TLDR:
- In Q1 2024, the carbon and emissions technology sector received $2.7 billion in VC investments, the lowest since Q1 2021.
- The investments in 2023 totaled $17.7 billion across 1,133 deals, showcasing growing investor confidence in sustainable technologies.
In 2023, the carbon and emissions technology sector experienced substantial growth, securing a record $17.7 billion in venture capital (VC) investments. However, the first quarter of 2024 saw a decline in investments, with $2.7 billion being raised, the lowest quarterly value since Q1 2021. The 2024 Carbon & Emissions Tech Overview by PitchBook’s Institutional Research Group sheds light on the latest trends and market dynamics shaping the carbon tech landscape.
The investments in 2023 were spread across various categories, such as Direct Air Capture, Point Source Carbon Capture, Carbon Utilization, and more. Some key insights from the report include stable median pre-money valuations for companies, a median deal size of $4.2 million in Q1 2024, and a decline in exit activity from $3.8 billion in 2021 to $1.9 billion in 2023.
Key drivers of investment in carbon capture, utilization, and storage (CCUS) technologies include tax incentives, government funding, and market shifts towards high-integrity carbon credits. The report also highlights sector segmentation, top VC investors in the sector, and investment trends in carbon tech, industry applications, built environment, and land use.
Overall, the carbon and emissions technology sector continues to attract investments and drive innovation in sustainable technologies to combat climate change. The full report is available on the PitchBook platform for further insights into the industry.
