Axios Pro Exclusive Content

Climate tech VC funding dropped 30% in 2023

an illustration of a downward stock chart surrounded by red, green and yellow squares and cutouts of a 100 dollar bill

Illustration: Tiffany Herring/Axios

Investments in climate tech venture capital and growth equity dropped 30% in 2023, compared to 2022, according to a new report from CTVC and its Sightline Climate research group.

Why it's the BFD: Climate tech wasn't immune from the broader VC downturn and has faced its own growing pains caused by high interest rates, Katie writes.

Details: Climate tech VC funding for 2023 clocked in at $32 billion, with deal count dropping 3% compared to last year, the first deal number decrease since 2020.

  • Later stage investment dropped a lot — 41% for growth stage — while early stage fared better with a 12% drop for seed.
  • There was a 55% drop in investing in food and land use.

What's next: While expectations are 2024 will see lower interest rates that will ease some of the macroeconomic environment, the presidential election could put climate tech in the crosshairs, raising new political challenges.

Go deeper