Climate tech startups, supported by venture capital firms, are crucial for driving innovation, research, and climate solutions by providing funding and bridging support until they can achieve sustainable business operations. Some climate tech startups can face significant upfront costs and longer time horizons for profitability, making them less attractive to traditional investors. However, Venture capital firms that are risk-tolerant and focused on long-term potential may be willing to bet on these ventures. The following 10 venture capital firms are among the most prominent supporters for climate tech in 2024, as shown through their funding recently.
Read also: Top 5 Climate Tech VCs & Investors in 2024
1. Breakthrough Energy Ventures
Website: Breakthrough Energy
Headquarters: Kirkland, Washington
Founded: 2016
Latest Fund: Breakthrough Energy Ventures raised $555 million for the first ‘select’ fund in January 2024.
Portfolio Companies: Examples include Aeroseal, Airloom Energy, Albedo, Clearflame, Graphyte, Pachama, Heirloom & Verdox.
Focus Areas
Breakthrough Energy Ventures is a multifaceted organisation with a mission to accelerate the energy transition. The following is an overview of their focus areas:
- Breakthrough Energy Ventures
This is a series of investment funds aimed at supporting companies with innovative technologies capable of significantly reducing emissions across various sectors such as agriculture, buildings, electricity, manufacturing, and transportation. They provide financial backing to help these companies scale their solutions and bring them to market.
- Breakthrough Energy Catalyst
This platform focuses on funding and investing in project companies that utilise emerging climate technologies to reduce emissions. By supporting these projects, the Catalyst aims to accelerate the adoption of such technologies on a global scale, facilitating their widespread implementation.
- Breakthrough Energy Fellows
This global program supports inventors and researchers who are developing new technologies with the potential to substantially reduce carbon emissions. By offering support and resources to these promising individuals, Breakthrough Energy aims to foster innovation and drive forward the development of impactful solutions.
- Policy & Advocacy
Breakthrough Energy is actively involved in advocating for smart public policies that encourage innovation and address decarbonization challenges effectively. Through the work of analysts, experts, and advocates, they seek to shape policy frameworks that support the adoption and scaling of clean energy technologies.
- Breakthrough Energy Europe
This initiative involves a dedicated team of experts collaborating with partners across Europe to support research into clean technologies, amplify the voices of clean entrepreneurs, and expand markets for clean solutions. By fostering innovation and market growth in Europe, Breakthrough Energy aims to accelerate the continent’s transition to a sustainable energy future.
Market Position
Breakthrough Energy Ventures is one of the leading climate tech venture capital firms; specifically with focus on solutions that can significantly reduce emissions across key sectors such as agriculture, buildings, electricity, manufacturing and transportation. Their targeted approach, along with the broad network of partnerships and programs, enables Breakthrough Energy Ventures to not only provide financial backing but also strategic guidance and resources to help these companies scale their solutions and navigate the complexities of the global marketplace.
2. Octopus Energy Group
Website: Octopus Ventures | Venture Capital
Headquarters: London, United Kingdom
Founded: 2008
Latest Fund: Octopus Ventures raised $800 million at $7.8 billion valuation following COP28 in December 2023.
Portfolio Companies: Examples include SOVA, depop, vira, Orbex, Big Health, inflow, Zoopla & Permutive.
Focus Areas
Octopus Ventures has the following focus areas:
- Venture Capital Investment
Octopus Ventures provides financial backing to founders and startups across seven key sectors: B2B software, Bio, Climate, Consumer, Deep Tech, Fintech and Health.
- Sector Expertise
Octopus Ventures leverages on deep knowledge and experience in the seven sectors to identify and support high-potential ventures that are addressing critical societal challenges and emerging opportunities.
- Long-term Partnerships
Octopus Ventures is focused on building long term partnerships with founders and startups, providing on-going support and guidance across different stages of growth.
Market Position
Octopus Ventures distinguishes itself by providing not only financial backing but also deep sector expertise, early-stage funding and long-term partnerships with founders. With a recent fundraise of $800 million at a valuation of $7.8 billion following COP28 in December 2023, Octopus Ventures has solidified its market position as an industry leader.
