In a highly encouraging advancement for the domain of climate technology, venture capital funds specifically allocated to this sector have successfully amassed $6.9 billion since the commencement of 2024, exceeding the $5.2 billion gathered throughout the entirety of 2023. This remarkable increase signifies an evolving dedication to combatting climate change through pioneering technological innovations.
Notwithstanding a minor reduction in the quantity of climate tech funds from 26 to 24 this year, the average fund size has witnessed a notable escalation from $202 million to $267 million. A considerable fraction of this augmentation can be ascribed to Breakthrough Energy Ventures (BEV), the climate technology fund spearheaded by Bill Gates. BEV has recently finalized its third fund with a commendable total of $839 million. Founded in 2015, BEV is committed to investing in technologies capable of significantly diminishing global carbon emissions.
As reported by the Venture Capital Journal, the most substantial climate-focused fund raised thus far in 2024 is the Decarbonization Partners Fund I, a late-stage venture capital and growth fund which has successfully raised $1.4 billion. Concurrently, BEV’s noteworthy investments have predominantly been directed towards European startups such as Mission Zero in the United Kingdom, and Heart Aerospace in Sweden.
The $6.9 billion accumulated in 2024 is specifically aimed at technologies designed to alleviate the impacts of climate change. In a broader perspective, private investment in climate technology is even more substantial. In 2023, global venture capital funding for climate tech startups surpassed $50 billion, although this amount was overshadowed by the record $76 billion achieved in 2021. Notably, European funding exceeded that of the United States in the previous year.
For further details on climate tech investment, see full list climate focused venture funds raised.
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