Which are the most active climate investors?

This blog post has been written by the person who has mapped the climate tech investment market in a clean and beautiful presentation

Climate tech investment reached $51 billion in 2024, marking the sector's transition from hype-driven funding to strategic, security-focused capital deployment.

While total funding declined 40% from 2023, deal sizes increased significantly with median valuations jumping to $44.5 million, indicating market maturation. The shift toward energy security and AI-driven demand is reshaping investor priorities, with geothermal funding surging 558% and nuclear investment doubling to $1.9 billion.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

Summary

Climate tech investment is maturing beyond venture capital into infrastructure and private equity funding, driven by energy security concerns and AI's massive power demands. The market shows clear winners emerging in nuclear, geothermal, and carbon capture technologies while traditional renewable energy moves toward later-stage deployment capital.

Investor Category	Key Players	2024 Deployment	Focus Areas
Top Venture Funds	Breakthrough Energy Ventures, World Fund, Energy Impact Partners	$30B+ combined VC/growth	Fusion, geothermal, carbon capture
Corporate Strategic	Microsoft, Amazon, Traditional Energy Cos	$20B+ infrastructure	Data center power, grid solutions
Geographic Leaders	Stockholm ($8.1B), London ($4B), SF Bay	Europe 43% global share	Energy storage, nuclear, AI-power
Unicorn Segments	43 climate unicorns globally	Commonwealth Fusion $2.1B	Fusion, autonomous vehicles, food tech
Exit Activity	177 exits (+136% YoY)	92% acquisitions	Strategic buyers dominating
2025 Trends	Energy security, 24/7 power	$86B dry powder available	Baseload clean energy, grid resilience
Sector Growth	Geothermal, nuclear, carbon tech	Energy sector +13% to $9.4B	AI-driven infrastructure demand

Get a Clear, Visual
Overview of This Market

We've already structured this market in a clean, concise, and up-to-date presentation. If you don't have time to waste digging around, download it now.

DOWNLOAD THE DECK

Who are the most active climate tech investors globally and which startups have they backed recently?

Breakthrough Energy Ventures leads global climate tech investment with over $1 billion committed and 100+ portfolio companies, requiring each investment to demonstrate potential for reducing emissions by at least half a gigaton.

World Fund has emerged as Europe's largest climate tech VC with €350 million under management, focusing specifically on companies with potential to save at least 100 Mt of CO₂e emissions annually. Energy Impact Partners manages $4.5 billion in assets and completed its $111.9 million Elevate Future Fund in 2023, backed by Amazon, Microsoft, and Southern Company for utility-scale energy transition investments.

SOSV ranks as the most active climate tech investor by deal count since 2018, launching over 80 new companies annually through its HAX hard tech program and IndieBio biotech accelerator. Khosla Ventures maintains its position through early investments in transformative companies like OpenAI, LanzaTech, and Impossible Foods, establishing its reputation as a pioneer in climate technology investing.

Recent notable portfolio additions include Climeworks securing $162 million in July 2025 for direct air capture technology, bringing their total funding to over $1 billion with backing from BigPoint Holding and Partners Group. Form Energy and X-energy received significant investments as part of the nuclear and long-duration energy storage boom, while geothermal startups developing AI-driven site identification technology attracted major funding as the sector nearly tripled to $558 million in 2024.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

How much capital have major investors deployed into climate startups in 2024 and early 2025?

Climate tech funding reached $51 billion in 2024 using broad measurement criteria, though venture and growth equity specifically totaled $30 billion, down 14% from 2023.

The first half of 2025 showed continued challenges with climate tech venture and growth investment totaling $13.2 billion, down 19% from H1 2024, while deal count decreased 11% to 653 transactions. Alternative measurement methodologies indicate total private climate ventures reached $92 billion when including debt and grant funding, reflecting the diverse capital stack now supporting climate technology deployment.

Energy Impact Partners deployed significant capital through its $4.5 billion in managed assets, while Breakthrough Energy Ventures continued funding from its billion-dollar commitment. World Fund's €350 million has been actively deployed across European climate tech startups, with particular focus on energy, food and agriculture, manufacturing, buildings, and mobility sectors.

The climate tech capital stack reached $86 billion in dry powder globally, with infrastructure funds comprising nearly 60% of new climate assets under management raised in 2024. This represents a shift from pure venture capital toward infrastructure and private equity deployment, indicating sector maturation and movement toward commercial-scale projects.

