Q1 shows steep decline for climate tech start-ups
Companies in the sector raised $5.7 billion across 279 VC deals, according to PitchBook data. That's a 36 percent decline in deal value, a 31 percent decline in deal count from the previous quarter, and a more than 50 percent from its peak in Q3 2021.
The first quarter of 2023 was not a good one for start-ups in the climate technology space.
According to PitchBook data (click here to download the report), venture capital (VC) funding for companies in the sector slowed to its lowest pace in nearly three years, a worrying sign for an industry which had, until recently, “brushed off the tech market downturn.”
In Q1, climate tech start-ups raised $5.7 billion across 279 VC deals, according to PitchBook data. That’s a 36 percent decline in deal value and a 31 percent decline in deal count from the previous quarter. From its peak in Q3 2021, quarterly deal value has fallen more than 50 percent.
Climate tech was one of the most resilient segments of the private market in 2022. Carbon and emissions tech start-ups raised $13.8 billion in VC deals compared to $14.1 billion the previous year, a dip of just 2 percent, according to PitchBook data. That was despite a bear market that stalled VC funding across nearly every industry.