Cleantech

Although investment has slowed, the vertical still ranks as the third most popular by total VC rounds this year.

Investment rises 44% this year as cleantech continues to attract investors.

ETF Partners has led a €26 million funding round for Amber, which makes software for buying and selling household energy

PE is diving deeper into European clean energy, shifting from subsidy-driven plays to commercially viable, tech-enabled investments with real returns.

Brookfield buys National Grid’s US renewables for $1.74B, showcasing PE’s resilient appetite for clean energy.

As investment in energy infrastructure continues to grow, PE firms are turning to large-scale battery storage to solve the issue of storing intermittent energy sources.

Energy transition infrastructure is expecting another decade of good returns

Europe is on track for a record year for PE cleantech deal value

2024 has already seen the third highest annual transaction volume in the sector.

Chinese green hydrogen companies like SHPT and FTXT Energy are leading the pack.

European cleantech startups raised a record amount of capital in the first three months of the year.

Mega-rounds accounted for over half of European VC deal value in Q1.

The success of companies like Helion and Commonwealth Fusion Systems have paved the way for cleantech’s moonshot project.

Shell Ventures has historically led the pack of fossil fuel companies in investing in cleantech, with 44 deals since 2018, according to PitchBook data. But the oil giant’s new CEO, Wael Sawan, has scaled back the Shell’s low carbon solutions team as well as its hydrogen business. The moves raise questions about Shell’s recent leadership in climate tech deals at a time when fossil fuel company participation in the sector is at an all time high.

Although VC dealmaking for European cleantech startups has fallen this year, the vertical has seen less severe declines than others.

PE is targeting the battery storage sector as the rise in electric vehicles, coupled with a move to clean energy, boosts the value of these assets.

PE investment in India remains robust, driven by a growing middle class and modernizing economy creating growth opportunities in sectors like healthcare and clean energy.

As the market for lucrative assets with positive effects on the environment and society grows, impact investors are finding it easier to source deals.