22 Nov Climate Tech in Europe – Exponential Growth
The climate tech market in Europe is growing fast and here’s why you should not underestimate it.
According to a latest report by Dealroom (startups data provider), investments in Climate Tech startups have skyrocketed since the Paris Climate Agreement, raising a record of $32 Bil USD (27.5 Bil Euros) in 2021.
This investment amount is almost 5 times more than what was raised in 2016, just 5 years ago.
Based on the report, Climate Tech startups are companies that are applying technologies to reduce greenhouse gas emissions or address the impacts of climate change.
A lions share of 80% of the funding is towards the energy and transportation startups although there is a growing part of fundings going towards food companies and startups focussed on the circular economy. These include startups dedicated to second-hand and repaired products or electric vehicle manufacturers, battery recycling companies or electric flying vehicle manufacturers among others.
Undoubtedly, it is apparent from the report that Europe is the fastest-growing region for the Climate Tech investment market with investments growing 7 times since 2016.
Experts share that “Europe has likewise seen rapid acceleration of climate tech venture capital (VC) investment and global tech hubs like London, Stockholm and Paris are driving this exceptional growth. Europe is one super connected tech ecosystem and in order to really drive progress, we need cities to work together to spark ideas, share knowledge and scale solutions.”
In comparison, the investment growth rate is about 5.8 times for USA & Canada and 1.7 times for Asia since 2016.
The growth of climate tech is being driven by significant global investment into various sectors – Is your team ready to capitalize on new market opportunities?
At NAOS International, our team of Senior Consultants have been hiring top talents for clients within the Tech industry, including Climate Tech. Reach out to us to find out more.