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PRNewswire 14-May-2024 8:00 AM
As a sign of stabilization in US venture capital, findings show long-term tailwinds behind climate tech
SAN FRANCISCO , May 14, 2024 /PRNewswire/ -- With 88% of global carbon emissions now covered by a net-zero goal, climate tech has outperformed and investors remain committed to the sector, according to a new report from Silicon Valley Bank (SVB), a division of First Citizens Bank. While overall venture capital (VC) fundraising and deal activity in 2023 saw a 24% decline from 2021, climate tech is only 14% below 2021 results, with several individual subsectors like carbon tech and climate data showing signs of growth.
"With steady fundraising and an increase in funds and firms investing in the sector, the groundwork has been laid for ongoing support and investment in climate technology solutions," said Dan Baldi, national head of SVB's Climate Technology and Sustainability practice. "Amid the growing presence of climate risks, technologies geared toward mitigating these hazards are positioned for growth as a necessity."
Leveraging SVB's proprietary data and insights, the 2024 Future of Climate Tech Report reveals the outlook on climate tech and the broader innovation economy. Amid a substantial contraction in the innovation economy, climate tech has shown notable resilience despite an overall drop in VC funding. While deal activity has stayed robust compared to other sectors, invested capital has decreased by over 50%, primarily due to a decline in deals exceeding $100 million.
SVB's Future of Climate Tech report provides an in-depth look at current fundraising activity and challenges, macro trends and emerging technologies. The 2024 report also analyzes four themes shaping the future of climate technology:
Key 2024 Report Findings:
Climate tech fundraising remains resilient
Companies are running low on cash
Climate tech enjoys long-term tailwinds
Learn More
To read the complete Future of Climate Tech report, click here:
The Future of Climate Tech Report | Silicon Valley Bank (svb.com)
SVB is a leader in providing market insights on sectors across the innovation economy. For the complete library of SVB's signature reports, please visit Market Research Industry Trends & Insights | Silicon Valley Bank (svb.com)
About Silicon Valley Bank
Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial banking to companies in the technology, life science and healthcare, private equity and venture capital industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ:FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com
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SOURCE Silicon Valley Bank