Earth day, on April 22, SOSV published the SOSV Climate Tech 100, a list of the best startups that we have supported from their early stages to fight climate change. There’s always some valuable information built into a list like the 100’s. A TechCrunch story captured the investment prospect, and an SOSV article delved into the category breakdown and company founder profiles.
But what can the founders of the Climate Technology Investor List learn? In other words, who invested in the Climate Tech 100? We delved into the “who’s who” list, which had over 500 investors, and here’s what we found.
An active but fragmented landscape
If you think that 500 investors in 100 companies is a lot of investors, you are right. There are clearly a lot of investors interested in climate technology, and most are generalists just testing the waters. For the Climate Tech 100, around 10% of investors put their money in more than one startup and only seven (less than 2%) wrote a check to four or more. These included Blue Horizon, CPT Capital, EF, Fifty Years, Hemisphere Ventures and Horizons Ventures.
This model fits well with data from PwC, which revealed that 2,700 unique investors had supported 1,200 startups in its State of Climate Tech 2020 report covering the period 2013-2019. The report found that only 10 out of 2,700 companies entered into four or more climate technology agreements per year, on average, during the period 2013-2019. The most active companies are listed in the table below.
Capital deployed in climate technology increased to five times the overall growth rate of venture capital over the period 2013-2019.
There is reason to believe that fragmentation will decrease with the launch of more funds focused on climate technology. Four funds worth over $ 1 billion each have been launched since 2020 that match the description (see graph below).
It is also encouraging to see that the capital deployed in climate technology has increased to five times the overall growth rate of venture capital over the period 2013-2019.
Even so, climate technology still only accounted for 6% of total venture capital deployed in 2019, so there is plenty of room to expand.