If you want fresh and clear data on this market, you can download our latest market pitch deck here

What are the most significant climate tech deals and funding rounds of 2024-2025?

In 2024, 72 deals crossed the $100 million mark, with 21 occurring in the mobility segment, though average mega-deal size decreased to $500 million compared to $780 million in 2023.

Four of the ten biggest climate tech deals were for businesses linked to sustainable data center development, reflecting AI's massive energy consumption demands. Climeworks' $162 million July 2025 funding round led by BigPoint Holding and Partners Group brought their total funding above $1 billion for direct air capture technology scaling.

Commonwealth Fusion Systems attracted $2.1 billion for fusion power development, establishing itself as the largest single climate tech funding recipient. Carbon capture companies collectively secured nearly $1.2 billion in 2024, with Twelve alone raising $645 million for carbon transformation technology.

Nuclear investment nearly doubled to $1.9 billion, with X-energy and other small modular reactor companies benefiting from renewed interest in baseload clean power. Geothermal startups experienced dramatic growth with sector funding increasing from $196 million to $558 million, representing a 185% increase driven by enhanced geothermal system technologies.

The largest infrastructure deal was Calpine's $16.4 billion equity acquisition by Constellation Energy, demonstrating the scale of capital moving into clean energy assets beyond venture funding.

Which climate startups received the largest investments and what technologies do they develop?

Commonwealth Fusion Systems leads with $2.1 billion raised for commercial fusion power development, targeting 24/7 clean baseload electricity generation.

Climeworks has secured over $1 billion for direct air capture technology that removes CO₂ directly from the atmosphere and stores it permanently underground. Perfect Day Foods raised $711.5 million for animal-free dairy protein production using precision fermentation, while NotCo attracted $366 million for AI-powered plant-based food development.

The autonomous vehicle sector is represented by Cruise, which maintains the highest valuation among climate tech unicorns despite recent challenges. In the carbon transformation space, Twelve raised $645 million to convert captured CO₂ into sustainable fuels and chemicals using renewable electricity.

Form Energy has attracted significant investment for iron-air battery technology providing 100+ hour energy storage duration, addressing the intermittency challenge of renewable energy. X-energy and other small modular reactor companies secured substantial funding as nuclear power regains investor interest for reliable clean electricity generation.

Enhanced geothermal startups developing AI-driven site identification and drilling technologies have collectively raised hundreds of millions, capitalizing on geothermal's potential to provide constant clean power regardless of weather conditions.

The Market Pitch
Without the Noise

We have prepared a clean, beautiful and structured summary of this market, ideal if you want to get smart fast, or present it clearly.

DOWNLOAD

Which technologies and R&D breakthroughs attract the most climate funding currently?

Energy technologies dominated 2024 investment with 35% of total funding ($4.6 billion), growing 13% year-over-year, while fusion energy displaced energy storage as the second-largest energy subsector.

Carbon capture, utilization, and storage attracted nearly $1.2 billion in 2024, with the share of climate tech funding for carbon removal increasing fivefold from 0.7% in 2020 to 3.5% in 2024. AI-centered climate ventures raised $1 billion more in the first three quarters of 2024 than in all of 2023, spanning energy optimization, climate modeling, and efficiency improvements across multiple sectors.

Geothermal technologies experienced explosive growth with 558% funding increase to $558 million, driven by enhanced geothermal systems that can access heat resources previously considered uneconomical. Nuclear technologies attracted doubled investment to $1.9 billion, with small modular reactors and advanced reactor designs leading funding activity.

Advanced materials for sustainable manufacturing, including bio-based alternatives to petroleum-derived chemicals and sustainable packaging solutions, are attracting significant investor interest. Long-duration energy storage technologies, particularly iron-air batteries and mechanical storage systems, are receiving substantial funding to address renewable energy intermittency challenges.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

Which regions receive the majority of climate investment and what are the emerging hubs?

Europe emerged as a major force with funding increasing 25% since 2020, achieving 43% of global climate tech VC share and becoming the second-largest region after North America with just under $10 billion invested in 2024.

Stockholm ranked first globally for climate tech funding in 2024, attracting $8.1 billion, followed by London with $4 billion. This reflects Europe's strong policy support through initiatives like the Green Deal and substantial government co-investment programs.

