Investment in climate technology startups declines

Compared to the first three quarters of 2021, the investment volume fell by 30% this year. However, PWC sees little cause for concern.

The auditing 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 the financing of climate technology start-ups that began in the second quarter of this year is continuing. From July to September, a total of 287 billion US dollars flowed into climate technology start-ups. Start-ups from the mobility and transportation sector received the most money. 26 percent of all investments went to climate technology start-ups in the third quarter.

Compared to the first three quarters of 2021, the investment volume fell by 30% this year. However, PWC sees little cause for concern: despite the current difficult market environment, eight out of ten investors intend to increase their investment activities in climate technology start-ups over the next two years and demand for climate technology is also growing. 2021 was also a very strong year on the financial markets: In the third quarter, climate technology start-ups raised 9.28 billion US dollars via IPOs with the help of Spacs - more than ever before. There were also some huge financing rounds.

The "State of Climate Tech report" is published every quarter. Since 2018, PWC has analyzed over 9,800 deals and 4,000 climate technology start-ups. More than 260 billion US dollars have flowed into the sector since the first quarter of 2018.