The 2018- H1 2023 The State of Climate Tech Venture Capital Report, launched in partnership with CE-Ventures, tracks the evolution of deals and funding targeted at Climate Tech startups, the breakdown of sectors and industries, and the most active investors contributing to its growth.
Access our suite of Q3 2023 reports here!
Climate Tech has witnessed substantial expansion in the last half-decade, particularly in financing emerging startups within the sector. From 2018 to 2022, the industry achieved an impressive Compound Annual Growth Rate (CAGR) of 62%, culminating in a peak of $270M in capital deployment in 2022. This upswing in funding can be attributed to notable transactions such as Pure Harvest Smart Farms' groundbreaking MEGA deal worth $181M, which marked a significant milestone for the entire industry. Another contributing factor to the thriving Climate Tech landscape was the $400M private equity buyout deal executed by Yellow Door Energy.
Overall, Climate Tech funding accounted for 5% of the total capital invested in the MENA and Türkiye region over the five-year period.
The evolution of Climate Technology has emerged as a beacon of hope amid the global challenges posed by climate change, which has become an urgent issue of our time. This sector encompasses a diverse range of innovative solutions and practices specifically designed to mitigate greenhouse gas emissions and tackle climate change.
Türkiye outperformed other countries in the MENA region by closing the highest number of Climate Tech deals, capturing a 37% share between 2018 and 2022. Meanwhile, the UAE, set to host COP28, attracted the lion's share of Climate Tech funding during the same period.
Renewable energy emerged as the leading sub-industry within Climate Tech, accounting for 18% of all deals closed between 2018 and 2022. Notably, horticulture secured the highest funding, primarily driven by Pure Harvest Smart Farms' transactions. This diversification into different sectors underscores the industry's commitment to developing innovative solutions, including precision farming, climate-smart agricultural practices, afforestation, and carbon capture techniques.
The increasing interest in the sector is evident through the involvement of 150 investors in Climate Tech between 2018 and 2022. Flat6Labs, an Egypt-based firm, emerged as the most active investor, supporting 15 Climate Tech deals. followed by the Saudi KAUST Innovation Fund, which contributed to 10 deals.
The growth and development of Climate Tech in the MENA and Türkiye region over the past five years underscore the increasing commitment to combatting climate change and transitioning towards a more sustainable future.
What is in the report?
The 2018- H1 2023 The State of Climate Tech Venture Capital Report offers strategic insights into the growth of the Climate Technology contribution to the Venture Capital space in the MENA region and Türkiye. This report covers funding and deal evolution of Climate Technology in the region and across different sectors and industries.
Who is it for?
Whether you’re a private investor, a VC, an investment company, a CVC, or working in corporate, this report gives an overview of the ecosystem. It caters to a diverse audience, including any curious minds who want to use the data in this report to track Climate Technology investment activity.
You can also see in which country and industry the investment activity focused in terms of deals and capital deployed, allowing you to leverage insights and make wise choices.
The report can also be used by consultants looking to identify Climate Technology innovation trends.
Last but not least, government entities searching for investment opportunities will also find valuable information to make informed decisions.
Where is this information from?
The report was 100% created using data from MAGNiTT. MAGNiTT is the leading VC verified data platform and offers a comprehensive directory of technology innovation trends. Our unique SaaS solution includes investment directories listing startup venture funding across the Middle East, Africa, Pakistan, and Türkiye, and now Singapore. By using MAGNiTT, you will also get access to market sizing tools to visualize investment growth and trends across various industries, geographies, and stages, as well as comparison tools for benchmarking geographies, industries, and investor performance. Furthermore, MAGNiTT offers exit comparisons by examining mergers and acquisitions.
Learn more about MAGNiTT's Data Methodology.
About the Partner:
CE-Ventures is the corporate venture capital platform of Crescent Enterprises, a diversified global business with a presence in over 20 countries. CE-Ventures focuses on strategic investments in early to growth-stage startups across various sectors, with a commitment to promoting sustainability and innovation.