The United States maintains leadership with diverse regional strengths: San Francisco focuses on software and energy management, Boston concentrates on advanced materials and biotech, while Houston drives traditional energy sector transformation. Key European centers include London, Stockholm, Berlin, and Paris, each developing specialized cluster advantages.

Emerging markets show significant growth potential, with India representing 38% of Asian regional startups in 2024 and Southeast Asia receiving $27.8 billion in climate finance between 2018-2019. Israel maintained $613 million invested despite a 39% decline, supporting 946 active companies.

China continues massive deployment capital for renewable energy scaling, though venture investment data remains less transparent. African markets are developing 90% of climate solutions locally, indicating strong indigenous innovation potential.

If you want to build or invest on this market, you can download our latest market pitch deck here

How are traditional industry players from oil, automotive, and tech investing in climate technologies?

Large oil and gas companies remain among the most active acquirers in climate tech, representing 3 out of 5 most active climate tech acquirers through 2024, though their dominance is decreasing from previous years.

Major technology companies are driving clean energy investment to power AI infrastructure, with Microsoft and Amazon setting ambitious emissions targets that spur clean energy procurement. Meta and Google are investing heavily in geothermal and nuclear projects to secure reliable clean power for data centers.

Traditional automakers are investing extensively in electrification infrastructure, battery technologies, and charging networks as the industry transitions beyond internal combustion engines. Companies like Climate Investment, founded by members of the Oil and Gas Climate Initiative, continue deploying significant capital into decarbonization technologies that complement existing operations.

Manufacturing companies face increasing pressure to reduce emissions, driving investment in industrial decarbonization technologies including heat pumps, electric furnaces, and process optimization solutions. Strategic investments often focus on technologies that can integrate with existing operations rather than complete business model disruption.

The acquisition strategy typically targets technologies that provide competitive advantages in decarbonization while leveraging existing distribution channels, customer relationships, and operational expertise.

What deal structures and investment terms are climate investors currently offering?

Deal sizes increased significantly in 2024, with median deal size rising to $7 million from $6 million in 2023, while median pre-money valuations soared to $44.5 million from $31.5 million.

Later-stage focus is evident with 75% of deals in 2024 being seed and Series A, but growth in Series B and later stages indicates sector maturation. Series D and beyond investment fell 38%, while deal counts increased 20%, suggesting more companies reaching commercial viability.

Public credit guarantees are becoming important for scaling climate tech, with the US Department of Energy providing over $25 billion in loan guarantees. European initiatives like InvestEU are expanding guarantee coverage for climate tech startups, reducing investor risk.

Blended financing structures combine venture capital with government incentives, particularly under programs like the Inflation Reduction Act. These structures often include milestone-based funding tied to technical achievements, revenue targets, or emission reduction metrics.

Revenue-based financing is emerging for climate tech companies with predictable cash flows, particularly in energy efficiency and renewable energy projects. Convertible debt remains popular for early-stage companies due to valuation uncertainty and technology risk.

We've Already Mapped This Market

From key figures to models and players, everything's already in one structured and beautiful deck, ready to download.

DOWNLOAD

Which climate sectors are investors prioritizing most heavily?

Energy sector overtook transportation as the leading investment category for the first time since 2020, growing 12% to $9.4 billion, reflecting investor focus on meeting growing electricity demand from AI applications.

Sector	2024 Funding	Growth Rate	Key Investment Areas
Energy	$9.4 billion	+12%	Fusion energy, geothermal systems, nuclear SMRs, grid infrastructure, energy storage
Transportation	$7.7 billion	-36%	Autonomous vehicles, charging infrastructure, sustainable fuels, fleet electrification
Food & Land Use	$3.2 billion	-5%	Alternative proteins, precision agriculture, vertical farming, soil carbon sequestration
Buildings	$2.7 billion	+10%	Heat pumps, building management systems, sustainable materials, green data centers
Carbon Management	$1.2 billion	+140%	Direct air capture, carbon utilization, storage technologies, monitoring systems
Industry	$1.8 billion	-2%	Industrial heat pumps, green hydrogen, sustainable manufacturing, circular economy
Climate Adaptation	$800 million	+200%	Flood management, drought resistance, extreme weather monitoring, resilient infrastructure

If you need to-the-point data on this market, you can download our latest market pitch deck here

What major exits and acquisitions have generated returns for climate tech investors?

Climate tech exits surged 136% in 2024, with 177 total exits compared to the previous year, with acquisitions dominating at 92% of all exits and hitting record highs.

