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The IRA isn't yet luring new investors to climate

Data: PitchBook; Note: Includes investors with at least one climate tech investment; Chart: Axios Visuals

The number of venture investors that made at least one climate tech investment in the U.S. this year is down 20%, according to PitchBook.

Why it matters: The climate tech sector needs a broader array of investors if the space is going to play a role in decarbonizing the U.S. economy. Government dollars can't do this alone.

Big picture: The Inflation Reduction Act and its impact on climate change and the energy transition is centered on stoking a surge in private investment — a wave of capital that joins and ideally eclipses taxpayer dollars.

Driving the news: To figure out just how many funds are investing in climate tech, we asked PitchBook to tally so-called "unique investors" — firms that made at least one venture investment in the space.

What they found: The number of these investors is dropping. Down 20% year to date, with a drop of 14% last year compared to the prior year.

Of note: The fall-off shows that the IRA has yet to gain the traction among private investors that its champions had hoped.

Bottom line: What exactly will it take for more funders to participate?

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