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Laxman Pai, Opalesque Asia: Venture funding for climate tech start-ups fell to US$52 billion over the first three quarters of 2022, or 30% less than the same period last year, said a study.
Climate tech funding in 2022 represented more than a quarter of every venture dollar invested in 2022, in the upper half of the 20-30% range observed since the start of 2018, according to PwC's State of Climate Tech 2022 report.
Investment in climate tech has been in the US$15-20 billion range per quarter, in line with the first half of 2021. This represents aggregate funds raised for climate tech since the start of 2018 of US$260 billion, over which more than US$50 billion has come in 2022.
The report also finds improved targeting of funds on technologies that can do the most to cut emissions. In 2021, start-ups targeting sectors that are responsible for 85% of emissions attracted just 39% of the investment. In 2022, start-ups in those sectors attracted 52% of climate tech investment.
According to the report, the robustness of climate technology investment as a share of venture capital activity sits alongside three less positive trends.
First, the number of and total value of deals under US$5 million, typically at the earliest stages of funding, have been declining since the start of 2021. The downward investment trend in early-stage funding points to a weak pipeline of high-quality start-ups progressing to later funding stages, which may prevent investors from deployin...................... To view our full article Click here
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