3. Lowercarbon Capital
Website: Lowercarbon Capital
Headquarters:
Founded:
Latest Fund: Lowercarbon Capital raised $550 million for two major climate tech funds in September 2023.
Portfolio Companies: Examples include Lilac, Solugen, Linear Labs, Antora, Tomorrow Farms & MicroByte.
Focus Areas
Lowercarbon Capital focuses on supporting climate tech companies and emerging technologies that are focused on decarbonization. Their approach revolves around three main objectives:
- “Slashing New CO2”
Lowercarbon Capital is investing in technologies across various sectors such as energy, transportation, industrial materials, and agriculture to reduce carbon dioxide, methane, and other greenhouse gas emissions. By targeting the sources of these emissions, they aim to halt the continual rise in global temperatures.
- “Sucking Up Carbon”
Lowercarbon Capital is supporting startups focused on removing carbon dioxide from the atmosphere. This involves developing methods to capture and store carbon, with the goal of removing at least a trillion tons of CO2 by 2100.
- “Buying More Time”
In addition to addressing emissions and carbon removal, Lowercarbon Capital is exploring strategies to cool the planet and mitigate the impacts of climate change. This includes researching technologies and approaches that can potentially buy more time for communities and ecosystems facing the immediate consequences of rising temperatures, such as extreme weather events, wildfires, droughts, and sea-level rise.
Market Position
Lowercarbon Capital is one of the leading actors in the climate tech VC space, especially with its recent $550 million fund. Lowercarbon Capital distinguishes itself in the industry with its holistic approach of addressing decarbonization goals with carbon-slashing and carbon removal both. Their dedication to leveraging hard science alongside ambitious goals distinguishes them as a leader in the field.
4. World Fund
Website: World Fund | Leading European Climate Tech VC Fund
Headquarters: Berlin, Germany
Founded: 2021
Latest Fund: World Fund closed its first fund at over $300 million to back climate tech in April 2024.
Portfolio Companies: Examples include Juicy Marbles, Ecoworks, Mission Zero Technology, Customcells, Planet A Foods, Freshflow & Sunroof.
Focus Areas
World Fund specializes in decarbonizing the global economy through climate tech venture capital.
- Focused Investment Model
World Fund focuses exclusively on technologies with scalable business models and significant emissions reduction potential.
- Broad Sector Focus
World Fund supports startups across various sectors including Energy, Food and Agriculture, Manufacturing, Buildings and Utility.
- Strategic Support
World Fund provides startups with ongoing support across all stages of growth.
Market Position
World Fund’s strong market position is signified by their recent achievement: closing their inaugural fund at over $300 million in April 2024, signalling strong investor confidence in their mission. World Fund particularly has a strong position within the decarbonization space because of their strong focus on decarbonization. This is reflected in their selective investments solely in technologies with scalable business models and significant emissions reduction potential across sectors like Energy, Food and Agriculture, Manufacturing, Buildings, and Mobility.
5. Energy Impact Partners
Website: Energy Impact Partners
Headquarters: New York
Founded: 2015
Latest Fund: Energy Impact Partners closed Elevate Future fund with $111.9 million to support diversity in clean energy in May 2023.
Portfolio Companies: Examples include Corelight, Cyclic Materials, Dragonfly Energy, Esgbook, Greenly, Hometree, Instagrid, Zolar & Zitara.
Focus Areas
Energy Impact Partners is a global investment firm dedicated particularly to supporting the energy transition.
- Asset Management
Energy Impact Partners manages over $4 billion in assets. The firm invests globally across venture, growth and credit.
- Focus on collaboration
Energy Impact Partners places importance on facilitating partnerships and collaborations between entrepreneurs and forward-looking energy and industrial companies.
- Broad Range of Specialities
Energy Impact Partners covers a broad range of focus areas including venture capital, energy technology, strategic investing, cyber security, industry 4.0, smart cities, smart building, corporate venture capital, mobility, electrification, utility of the future and energy convergence.
