Climate tech startups raised $8.1 billion in the first quarter, near record amounts of money that suggest 2023’s quiet close might have been more of a blip than the sign of a protracted downturn.
The figure, contained in a new report from PitchBook, shows that climate tech hasn’t succumbed to the same slowdown that has dragged on the rest of the venture community.
While the number of deals was down slightly quarter-over-quarter, the value was up nearly 400%, according to the report. A deeper look into the $8.1 billion raised in the first quarter shows that investors focused their attention on materials, including green steel and battery materials and minerals.
Three early-stage firms closed the most deals. Climate Capital landed 94, Lowercarbon Capital closed 70 and SOSV came in with 59 (a figure that would be higher if you included its Hax and IndieBio programs). Despite those tallies, this year started with fewer deals closing compared with Q4 2023. Total deal count was down 20% this quarter to 244.
Despite the lower deal count, the amount of money raised by climate tech startups in Q1 was second only to Q3 of last year. A handful of noteworthy deals helped keep the sector buoyant.