Eight European Climate Tech Ventures You Should Follow

Recent investment trends have underscored a robust growth trajectory in fintech and climate tech, with a notable shift in funding strategies among founders. A significant development is the increased reliance on high-interest debt instead of equity sharing, reflecting a strategic move by many entrepreneurs to secure capital without diluting ownership.

Climate tech has emerged as a standout sector, capturing €21.3 billion in investment. This surge in funding highlights the sector's growing importance, with energy storage, advanced materials, and electric vehicles (EVs) receiving the most attention. A substantial portion of this funding was driven by major deals with Northvolt and H2 Green Steel. Northvolt, a leading Swedish battery provider, secured a historic €5 billion green loan early in the year, positioning itself at the forefront of battery technology. Despite facing some operational challenges, including the closure of its California unit and contract cancellations, Northvolt remains a pivotal player in the industry.

H2 Green Steel, a relatively new entrant founded in 2020, is focused on revolutionizing steel production by drastically reducing CO2 emissions. The company is constructing a green hydrogen steel mill powered by renewable energy sources such as wind and hydropower. This ambitious project aims to significantly lower the carbon footprint of steel manufacturing.

Zenobē Energy, a UK-based battery provider, secured £410 million in equity funding in the first half of 2024. This funding round was notable for its reliance on private equity and infrastructure funders, highlighting a shift in financing preferences within the climate tech sector. This model is gaining traction as it offers a stable funding base for innovative climate projects that are still scaling.

French startup Electra raised €304 million in Series B funding to expand its network of fast-charging stations for electric vehicles. This investment reflects the growing demand for EV infrastructure as more consumers transition from traditional petrol and diesel vehicles to electric alternatives. In Germany, Everphone secured €270 million in financing led by Citigroup. The Berlin-based company operates a Device-As-A-Service platform and aims to expand internationally while introducing new features tailored to enterprises, such as business intelligence and ESG reporting.

Syre, a Swedish textile recycling startup, raised $100 million in Series A funding to advance its mission of recycling polyester, a material with a high CO2 footprint. The company, which began as a joint venture with H&M, is focused on creating more sustainable practices within the textile industry. Cloover, a German company specializing in green energy solutions, received $114 million in funding to support the growing demand for residential renewable energy solutions. The company provides tools for household installers, reflecting the increased consumer interest in green energy driven by rising energy prices and greater environmental awareness.

Lastly, UK-based Kaluza raised €92 million in funding by partnering with Australian energy retailer AGL. This collaboration aims to deliver affordable, low-carbon energy solutions to the Australian market, demonstrating Kaluza’s commitment to expanding its impact on global energy sustainability. Overall, the climate tech sector is experiencing significant investment and growth, driven by innovative funding strategies and strategic partnerships. This trend underscores a broader commitment to advancing sustainability and technological innovation across various industries.