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Climate tech is the fastest growing vertical in Europe – report

climate tech funding

Climate tech is the fastest-growing vertical in Europe, with funding soaring tenfold from $1.1bn (£840m) in 2017 compared to $11bn (£8.4bn) in 2021.

In the same period, climate tech was the second outright largest investment vertical behind fintech.

The data, compiled by Dealroom for Talis Capital, shows that in 2021, 13% of European venture funding went to climate tech startups.

The European climate tech ecosystem is estimated to be valued at more than $104bn (£79.5bn) at the end of 2021 – more than double the previous year.

The Rise of European Climate Tech’ report states that venture capital firms are providing the most money at 41% of all investment, shadowed by corporate investment (29%) and private equity (18%).

There was also an increase in capital in 2021 raised by specific European climate tech funds at $2.6bn, twice the amount of 2020....