Climate Tech Funding On The Rise!
Cut Through Ventures report on Australian Venture Capital funding for 2024 so far is here and climate tech again proves a popular and powerful choice for investment.
$1.5B has been raised by Australian startups this year so far and Climate Tech continues to shine!
Last year Climate Tech companies raised $268M from 41 deals – already Q2 report has outshone last year’s figure with Climate Tech companies raising $344M from only 10 deals coming second to fintech, raising $546M from 6 deals.
However, when you look at the top raises across the year so far, there are a few more companies with climate credentials categorised in other sectors. Melbourne-based Relectrify for example is categorised as Hardware, raised $26M, as did Xefco with a plant in Geelong who raised $11M, and farming software to help grazers reduce their carbon emissions AgriWebb also raised $11M.
This brings the total raised by climate tech companies closer to $381M from 13 deals however, there are 50 categories of climate tech encompassing agri, food, nature, storage, resources, carbon accounting and so on which can result in more startups who fit into the broad church of climate tech that are missing.
Despite the appalling gender funding gap, climate tech again outperforms its peers – with two of the four significant raises by women-led companies falling into the climate tech sector. Climate accounting software company, Sumday and Melbourne- based circular solution to plastic wrap, Great Wrap, both raising $5M each.
Diving into the cap tables of these climate tech companies, you’ll find that a significant amount of investment is coming from international venture capital. Hydrogen startup, Hysata’s $172M series B, the largest series B raise in Australia, was led by US based bp Ventures and Hong Kong based Templewater. Deep Tech startup, Samsara Eco’s $100M Series A raise was led by Singapore-based Temasek.
Climate tech continues to be a sector that not only helps solve the greatest challenge of our time but also stimulates the economy, attracts international investment and generates green jobs for Australia, while being more inclusive and diverse in leadership.
Cut Through Ventures does a brilliant job of providing data and insights into the state of Australian startup funding, and to read the full report for Q2 head here!
Marking out crudely in blue all the climate solutions which raised capital in 2024.
