TLDR:
- European energy tech raised $3.1bn in VC funding during the first quarter of the year
- Energy sector surpasses fintech as Europe’s top performing industry for VC investments
The European clean energy transition fueled a recovery in venture capital activity during the first quarter of the year, with energy startups securing $3.1bn in funding. This surge in funding for the energy sector saw it surpass fintech as the top industry for VC investments in Europe, marking the fourth consecutive quarter as the most funded sector. The investments in energy startups included a $330m investment in Electra, a Paris-based electric vehicle charging firm, $325m for H2 Green Steel in Sweden, and $253m for Deep Green in London.
Energy sector funding outstripped other sectors like health, fintech, transport, and enterprise software, showcasing the ongoing support for clean tech innovation. Investment in cross-sector climate tech also remained strong, with firms raising $3.5bn during the period. Overall VC investment in Europe rose by five per cent year-on-year, hitting $13.7bn for the quarter, indicating a broader recovery in European venture capital investment.
Investors and experts in the field highlighted the importance of continued support for climate tech, with new regulations and incentives driving investments in energy and climate tech sectors. The UK retained its position as the leading country for VC investment in the first quarter of the year, further solidifying its role in the global clean tech market. The surge in funding for energy startups demonstrates the growing interest and support for sustainable and innovative solutions in the energy sector.
