Investment trends, market analysis
& authoritative Commentary
Though the climatetech sector has not been immune to the challenges facing the VC market, the long-term bets placed on climate innovation continue to drive the space forward.
Climatetech VC activity slowed in 2022 from the year prior, but still saw its second-biggest year ever with $24.5 billion in total investment. The sector also saw a record $2.1 billion in total first-time financing deals in 2022.
DOWNLOAD THE FULL REPORT
ABOUT
PILLSBURY
Pillsbury lawyers inform companies around the world and across industries as they evolve and adapt to the challenges of the energy transition. From advancing new technologies to developing strategies for established companies to meet decarbonization goals, we provide energy stakeholders with comprehensive guidance based on vast industry experience and a track record of innovation and success.
DOWNLOAD THE FULL REPORT
Energy Transition Resource Center
CLIMATETECH
Climatetech VC activity with nontraditional investor participation
Climatetech VC deal activity
with CVC participation
Median deal size increased for angel and seed by 10% and the early stage by 24.6% but declined by 1.8% for the late stage and by 7.4% for venture growth.
Despite a pullback in overall VC dealmaking in 2022, the sector has shown resilience, with elevated deal value on a historical basis. Notably, nontraditional and corporate VC (CVC) investors continue to show increased interest in climatetech innovation, with their activity reaching its second-highest annual level of deal value in 2022 and a record deal count for CVCs.
Global governments continue to rapidly adopt ambitious sustainability and net-zero goals, and climatetech innovation continues accelerating to meet critical environmental needs.
Source: Pitchbook Geography: Global
As of December 31, 2022
Climatetech VC deal activity
Median climatetech VC deal value
by stage
Explore 2021 subsector trends
Download the second report in our series:
Spotlight on Mobilitytech
The $22.4 billion aggregate deal value for nontraditional investors nearly matches the level of traditional VC dealmaking completed in 2022.
Explore 2021 investment
& valuation trends
CVC deal activity set a record for the number of deals completed, despite moderately lower aggregate deal value.
Explore 2021 climatetech
exit trends
Download Our Spotlight on Mobilitytech
DOWNLOAD THE FULL REPORT
2022 Year In Review
“Economic uncertainty has enhanced the value of distributed sustainable energy solutions, particularly in Europe, where reliance on Russian supply agreements has become a significant liability.”
Counsel
Finance
“Strategics and incumbents are embracing the fact that it’s in everyone’s best interest to support the growth of this ecosystem and that it will only help them in the future.”
“If we are serious about deep decarbonization at all levels, this is a long-term horizon. If we’re going to
move the needle in a measurable fashion, we’re going to need investors of all types.”
Shellka Arora-Cox
Counsel
Corporate
Paul Casas
Partner
Finance
Alicia M. McKnight
Climatetech:
2021 Year in Review
Climatetech:
Venture Dealmaking & Cross-Border Trends
VIEW THE REPORT
VIEW THE REPORT
“Prominent investors have claimed that the next wave of unicorns will be companies developing green hydrogen, climate-smart agriculture, green steel and green cement and that borders will not exist for such investments.”
Partner
Corporate
Stan Lewandowski
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
Emerging Growth & Venture Capital