Wed. Dec 1st, 2021

Investment in climate technology is booming in London, where the total value of startups in the sector has almost tripled in the last year to $ 28 billion. In front of rival technology hubs in Europe and beyond.

London is only second only to Silicon Valley in terms of the size of its climate technology ecosystem, which is filled with 416 such startups, according to a new report from London Partners and Dealroom.

Climate technology startups are classified as technology companies working to reduce greenhouse gas emissions or address the effects of climate change.

After the agreement shifted a new investor focus to green solutions, VC investments in the capital’s climate technology startups grew more than six times (x 6.3) to $ 3.3 billion. in VC investments since 2016 – faster than (x4.9) the global average.

And VCs obviously prioritize the sector when it comes to their portfolios: London-based VCs have raised over half of all European dedicated climate technology funds in the last two years, and the city is home to 18 dedicated climate technology VCs, more than elsewhere in Europe.

An example of the biggest names in climate technology investment in the UK is the VC company 2150, which focuses on tackling climate change in urban environments and recently raised the second largest climate technology fund in Europe this year to $ 312 million.

“London, and the UK in general, is clearly one of the leading centers of climate technology worldwide, and it’s exciting to see solutions and technologies that can have a gigaton-level impact on scale being built and supported here,” partner and co-founder of 2150 said Christian Hernandez.

All of this means that the UK now ranks fourth globally for $ 4.3 billion in climate technology investment. invested since 2016. The US is miles ahead with $ 48 billion. investments in the last four years, followed by China with $ 18.6 billion. and Sweden, which was slightly ahead with $ 5.8 billion invested.

Already this year, investors have donated 1.1 billion. USD into London climate technology startups – almost reached 1.2 billion. USD throughout 2020.

Octopus Energy’s growth of DKK 600 million USD in share capital in September helped boost this growth, as did nuclear technology startup Nucleo’s 118 million. USD early VC rise in August, and food waste startup Olios 43 billion. $ Series B round in September.

And London is number two in the world only after Silicon Valley for the number of rounds raised by climate technology startups – suggesting an encouraging active early ecosystem.

Remus Brett, partner at VC firm LocalGlobe, was optimistic that the current boom would translate into future solutions.

“With sustained investment and the right support, these companies will have the tools they need to successfully reduce greenhouse gas emissions and combat the climate crisis,” Brett said.

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