For the third straight year, VC climate tech funding in North America and Europe has dropped.
According to Pitchbook, here’s why investors are cooling off, while the world burns:
📉 The AI boom is siphoning capital away from climate.
📉 High-profile failures like Northvolt and Universal Hydrogen have shaken confidence.
📉 Uncertainty over the US political landscape, with a potential Trump administration, is making the future murky.
But here’s the thing—blaming AI for “stealing” funding is pointless. Money follows opportunities. If climate tech wants to compete, it’s on us to create startups and scaleups that attract capital—not just VC but a broader mix of funding sources.
Failures like Northvolt show us that execution, not hype, is what earns investor trust. Meanwhile, the right climate solutions—ones with strong business models and clear value propositions—can still thrive, even in this tougher environment.
So, what’s the play? Build smarter, execute sharper, and broaden your funding strategy. The stakes are too high to slow down.
💡 If you’re working on scaling up your climate tech and want to break through, let’s talk. Together, we can ensure your venture doesn’t just survive but thrives. Reach out!
Here is the source article: https://pitchbook.com/news/articles/climate-tech-vc-deals-fell-for-3rd-straight-year?utm_medium=newsletter&utm_source=daily_pitch&sourceType=NEWSLETTER