Investment in climate technology startups declines

Compared with the first three quarters of 2021, investment volumes fell by 30 percent this year. However, PWC sees little cause for concern.

The accounting firm Pricewaterhousecoopers (PWC) has published its "State of Climate Tech report" for the third quarter of this year. According to the report, the slight downward trend in funding for climate technology startups that began in the second quarter of this year continues. From July to September, a total of $287 billion flowed into climate technology startups. Startups in the mobility and transportation industries received the most money. Twenty-six percent of all investments went to climate technology startups in the third quarter.

Compared to the first three quarters of 2021, the volume of investment this year was down 30 percent. However, PWC sees little cause for concern: despite the current difficult market environment, eight out of ten investors plan to increase their investment activity in climate technology startups over the next two years, and demand for climate technology is also growing. In addition, 2021 was an exceedingly strong year in the financial markets: In the third quarter, climate technology startups raised $9.28 billion via IPOs using Spacs - more than ever before. There were also some giant funding rounds.

The "State of Climate Tech report" is published for each quarter. Since 2018, PWC has studied more than 9,800 deals and 4,000 climate technology startups for it. More than $260 billion has flowed into the industry since the first quarter of 2018.