New report on climatech shows innovations are driving the space forward
While venture capital activity dropped in 2022 to $24.5 billion from $32.9 billion in 2021, it was still the sector's second-biggest year.
Citing data from Pillsbury’s “Climatetech: 2022 Year in Review” report, PitchBook News reports that companies in the sector were not immune to the challenges facing venture capital (VC), but the long-term bets placed on climate innovation are driving the space forward.
The just-released report, downloadable at this link, provides an in-depth analysis of climatatech VC activity. Key takeaways include:
- Climatetech VC activity totaled $24.5 billion, down from $32.9 billion in 2021 but representing its second-biggest year.
- Despite the downward trends in broader VC activity, 2022 set a record with $2.1 billion in total first-time financing deal value in climatetech.
- Earlier VC rounds held a larger share of the total deal value in 2022. PE, corporate venture capital (CVC), and nontraditional VC investment activity all reached their second-highest annual levels of deal value in 2022.
- CVC activity deal activity set a record for the number of deals completed, despite moderately lower aggregate deal value.
Pillsbury Winthrop Shaw Pittman LLP is an international law firm with a particular focus on the technology and life sciences, energy, financial, real estate, and construction sectors.