Time for a rain check! The state of the climate tech industry in 2023.

It's not been an easy quarter for the climate tech sector but it could be a good thing for the environment in the long term.

Nearly 20% of funding in venture tech overall went specifically to climate, showcasing the industry’s resiliency. Total European investment was $4.4B (down 58% from Q4 2022), and total U.S. investment came in at $9.0B (down 7% from Q4 2022).

But, this reflects trends across most markets and likely represents a short to medium term transition period while financial institutes and funders shift gear and wait for the market to adapt.

Investors are increasingly focused on funding startups and organizations that demonstrate a clear sustainable path to profitability.

This is ultimately a positive thing for both investors and startups as the willingness to take risks was demonstrably too high in the recent past, putting startups in a position of debt and diluting cap tables before they were really in a position to be giving away so much equity.

This new world will push organisations to consolidate market position before they are pushed to scale by shareholders looking for a quick return.

We will likely see stronger companies emerge as a result which is good for the market and good for the environment.

To learn more, download the report at this link - The State of Climate Tech Q1'23 - Net Zero Insights