Investment & Innovation Trends

In 2024, global energy VC deal values climbed to $16.6 billion, an 11.4% increase over the previous year.

Even as deal counts declined over 2023’s peak, larger transaction sizes reflect investor enthusiasm and a pace of innovation that underscore the sector’s resilience amid a subdued broader market. With a diversified energy mix and the expansion of fossil fuel alternatives as main drivers, late-stage and venture-growth valuations rose to levels not seen in several years.

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New Energy Technologies

Share of energy VC deal count by stage

Energy VC deal activity with CVC participation

Median late-stage valuations reached $42.3 million, their highest level in a decade, and venture-growth pre-money valuations rose to $90 million for the first time since 2017.

These investors are motivated by strategic synergies that position them to tap the value of new insights and potential commercial agreements as a key component of their long-term competitiveness. Meanwhile, in an environment where legacy power sources remain essential to energy security, oil & gas companies are adapting through innovations in operational efficiency, equipment monitoring and emissions reduction.

Nontraditional investors (NTIs), including CVCs, have consistently accounted for more than half of total energy venture deals since 2021.

Source: PitchBook Geography: Global *As of DECEMBER 31, 2024

Energy VC deal activity

Median energy VC pre-money valuation by stage

Explore 2021 subsector trends

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Spotlight on Mobilitytech

Pre-seed/seed and early-stage deals comprised 62.8% of global volume, up from 59.8% in 2023 and reflecting long-term confidence in emerging technologies as critical to energy security.

Explore 2021 investment & valuation trends

CVCs continue to play a significant role in the growth trends defining energy investment, participating in 30.3% of all energy deals and contributing to 59.6% of total capital invested.

Explore 2021 climatetech exit trends

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INVESTMENT & INNOVATION TRENDS

“The notion of ideation simply doesn’t go away. Volume decreases in a downturn, and criteria for investing get tougher, but even in the biggest slumps, the reality is that there’s money being deployed. Innovation is not being stifled. ”

“There’s a broad understanding that energy demand is going to keep growing, no matter what. Investors know that developing new technologies is essential to creating stability and keeping up with demand, and that gives them a level of confidence.”

Partner San Francisco

Matt Kirmayer

Partner Washington, DC & London

Elina Teplinksy

Climatetech: 2023 Year in Review

Climatetech: Investment Trends & Macro Influences

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Partner Corporate

Veronica T. Nunn

“As with all new legislation, it takes time to clarify meaning and implementation, but that's an opportunity to assess and understand long-term implications and align them with investment goals.”

“Companies that have developed expertise in extracting hydrocarbons from underground reservoirs can now reconfigure their operations to inject captured carbon into those sub-surface structures”

Partner Energy

Gavin Watson

Emerging Growth & Venture Capital

Counsel Houston

Margarita Kelrikh

“Trends in Silicon Valley are now intersecting with what has been happening in the energy sector. Solving the energy demand problem means investment in technologies that improve existing fossil fuel infrastructure.”

Partner Tax

Don Lonczak

“The manufacturing category continues to show resilience, which may be connected to increased interest among investors on the basis of the generous incentives accessible under the IRA.”