8 Entrepreneurial activity and investment interest in climate tech have skyrocketed, with growing market opportunities for new and existing technologies. Cost competitive renewable energy sources, maturing enabling technologies, and a change in consumer sentiment have encouraged a new crop of climate tech companies. New funds devoted specifically to climate have launched at an astonishing rate in 2021: from blue-chip venture capital firms like Union Square Ventures, from large private equity players like TPG and General Atlantic, from a whole new breed of climate-specific VCs like Lowercarbon Capital. Ofer at Shibolet adds: “Institutional investors are more ESG-cognizant. Investors, VCs, funds, and institutional investors usually are those who understand the risks as well as the huge opportunities in the climate tech markets. There is a lot of money flowing in those fields; we now see a new climate/sustainability fund being raised almost once a month.” Venture capitalists are raising larger rounds of funding in the climate tech sector. VC fundraising for climate tech-focused funds will hit a record USD 21 billion this year, according to a study by Silicon Valley Bank & SPD Silicon Valley Bank, with California, New York and Massachusetts representing the major climate tech hubs in the U.S. Barely a day goes by now without a climate tech start-up announcing a major new funding round – and Israel is no exception. Israeli climate-tech Investor interest in climate tech is climbing; new fund almost once a month Venture capitalists are raising larger rounds of funding for climate tech Israeli climate-tech companies raised USD 2.2 billion in 2021, 57% higher than 2020
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