TechCrunch Industry News Climate tech matured in 2024 as investors favored bigger rounds, later stages
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Jan 20, 2025 In 2024, climate tech investments experienced a down year, falling to $12.9 billion. However, deal sizes increased, signaling a maturing market. The focus has shifted towards later-stage startups, highlighting new investor priorities. This trend suggests challenges ahead for early-stage companies trying to secure funding in a competitive landscape.
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Climate Tech Investment Trends
- Climate tech investments decreased by 7% in 2024, totaling $12.9 billion, slightly less than 2023’s $13.9 billion.
- Despite the dip, the sector matured, indicated by increasing deal sizes and a shift towards later-stage funding.
Investor Focus Shift
- Investors are now more interested in post-seed companies than in previous years when early-stage startups were favored.
- This shift suggests a growing confidence in the viability and scalability of established climate tech ventures.
Market Context for Climate Tech
- The decline in climate tech deal count mirrors a broader market trend affecting all sectors in 2024.
- Despite this overall decline, deal values across all sectors nearly reached 2022 levels, largely thanks to AI investments.