In Q1 2025, European climate tech startups attracted only $2.3bn in funding, a significant drop reflecting market maturity and evolving investor interests. Experts attribute this decline to several factors: the shift in capital towards AI, the difficulty of securing exits, and a harsh regulatory landscape. Rokas Peciulaitis from Contrarian Ventures highlights the challenges of attracting investment in a more developed sector, noting that while many startups are struggling, determined players may still find success in this tough environment.
"We are at a slope of despair in climate now, at least for investors. No quick wins, no massive exits, mergers and acquisitions are limited."
"Most companies required more capital than assumed, and did not show enough traction. Also, the regulatory tailwind completely failed in most cases."
"Those who are disciplined will prevail and win, both on the founder and VC side."
"Some forms of cleantech that previously attracted heaps of VC cash have gone mainstream. As these markets become more established, they tend to attract less early-stage venture investing."
Collection
[
|
...
]