Market Position
Energy Impact Investors is one of the leading climate tech venture capital firms globally, especially with its diverse portfolio. The VC firm’s portfolio spans venture, growth, and credit investments. Energy Impact Investors leverages its over $4 billion in assets under management and a team of over 90 professionals across multiple international offices.
6. Satgana
Website: Satgana – Investing in planet-positive startups
Headquarters: Luxembourg
Founded: 2020
Latest Fund: Satgana closed its first fund at €8M for early stage climate tech startups in April 2024.
Portfolio Companies: Examples include Orbio Earth, Kubik, Fullsoon, Onima, Loewi, Arda, Novek & Amini.
Focus Areas
Satgana focuses on investing in technology solutions aimed at addressing the climate and ecological crisis. They target startups across various sectors related to the environment, including transportation, energy, food and agriculture, industry and buildings, carbon removal, and circular economy.
- Investment Support
Satgana invests between €30k and €300k in category-defining Climate Tech startups in Europe and Africa.
- Hands-on Support
After completing the investment, Satgana also provides hands-on support to the startups they invest in. This support includes strategic guidance, mentorship, and assistance in navigating challenges faced by startups.
- Partner-driven Perks
Satgana also provides access to other perks through partnerships with organisations. This includes access to resources, services, or opportunities that can benefit the startups in their portfolio.
- Network Access
Satgana supports the startups in their portfolio by connecting them to their network of experts, potential collaborators, investors and other stakeholders in climate tech.
Market Position
What truly distinguishes Satgana is its comprehensive approach to supporting its portfolio companies. Beyond financial investment, Satgana provides hands-on support, partner-driven perks, and access to extensive networks, empowering founders with the resources and connections needed to drive impactful change. With its latest fund closing at €8M in April 2024, Satgana has emerged as one of the most prominent climate tech VC firms.
7. SOSV
Website: SOSV – Deep Tech for Human and Planetary Health
Headquarters: Princeton, New Jersey
Founded: 1995
Latest Fund: SOSV closed a climate tech startup fund of $306 million in April 2024.
Portfolio Companies: Examples include NotCo, R-Zero, OpenTrons, Upside Foods, Novoloop, Geltor, Prellis Biologics & Neptune Robotics.
Focus Areas
SOSV is known particularly for its early-stage startup development programs, specialising in deep technology aimed at addressing climate change.
- Early-stage Startup Focus
SOSV focuses on early stage startup development programs. Their programs encompass HAX, emphasising hard tech, and IndieBio, focusing on life sciences. These initiatives provide comprehensive support, including technical and scientific expertise, state-of-the-art lab and fabrication facilities, and access to supply chains.
- On-going Support
SOSV offers on-going support to the startups in its portfolio. Support includes deep technical and scientific expertise, well-equipped labs, fabrication facilities, and supply chain access.
- Strategic Investment Approach
SOSV’s has a unique strategy to Invest in a small number of highly promising startups, and leveraging their programs to accelerate product development, acquire customers, and facilitate scaling.
Market Position
SOSV’s extensive portfolio of over 1,000 companies and $1.5 billion in assets under management (as of January 2024) reflects their significant market presence. SOSV further distinguishes itself through annual reports like the Human Health 100 and the Climate Tech 100, showcasing their top investments in critical sectors. Their latest achievement , closing a climate tech startup fund of $306 million in April 2024, demonstrates SOSV’s ongoing dedication to driving innovation and addressing climate change.
8. Khosla Ventures
Website: Khosla Ventures
Headquarters: Menlo Park, California
Founded: 2004
Latest Fund: Khosla Ventures closed $3 billion for venture funds in November 2023.
Portfolio Companies: Examples include Blue River, Caelux, Ceibo & Commonwealth Fusion Systems.
Focus Areas
Khosla Ventures aims to leverage technology to solve large-scale problems including climate change. Here’s an overview of their key offerings and services:
- Consumer Focus
Khosla Ventures invests in companies aiming to disrupt traditional consumer markets and create new ones through technology. They focus on early-stage ventures that are bold in their approach and seek to change consumer habits in areas such as social, media, and retail.
