This is according to new data gathered from over 900 ClimateTech leaders and obtained by London Tech Week, which takes place from June 12 to 16, 2023.
● 62% of Climate Tech leaders believe Net Zero is impossible without technology.
● 82% stated that they are investing in Climate Tech as a priority
● 63% of Climate Tech leaders believed not enough focus is being given to combatting climate change
● Just 26% had received funding over the last 12 months whilst 73% had not
● 32% of ClimateTech leaders had to approach five Venture Capital funds to secure funding
Earth Day 2023 at London Tech Week
Ahead of Earth Day 2023, new research suggests that, while UK climate technology is critical to combating global climate change, challenges in accessing funding and finding the right talent are impeding the industry’s growth.
With the many challenges that the world faces in 2023, the focus on ClimateTech has never been more important in London Tech Week.
This is according to new data gathered from over 900 ClimateTech leaders and obtained by London Tech Week, which takes place from June 12 to 16, 2023.
ClimateTech Summit, a dynamic global community of innovators, venture capital, corporate partners, academia, and government defining the path to net-zero, is one of the anchor event named London Tech Week.
Without technology, achieving net zero is impossible
Over half (62%) of global respondents believe Net Zero is not possible without technology, and 63% believe that combating climate change is not prioritized enough.
Putting money aside for the future
Food tech/agritech industries were revealed to be the top areas of investment for businesses in Climate Tech, with 71% investing in that area, followed by 47% investing in energy and another 47% investing in Biodiversity/Environment.
A huge 71% of ClimateTech leaders invested in 1-5 Climate Tech companies over the last 12 months, demonstrating their commitment to the sector.
However, the data shows a significant drop in funding accessibility, with 18% stating that investment had ‘decreased significantly’ compared to previous years. Only 26.47% had received funding in the previous year, while 73.53% had not. Other significant trends included:
- The majority of funding (21%) was provided by venture capital.
- This year, one of the most significant challenges was a lack of funding (47%).
- Another significant challenge (29%) was locating qualified candidates.
Community assistance is available
Over a third (44%) of respondents said they seek advice from communities, such as ClimateTech (44%). Others look to:
- Fellow founders (32%)
- Events, such as London Tech Week (24%)
- Startup programmes like Elevating Founders (14%)
- Accelerator programmes (24%)
- Mentors (24%)
Tessa Clarke, Co-Founder of OLIO, stated that, “2023 has been a watershed moment for ClimateTech, because for the first time, investment in ClimateTech has exceeded investment in FinTech.”
However, this has occurred against the backdrop of a significant drop in overall VC investment, which means that far too many ClimateTech founders are still struggling to access the capital they require.
This should worry us all, given the magnitude of the transition we must make in such a short period of time. We must also see capital invested in all aspects of the Net Zero revolution, not just the energy transition.”
Wind, solar, and geothermal energy can help us reduce our reliance on fossil fuels and lower our carbon footprint.
Accelerating capital allocation and investment by businesses in new supply chains. Creating a carbon credit system and offering financial incentives to agriculture and other industries.
Utilize technology to analyze climate data and reports collected from around the world. Drone technology is required for a comprehensive measurement of carbon in the atmosphere.
All stakeholders, from the grassroots to the highest levels of government, must be more proactive. Solar ray harvesting through boreholes is something that everyone should think about.
To read our blog on “London Tech Week, COVID-19 affected women’s tech unequally,” click here