TLDR:
- European venture capital investing heavily in energy sector, particularly in e-mobility and hydrogen companies.
- $5.7 billion raised in the first half of 2024 for Europe’s energy sector, marking a significant trend in VC investment.
In the latest edition of Smart Energy’s Power Playbook, data on venture capital financing in Europe reveals a significant focus on the energy sector, with e-mobility and hydrogen companies thriving. The first half of 2024 saw a total of $5.7 billion being raised for Europe’s energy sector, signaling a substantial trend in VC investment. This figure is particularly encouraging when compared to the competitive landscape between tech financing in the EU and the US, with European VC investment equaling that of the US but making up a higher proportion of total funding.
European VC investment is concentrated in the UK, Germany, and France, with top deals including investments in companies like Highview Power, Hysetco, Tree Energy Solutions, Cloover, Char.gy, and Kaluza. These investments span a range of segments within the energy sector, from electric mobility to green buildings and energy storage. Notably, generative AI also received significant funding, highlighting the diverse range of technologies being supported by venture capital in Europe.
Overall, the data reveals a positive trajectory for venture capital investments in the energy sector, indicating a growing recognition of the importance of funding the energy transition. With deep, patient capital being seen as essential for decarbonization efforts, the focus on energy innovation through VC investments is likely to continue in the coming years.
