Climate Tech's global momentum set a record $26.8B in venture funding for the first half of 2022 through 968+ deals. The second quarter has slowed quite significantly, month by month, compared to the first quarter. We expect a softer second half that will exceed $40B for the full year.
HolonIQ’s Impact Intelligence Platform tracked 968 Climate Tech venture funding rounds around the world for the first half of 2022. The 950+ Climate Tech companies are defined by their revenue alignment with our open-source Climate Tech taxonomy and are baselined against the 1,100 funded companies we tracked through 2021.
As of 30 June 2022, there are now 47 Climate Tech Unicorns around the world who have collectively raised over $46B+ of total funding in the last decade and are now collectively valued at $131B+. The first half of 2022 also saw 98 Mega Rounds > $100M including 35 Mega Rounds > $200M which compares to ‘just’ 61 Mega Rounds > $100M for the full year 2021.
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Based on HolonIQ's Open Source Climate Tech Taxonomy, 1H 2022 has seen much higher levels of investment in renewables, biosphere, data+finance and most significantly the built environment.
We expect to make major improvements in the fall to our open-source taxonomy at our Global Summits following workshops over the summer in New York, London and Sydney.
Over the last quarter of 2021, HolonIQ led the development of an open-source taxonomy for climate technology and teamed up with regional partners around the world to identify the 1000 most promising Climate Tech startups globally. In the lead up the 26th UN Climate Change Conference of the Parties (COP26), HolonIQ’s inaugural Climate Tech 1000 includes Climate Tech startups and companies that are making a substantial contribution to climate change mitigation or adaptation through the application of new technology or scientific knowledge.
The Global Climate Tech Landscape 1.0 is an open-source taxonomy for climate innovation, providing a common structure and language for identifying, tracking and making sense of the breadth and depth of innovation happening in climate technology globally. The purpose of the Global Climate Tech Landscape is to create a granular and global open-source framework to enable insights such as:
Where are we seeing solutions and innovation? What is the velocity of formation, funding and growth? How is this changing over time? Where are the gaps? When compared to the challenges we are facing, which areas are under-weight or white-space? Where are we seeing traction and momentum? Where might new science and technology find a commercial market to apply new novel innovations and achieve self-sustainability?
Licensed under Creative Commons and as an open source project, the taxonomy is available for anyone to support their own work in climate innovation, to identify an area of focus, or to locate their organization and their peers on the landscape.
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Q1 set a $5B venture run rate each month with 160-200 deals. Q2 saw progressive fade to just under half the value and volume by June settling at over 100 deals representing $2.4B of investment.
All major markets delivered record setting first halves in venture funding. Based on regional decelerations in investment, we've made a rough macro assumption that 2H 2022 will represent half of the investment levels in 1H 2022. If this scenario played out, China and India would outperform 2021 with US and EU falling just short compared to 2021 levels.
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