2023 climate tech venture investment trends

Venture and early-stage investment in climate tech in 2023 was down 30% from 2022, according to market intelligence firm Sightline Climate. But is that a bad thing? In this episode, Shayle unpacks the findings of Sightline’s 2023 Climate Tech Investment Trends report with Kim Zou, co-founder and CEO of the firm, which also produces the popular CTVC newsletter. (Shayle is an adviser to Sightline, and Kim was also previously a partner at Energy Impact Partners where Shayle works.) Kim argues that smaller deal sizes suggest that the climate tech space is actually maturing. The data focus on venture and early-stage capital, rather than non-equity financing, which actually expanded in 2023, another sign that climate tech finance is becoming more sophisticated. Shayle and Kim also cover topics like: Why food and land use fell out of the top three verticals (and why heavy industry took its place). Major funding rounds, acquisitions, and bankruptcies in 2023. The role of generalist investors moving into climate tech. Zou’s predictions for investment trends in 2024. Recommended Resources: Latitude: Exclusive: Non-equity funding for climate tech is taking off Latitude: Clean energy capital is getting pricier Catalyst: Financing first-of-a-kind climate assets Sign up for Latitude Media’s Frontier Forum on January 31, featuring Crux CEO Alfred Johnson, who will break down the budding market for clean energy tax credits. We’ll dissect current transactions and pricing, compare buyer and seller expectations, and look at where the market is headed in 2024. Sign up for Latitude Media’s newsletter to get updates on the tech and business frontiers of the climate tech industry. Catalyst is supported by Antenna Group. For 25 years, Antenna has partnered with leading clean-economy innovators to build their brands and accelerate business growth. If you’re a startup, investor, enterprise or innovation ecosystem that’s creating positive change, Antenna is ready to power your impact. Visit antennagroup.com to learn more. Catalyst is brought to you by Atmos Financial. Atmos is revolutionizing finance by leveraging your deposits to exclusively fund decarbonization solutions, like residential solar and electrification. Market-leading savings rates, cash-back checking, and zero fees. Get an account in minutes at joinatmos.com.