Climate tech feels bite of funding winter

Image credit: Climate Tech VC

It’s no secret that venture capital spending is down across the board, and the funding winter has hit climate tech especially hard.

As the graphic by Climate Tech VC shows, the decline has been precipitous. In the first half of 2022, climate tech firms attracted US$23.6 billion in VC funding, while the figure for the same period this year was US$13.1 billion.

That means funding fell 44% year on year, a worrying trend for a sector many see as critical to the future of our planet.

See also: Southeast Asia tech funding set for worst year since 2016

The Climate Tech VC article accompanying the graphic does offer some reasons for optimism, noting that the overall deal count is up 8% in the first half of this year compared to the same period in 2022.

In addition, the third quarter of each year is consistently the top quarter for climate tech funding, so the upcoming months should tell the full story.