Climate Tech Proves More Resilient; Silicon Valley Bank Releases Annual Climate Tech Report
SAN FRANCISCO, June 21, 2023 /PRNewswire/ -- With global efforts underway to achieve a goal of net-zero greenhouse emissions by 2050, the climate technology sector is more stable than other sectors, according to a new report from Silicon Valley Bank (SVB), a division of First Citizens Bank. While the venture capital (VC) ecosystem has experienced the most significant valuation correction in over a decade, climate tech valuations have remained at or above their 2021 levels since investors recognize the growing opportunity for climate technologies.
- According to the report, the number of active investors in seed-stage U.S. climate tech companies decreased by 37% while the decline in active investors in seed-stage fell by 51% across broader tech, reflecting an optimistic view for the future of climate tech.
- SVB's Future of Climate Tech report provides an in depth look at current fundraising activity and challenges, investment trends, and emerging technologies.
- Since the start of 2022, investment in climate tech has outperformed broader tech sectors and is now 20 percentage points above the tech market at large.
- Median series D+ climate tech valuations are up 13% from the peak in 2021, while the median series D+ tech valuation (excluding climate tech) fell 67%.