Climate funding abides in $19B 2022 midyear update

Since we last tracked climate tech’s funding peak of $40B in 2021, the free-flowing venture market has started to retreat for the first time since 2019. The venture market was hit with a -23% drop in funding in the last quarter, and an even steeper -31% in crypto.

 
As overall funding declines, climate tech investment returns to pre-boom time levels with a good amount of dry powder left to go. Of note, venture funding announcements are lagging indicators of real-time market shifts. We’ll continue to keep a finger on the pulse on the coming months, and whether the new spate of climate dry powder is enough to weather the macro funding fallout.

The majority of the funding we’ve seen remains in the US across Transportation, Energy and Food & Land Use. Fewer mega deals (>$500m) this year account for the drop in total climate dollars while the actual volume of climate deals has increased with the amount of climate-curious investors joining in.

Tl;dr, climate tech investment activity – particularly earlier stage – is still on track to increase YoY, even if funding dollars may decrease from the $40B funding peak in 2021.

In our report, we break that down by vertical, sector, stage, and geography to offer a full market map across ~$70B in climate funding in 1,312 deals over the past two years.

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Πηγή: ctvc.co