
• CEMEX Ventures, the corporate VC arm of global construction materials leader CEMEX, invests in startups that streamline logistics, improve jobsite efficiency, and reduce carbon emissions. The firm has completed 20 investments from early to late stages.
• Google Ventures (GV) is interested in improving urban living by investing in innovative startups that combat urban congestion and improves efficiency. GV has closed 16 deals across seed to late-stage investments in the built environment.
• BP Ventures targets sustainable mass transportation solutions, including platforms for electric bus operations. The firm has made 13 deals, covering early to late-stage funding, with some debt financing and grants.
• Saint-Gobain NOVA is committed to sustainable construction through partnerships in areas such as industrial insulation, glass recycling, manufacture of low carbon glass, and other similar projects. The firm has completed 12 deals, including early to late-stage investments and grants.

 

Five Most Active Government Agencies

 

These government agencies are financing research, grants, and programs that enable energy-efficient buildings and build resilient urban infrastructure.

 

• UK Research and Innovation (UKRI) Funds technologies to accelerate the green economy by supporting research and innovation to improve building design, construction processes, and resource efficiency. UKRI has awarded 301 deals to unlock transformative built environment solutions.
• The European Commission Fund has dedicated funds towards developing a sustainable built environment by investing in energy efficient renovation of buildings like insulation and heat recovery, light optimisation and digitalisation of buildings’ systems, among others. The agency has awarded 202 grants to promote circularity throughout the lifecycle of buildings.
• The U.S. Department of Energy (DOE) funds research into technologies that improve energy performance in residential and commercial buildings. The DOE has awarded 168 grants in support of green building projects.
• The U.S. Small Business Administration (SBA) has provided 116 deals through debt financing to support startups in the built environment sector.
• The National Science Foundation invests in ambitious new civil infrastructure research to create transformative and equitable solutions for climate change adaptation and mitigation. The agency has awarded 90 grants to tackle critical challenges in the built environment.

 

Five Most Active Banks

 

These banks are channeling investments into sustainable urban development, low-emission construction, and smart infrastructure projects.

 

• Bpifrance is an active investor in the development of smart mobility, circular economy and eco-design, smart buildings, and innovative city services. The bank has made 39 deals at various stages, including seed, early, and late-stage funding, as well as debt and grants.
• Business Development Bank of Canada invests to advance sustainable development objectives and GHG emissions reduction targets in the built environment like responsible construction, sustainable buildings, and more. BDC has completed 25 deals, including early to late-stage and debt financing.
• The European Investment Bank dedicates lending to build low-carbon, resilient and livable cities, by encouraging technologies that develop sustainable urban services and mobility, climate-smart cities, and more. EIB has made 18 investments, primarily through debt financing and growth-stage capital. 
• Goldman Sachs is interested in investing in technologies that address climate change in real estate, construction of green infrastructure, affordable housing, among others. The firm has completed 14 deals, spanning early to late-stage investments and debt financing.
• Banque des Territoires funds companies that promote the decarbonization of cities and stimulate regional economic activity. The bank has made 11 deals through early to late-stage investments.

 

Investor Momentum Is Building Across the Urban Sustainability Landscape

 

Cities hold the key to achieving climate goals—but they need bold investment to make the transition. From retrofitting buildings to scaling up green infrastructure, the built environment offers high-impact opportunities with long-term value. Investors who move early can shape the next wave of innovation in energy, construction, and mobility.

 

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