Despite the Global Decline in VC Funding, Cleantech Shows Resilience

The Global Startup Ecosystem Report Climatetech Edition from Startup Genome and the Global Entrepreneurship Network launched today at the 28th session of the Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change. The report explores the potential of Cleantech and the Blue Economy, examining the current state of startup activity and associated investments in those sectors and rankings reflecting which global ecosystems are currently driving innovation.

This report is a combined edition examining both Cleantech and the Blue Economy, two tech startup sub-sectors that are closely interlinked but have unique characteristics. Cleantech refers to sustainable solutions in the fields of energy, water, transportation, agriculture, and manufacturing. The Blue Economy is defined as the sustainable use of ocean resources for economic growth, improved livelihoods, and job creation while preserving the health of the ocean ecosystem.

Cleantech Key Findings

• Between H1 2020 and H1 2023 Cleantech Series A funding has increased 73% and Series B funding has increased 166%
• In Q2 2023, Cleantech increased its share of Series A funding to 25% compared to all other tech startup sub-sectors, up from 14% in Q4 2022. Cleantech’s share of Series B funding increased from 10% to 20% over the same period.
• Cleantech has the highest number of Series A deals from Q4 2022 to Q2 2023 compared to all sub-sectors, and the second-highest number of Series B deals (after AI & BD).
• Despite the global decline in VC funding, Cleantech’s Series A funding has increased 15% in absolute terms between Q4 2022 and Q2 2023 — the biggest increase among all sub-sectors. 

Blue Economy Key Findings

• Europe has surpassed North America in its share of Blue Economy Series A funding.
• In H1 2023, Series A funding in the Blue Economy increased 31% compared to H1 2021.
• The median Blue Economy Series A deal has increased 40% from H1 2021 to H1 2023. 

“Entrepreneurs must lead the charge in addressing one of the world’s most pressing challenges, and this report is a testament to our commitment to fostering Cleantech innovation, including new ways of approaching the Blue Economy,” shares JF Gauthier, Founder and CEO of Startup Genome.

“We need to increase the supply of innovators — from universities, labs, incubators, and garages around the world — and we need to connect them to the corporate partners and governments who can scale these innovations to have a sustainable global impact,” says Todd Allmendinger, Director of Consulting and Research, Cleantech Group.

The Climatetech Edition aims to provide information for founders, investors, and policymakers interested in understanding the current landscape of both sub-sectors, encouraging further Cleantech and Blue Economy activity. The report includes contributed articles from our research partners Canada’s Ocean Supercluster, Cleantech Group, La Zone Bleue, and Mississippi Development Authority. Read more on global trends and specific ecosystem highlights in the full report here.