Oct 27, 2021 - Economy

The green venture capital surge

Data: PitchBook; Chart: Will Chase/Axios
Data: PitchBook; Chart: Will Chase/Axios

Climate tech startups raised nearly $13 billion in the third quarter across over 200 deals, making 2021 a record VC year already with months to go, per new PitchBook analysis.

Driving the news: Electric transportation received the most investment. Third-quarter deals include the U.S. electric vehicle company Rivian's $2.5 billion fundraise and Chinese battery firm Svolt's $1.6 billion haul.

The big picture: The Q3 tally is a 42% climb over Q2 and 38% over the same three-month stretch last year.

  • It's the latest sign of widening investment in clean tech companies and deployment, from VC firms but also other big funds and investors.

Why it matters: While big carbon cuts are possible with accelerated deployment of existing tech, new and evolving tech is needed for long-term net-zero targets.

Catch up fast: Climate tech spans EVs, climate-friendly agriculture, advanced buildings, renewables and grid systems, carbon removal and much more.

The intrigue: PitchBook is expanding its climate tech work, making it a "dedicated sector" with a dedicated analyst who will provide in-depth research, spokesperson Jane Footh said.

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