Germany slows down climate start-ups

Europe has made the strongest gains in the world in terms of investments against climate change. But Germany is not doing particularly well.

In 2016, 196 governments signed the Paris Climate Agreement, and five years later, the effects are also being felt in the startup scene: Whereas in 2016 the figure was USD 6.6 billion, in the first three quarters of 2021, startups have already raised USD 32.3 billion in the field of climate technology. Europe is the continent with the strongest growth, with investment capital almost doubling from USD 4.8 million in 2020 to USD 8 billion in 2021. After the United States and China, the most venture capital has been distributed in Sweden, the United Kingdom, France and Germany. These are the results of a study by the data provider Dealroom and the advertising agency London and Partners.

The country of inventors does not fare particularly well in the comparison: Since the conclusion of the Paris Climate Agreement, Berlin has only produced 193 startups in the field of climate technology, while London has produced 416. On the other hand, Germany is represented by two cities in the top 10 in Europe. For example, 51 climate technology startups emerged in Munich.

The study also sees an indication of a supported ecosystem in the early stages of the start-ups in the number of rounds completed. Here, Berlin ranks third worldwide, behind the Bay Area and London - but in terms of numbers, the differences are large. In 2020, there were 92 rounds around San Francisco, 65 in London and 17 in Berlin. Germany has not yet produced any unicorns in this area, and the study does not expect any in the near future. Again, Stockholm and London are winning in Europe. Both list six companies in the climate technology sector that could become unicorns.

The biggest rounds in Europe were completed by Northvolt of Sweden, Blackmarket of France, Vinted of Lithuania and a German climate technology startup: Volocopter raised $241 million in its Series D round this year. The example in this country also shows the development of the individual sectors: Energy and transportation account for 80 percent of sustainable investments. The food sector has grown the most.