Angels are keeping VC investment alive in climate tech
Angels and other early-stage investors are still pouring money into climate tech, even as later-stage fundraising rounds have sagged, per data from Pitchbook.
Why it matters: The flow of money into the sector's newbies comes as later-stage fundraising rounds have sagged amid the stiff market headwinds and overall funding slowdown, as Axios previously reported.
What's happening: Angel and seed rounds for climate tech accounted for $283.3 million raised in Q1.
- That's more than 40% of all the early-stage money raised in climate tech in all of 2021.
- Accelerators are among the most active early-stage investors, Axios previously reported.
Yes, but: Russia didn't invade Ukraine until February 24. The Commerce Department didn't accept Auxin's anti-circumvention petition until March 25.
- In short: Expect to see a decline in climate-tech investment data for Q2.
Yes, and: "In the long term, the attack on Ukraine and resulting calls for energy independence in Europe are likely to accelerate climate tech investment," Pitchbook says.
What they're watching: Increased investment in hydrogen, as well as solar, wind and nuclear.
- Intense interest in the battery supply chain, from metals and minerals exploration to mining, refining and manufacturing.
- And a ramp-up in the buildings sector, such as low-carbon cement, HVAC innovations and efficiency measures.