The European climate technology opportunity still remains a happy exception in an otherwise bleak economic outlook – in just two years investment has doubled and the ecosystem has grown by leaps and bounds.
According to a report from Dealerroom, investment in climate tech has doubled in the past two years to more than $100 billion. As European investors continue to wake up to the opportunities offered by climatetech, it has become the fastest growing investment industry on the continent.
With 70% of investment coming from local investors, the opportunity for international investors to claim a share of the booming market remains largely untapped. With 17%, the United States is the second largest source of investment in climate technology, followed by Asian investors with a share of 9%.
Venture funds are the largest investors in climate technology at 41%, followed by corporate investors at 29%, private equity funds at 18% and angels at 6%.
And the number of ‘climate tech unicorns’ is increasing rapidly year on year, which is in line with the explosive interest in the sector.
In 2019 Deep Tech Northvault was the only European climate tech unicorn to emerge, in 2020 four entered the scene: Lilium, Arrival, Tier and Octopus Energy. 2021 broke records with 11 European climate techs achieving unicorn status: Enpal, Backmarket, Depop, Voi, Vertical, Freire, Wallbox, Fastened, Sono Motors, BritishVolt and Inform.
According to Dealroom, carbon sequestration is a promising but still nascent field and within conscious food startups there are quite a few sustainable fertilizer startups.
The alternative protein sector continues to grow, with insect-based alternatives generating the highest investment rates, followed by plant-based alternatives. Insect sausages may soon be on European shelves.
And the rapid development of ecosystems has led to a rapidly growing demand for climate technology talent, providing a bright spot for a continent dealing with the far-reaching effects of Russia’s energy siege.