Key Takeaways
Despite potential policy headwinds, investors continue to find compelling opportunities in climate tech. The steep economic costs of climate change, and the relative cheapness of core renewables, are driving a strong long-term outlook for the sector.
$7.6B VC invested in US clean energy and power companies in 2024
Investments grew 15% YoY, bolstered by growing demand for power and incentives in the Inflation Reduction Act (IRA) and the CHIPS and Science Act.
3 in 4 Of deals in 2024 were in seed and Series A companies
The resiliency of early-stage activity signals a pipeline of future innovation and ecosystem growth.
57% Of climate tech companies need to raise in the next 12 months
The percentage has increased even as most companies are reducing burn.
Clean power deals hit historic highs
Venture deal counts in clean energy and power companies reached a record of 382 in 2024.
The critical role of mature renewables like solar, the large energy demands of technology like AI and the move toward greater electrification suggest long-term economic drivers may outweigh near-term uncertainty.
Source: PitchBook Data, Inc., SVB proprietary taxonomy and SVB analysis.
Source: PitchBook Data, Inc, SVB proprietary taxonomy and SVB analysis.
Climate tech outperforms in first-time fundraising
First funding rounds for climate tech startups – a proxy for new company formation rates – have outperformed the overall VC ecosystem since 2019.
However, with fewer investors participating beyond Series B compared to 2021, early-stage companies may face challenges graduating to later rounds.
CFOs cite government regulation as top concern
As the second Trump administration moves away from climate-friendly initiatives, government regulation tops the list of concerns for climate tech CFOs, followed by tariffs and supply chains.
While climate tech is particularly vulnerable to policy changes, it isn’t about red vs. blue. In fact, some of the reddest states in the country are receiving the most VC investment in clean energy projects.
Source: SVB’s State of the VC-Backed CFO 2025 and SVB analysis.
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