Amid last year’s decline in venture capital inflows—which fell by 30% in the United States—one sector continued to attract funding: companies involved in climate change mitigation, ranging from electric vehicle manufacturers to clean energy companies. Funding for these companies, known as clean-tech firms, totaled $59 billion in 2022, up 4% from 2021, according to a report published by BloombergNEF.

Concerns about global warming, high energy prices, and legislation enacted in various countries to promote the decarbonization of the economy have been the main drivers of this interest. And the trend is set to continue, given the resources available for investment in the sector: according to the report, 60 clean-tech funds were closed in 2022, raising US$24,000 million. 

The average size of the financing agreements was US$10 million, compared with US$7 million in 2021.

Source: BloombergNEF