State of Climate Tech Q1 ‘24
Net Zero Insights’ quarterly analysis on global funding and deal activity in the private market venture space.
10 April, 2024
First Quarter Global Funding and Deal Activity in Climate Tech Dominated by Capacity Expansion Giga and Mega Rounds
New report released today from Net Zero Insights analyzes the current state of climate tech investment by innovation framework, deal stage, and stakeholder perspectives
LISBON/PORTLAND, Ore. – April 10, 2024 – Today Net Zero Insights, the leading market intelligence platform for climate tech, supported by Alder & Co., a purpose-driven climate tech marketing agency, released its quarterly analysis on global funding and deal activity in the private market and ventures space for Climate Tech. Key findings include:
“As we entered 2024, large giga-rounds ($1B+) raised by Northvolt, Automotive Cells Company, H2 Green Steel, Enpal and IM Motors, served as remarkable outliers for this quarter representing more than half of the quarter’s total funding,” said Federico Cristoforoni, Co-Founder, Net Zero Insights. “This capital was allocated predominantly towards capacity expansion followed closely by facility construction.”
In its year-end 2023 State of Climate Tech report, Net Zero noted that resourceful entrepreneurs turned their attention to public funding opportunities and alternatives driving non-equity funding for climate tech to a historic high.
“We’ve continued to see capital stack diversification in early 2024 with a significant contribution coming from debt financing,” added Cristoforoni.
For more information, read the full report here.
About Net Zero Insights
Net Zero Insights is the leading data and research platform for Climate Tech. The Net0 Platform provides access to thousands of startups/SMEs, deals, and investors allowing users to spot new innovations, trends and deals in the rapidly evolving world of climate technology. Investors, corporations, researchers and business developers use the platform to identify new startups and keep track of emerging trends and opportunities. Find out more: netzeroinsights.com
About Alder & Co
Alder & Co. is a leading, global strategic brand marketing agency with the mission to drive the adoption of climate technologies until they become universal. Alder partners with forward-facing, innovative climate tech companies that need progressive brand & marketing strategies to drive growth, secure investment, and make the impact needed to address our generation’s most urgent crisis – our environment. Find out more: alderagency.com
Media Contact
Whitney McGoram: whitney@alderagency.com
Amidst a difficult quarter for climate ventures, the market continues its maturation on the continuous deployment towards later-stage physical solutions. Notably, 54% of total quarter funding stems from outlier rounds of $1B+.
This quarter, mega-rounds are marked by a predominant allocation of capital towards capacity expansion. This includes a focus on production ramps, output growth, leveraging existing manufacturing capacity, and entering new markets, representing the primary use of capital for physical solutions. However, these investments were still closely followed by investments in facility construction.
This quarter, there was a notable shift in investor preferences towards tangible, physical solutions over digital approaches. Investors directed their focus towards tangible offerings across different sectors, over the potential for groundbreaking advancements or widespread adoption.
This quarter’s emphasis on physical solutions was potentiated by non-dilutive forms of capital, with a significant contribution coming from debt financing.
Europe is emerging as a strong contender in the global megaround scene, bolstered by a wave of domestic investors pouring capital into the region’s burgeoning climate tech sector.
Additionally, we are seeing a steady increase in the total number of investors participating in megarounds.
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