- Fintech
Khosla Ventures identifies and supports early-stage fintech innovations that develop unconventional financial services. From payments and insurance to property technology (proptech) and cryptocurrency, they invest in bold ideas that reshape the fintech landscape.
- Enterprise
Recognizing the transformative power of AI and remote work, Khosla Ventures invests in software and tools that drive productivity and efficiency in enterprise settings. They support innovations that cater to the evolving needs of companies adapting to technological changes.
Market Position
With its latest fund closing at an impressive $3 billion in November 2023, Khosla Ventures continues to maintain a strong presence in the venture capital landscape. Khosla Ventures differentiates itself with a strong focus on supporting unconventional and bold ideas in consumer markets, enterprise and fintech. Khosla Ventures’ focus on backing visionary founders and disruptive innovations, combined with its deep expertise and network, cements its reputation as a market leader.
9. Material Impact
Website: Material Impact
Headquarters: Boston, Massachusetts
Founded: 2015
Latest Fund: Material Impact raised a $352 million fund to target tech startups in November 2023.
Portfolio Companies: Actnano, AgZen, Bloomer Tech, Fleet Robotics, Foundation Alloy, talus, Tierra Biosciences & Soft Robotics.
Focus Areas
Material Impact is a venture capital firm that manages over $700 million in assets across its Material Impact Funds I, II, and III.
Key focus areas:
- Early-stage Investment
Material Impact provides financial backing to startups in their nascent stages, offering crucial funding to support their growth and development.
- Strategic Guidance
In addition to financial investment, Material Impact offers strategic guidance and mentorship to the companies they invest in. This includes sharing industry insights, networking opportunities, and advising on business strategies.
- Value Alignment
The firm is guided by a set of core values including loyalty, bravery, originality, empathy, inclusivity, and responsibility. They seek to align with companies that share these values, fostering a culture of collaboration and mutual respect.
Market Position
With a recent fundraise of $352 million in November 2023, Material Impact are well-positioned to support technical startups. Material Impact differentiates itself by focusing on companies that not only demonstrate promising financial potential but also prioritise addressing urgent human needs. By providing not only financial backing but also strategic guidance and mentorship, Material Impact nurtures early-stage companies to success, fostering a culture of collaboration and responsibility.
10. Future Energy Ventures
Website: Future Energy Ventures – Building the future of energy, together.
Headquarters: Berlin, Germany
Founded: 2016
Latest Fund: Future Energy Ventures launched a €110 million fund aimed at decarbonising the energy system in January 2024.
Portfolio Companies: Akselos, Bidgely, Buildots, Cryptowerk, Dabbel, EV Energy, Intertrust, Sterblue & Sunvigo.
Focus Areas
Future Energy Ventures envisions a landscape where various sectors merge to form an interconnected energy infrastructure. Key components of their offerings and services include:
- Investment in Innovation
Future Energy Ventures invests in forward-thinking companies that are leading digital and digitally enabled technologies.
- Holistic Energy Solutions
Recognizing that energy is not siloed but intersects with various sectors, Future Energy Ventures supports companies that offer holistic solutions. This includes innovations like electric vehicles serving as mobile batteries, buildings generating energy, and smart homes and businesses optimising energy consumption.
- Integration of Frontier Technologies
Future Energy Ventures acknowledges the role of frontier technologies such as Artificial Intelligence (AI) and blockchain in revolutionising energy systems. They invest in companies leveraging these technologies to connect energy producers and consumers, facilitating efficient energy distribution and management.
Market Position
Future Energy Ventures differentiates itself in the market with their strategic focus on investing in companies that leverage frontier technologies like Artificial Intelligence (AI) and blockchain to innovate energy distribution and management. With the launch of their latest €110 million fund in January 2024, dedicated to decarbonizing the energy system, Future Energy Ventures is well-positioned to further accelerate innovation and disrupt traditional energy supply chains.
Methodology and Limitations
The venture capital firms mentioned were chosen on the basis of closing significant climate tech funds in the recent past (2023-2024), as well as focus on climate tech in their value propositions. There are many other venture capital firms focused on climate tech investments, and these 10 venture capital firms fall amongst the best.
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