"Now is the best time to launch a climate tech startup," "the climate economy is about to take off," "the fight against climate change will shift more in the next four years than it has in the past forty"...
Hard to miss the doom-laden prophecies that certain media outlets have been peddling lately.
Beyond the superlatives, this media coverage reflects a more tangible reality: working on climate has never been more in vogue.
With €11 billion invested in 2021 compared to €1.1 billion in 2017, climate tech is the fastest-growing segment in Europe.
A recent study published by Dealroom highlights the fastest-growing trends and verticals.
Renewable energy, alternative proteins, decarbonized industry, recycling, CO2 capture solutions…
What do these sectors have in common? A mission centered on decarbonizing the economy and the ability to combine profitable business models with limiting climate impact.
Last year, 13% of VC funds invested in climate startups, compared to 5.9% in 2017.
Climate tech is second only to fintech in terms of invested capital.
Beyond the numbers, the trend reveals one thing: investment is being redirected toward a sector whose usefulness is hard to question. Its other great strength is attracting Europe's best talent. We see this every day at Asterion: the quality of projects coming our way keeps getting stronger.
Another factor explains the current shift: regulatory changes and the rise of public investment.
For example, the latest climate legislation passed in the United States will channel over $800 billion in public funds toward climate tech—and likely an equivalent amount in private investment through knock-on effects over the next decade.
Regulatory changes, rising investments, influx of talent: "there has never been a better time to start a climate tech company," says Julie Gosalvez, Chief Marketing Officer at Climeworks, in this Sifted article.
Robinson Meyer, in The Atlantic, draws an analogy with the turning point tech experienced in the 2010s:
I remember that fateful moment around 2010 when the valence of the industry switched—it was right around when The Social Network came out—and working in tech went from being a career choice for dorky optimists to the default career track for many ambitious college students. A similar switch is coming for companies working on climate change: The opportunity will be too large, the money too persuasive, the problems too intriguing.
Asterion's mission is to support the entrepreneurs who are fixing the world, in climate tech and impact at large.
With €8.5 million invested in 10 startups over eighteen months, we are already one of the most active impact funds in Europe at seed and pre-seed stage.
In 2023, we will triple this amount to fund and support between 15 and 20 startups per year.
We'll tell you more very soon…