Notable exits include HyperStrong's IPO on the Shanghai Stock Exchange with a $1.56 billion market cap and Calpine's $16.4 billion equity acquisition by Constellation Energy, demonstrating the scale of capital entering clean energy assets. IPO activity remained limited with only 6 climate tech IPOs in 2024, up from 5 in 2023.

Strategic buyers led climate tech M&A as deal volumes hit new highs, with traditional energy companies, utilities, and industrial manufacturers acquiring technologies to accelerate their own decarbonization efforts. Two large IPOs occurred in India, while traditional IPOs remain scarce in other markets due to market conditions and investor preference for strategic acquisitions.

The exit environment indicates sector maturation, with successful companies increasingly attractive to strategic acquirers seeking proven technologies rather than experimental ventures. Private equity is becoming more active in later-stage climate tech companies with established revenue streams and clear paths to profitability.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

How do 2024-2025 climate tech funding totals compare to previous years?

Multiple measurement methodologies reflect different aspects of climate tech funding: conservative VC/Growth equity totaled $30 billion, broader climate tech equity reached $51 billion, while total including debt and grants hit $92 billion in 2024.

Since 2020, approximately 3,900 climate tech companies have raised over $182 billion across 6,200+ deals, with peak funding occurring in 2021-2022. The 2024 performance represents stabilization at a "new normal" level rather than continued decline, with improved deal quality and larger average transaction sizes.

The first half of 2025 showed $13.2 billion in venture and growth investment, down 19% from H1 2024, indicating continued challenges but at a slower rate of decline. Deal count decreased 11% to 653 transactions, suggesting better selectivity and focus on higher-quality opportunities.

Historical context shows climate tech funding peaked during the 2021-2022 period when venture capital was abundant and valuations reached unsustainable levels. The current environment reflects more disciplined investing focused on commercial viability and clear paths to profitability rather than pure technology potential.

The climate tech capital stack reached $86 billion in dry powder globally, indicating substantial available capital despite reduced deployment rates, suggesting the funding decline reflects selectivity rather than capital shortage.

What growth themes and capital movements are most likely for climate tech in 2026?

Energy security and independence will drive climate tech investment as geopolitical tensions make energy independence a national security priority, accelerating investment in domestic energy production capabilities, critical mineral processing, and grid resilience technologies.

AI-driven energy demand creates massive opportunities, with the International Energy Agency projecting data center electricity demand could reach 800 TWh by 2026. This drives investment in 24/7 clean baseload power including nuclear and geothermal, energy efficiency technologies for data centers, and grid integration solutions.

Technology maturation cycles will see successful climate tech companies increasingly moving from venture capital to private equity and infrastructure funding, creating opportunities for next-generation technology development and industrial deployment at scale. This graduation trend opens space for breakthrough technologies while providing capital for commercial scaling.

Sector diversification will expand investment beyond traditional renewable energy into industrial decarbonization technologies, climate adaptation solutions, and circular economy applications. Regional growth patterns will show significant expansion in Southeast Asia driven by climate vulnerability, India and China for massive renewable energy scaling, and Africa where 90% of climate solutions are designed locally.

The climate tech market is projected to grow from $37.5 billion in 2025 to $220.3 billion by 2035, representing a compound annual growth rate of 24.6%, driven by continued technological advancement, increasing energy security concerns, and unstoppable momentum toward global decarbonization.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Conclusion

The climate tech investment landscape is transitioning from hype-driven funding to strategic, security-focused capital deployment, with clear winners emerging in nuclear, geothermal, and carbon capture technologies.

While total funding declined, the sector demonstrates resilience through larger deal sizes, later-stage focus, and emerging opportunities driven by AI's energy demands, positioning climate tech for sustainable growth based on commercial viability rather than pure environmental impact.

Sources

Read more blog posts

-Climate Tech Business Models: Revenue Strategies and Monetization

-Climate Tech Funding Landscape: Investment Trends and Opportunities

-How Big is the Climate Tech Market: Size and Growth Projections

-Climate Tech Investment Opportunities: Where Smart Money is Going

-Climate Tech Innovations: Breakthrough Technologies Shaping the Future

-Climate Tech Challenges: Key Problems and Market Barriers

-Top Climate Tech Startups: Leading Companies to Watch

-Climate Tech Trends: Market Shifts and Future Directions

-Will Climate Tech Grow: Market Outlook and Growth Potential

Back to blog