According to the recently published PwC 2023 State of Climate Tech report, investments in climate tech from venture capital and private equity experienced a 40% decrease compared to last year. This is due largely to eroding investor confidence in the wake of economic and geopolitical uncertainty.
The report looked at over 8,000 climate tech startups and more than 32,000 deals. While the decline in climate tech was substantial, it was comparatively smaller than the average fall of 50% across all sectors in venture capital and private equity funding.
This being the case, the share of total funding allocated to climate tech is actually up from last year, accounting for over 10% of private market start-up investments in 2023, up from 7% in 2018.
“The good news is that the sector has performed well in relative terms, with investment falling less than in other areas. It is also encouraging to see a shift in the balance of investments towards technologies that can cut emissions the most,” said Emma Cox, global climate leader at PwC…
