Climate tech encompasses a broad range of innovations aimed at reducing greenhouse gas emissions, improving energy efficiency, and fostering sustainable practices across various sectors. From carbon capture and renewable energy to sustainable agriculture and waste management, climate tech startups are driving transformative changes globally.
In 2023, the combined enterprise value of global climate tech startups surged to $2.5 trillion, marking a 45-fold increase over the past decade. Leading the way in climate tech funding was the United States, followed by China, the United Kingdom, and Sweden. [1]
Since 2018, the US has invested over $131 billion in climate tech startups, approximately 2.4 times more than China. In 2023 alone, these startups secured funding through over 2,800 rounds involving more than 4,100 investors.
Below we have highlighted some of the fastest-growing climate tech startups that have the potential to drive significant environmental and societal impact. Our aim is to inspire awareness and action towards supporting and investing in this transformative industry.
Did you know?About 60% of climate tech firms have less than 12 months of cash runway, a figure higher than the 53% seen across all tech companies. This is because climate tech ventures are more capital-intensive in nature compared to their counterparts in the broader tech industry.
Table of Contents
14. Swytch
Location: London, United Kingdom
Total Funding: $6.4 million
Growth Status: Rapid expansion
Swytch provides affordable and easy-to-install kits to convert regular bikes into e-bikes. These kits include a motor wheel, a battery pack, and a handlebar-mounted controller. They are compatible with most pedal bicycles and offer up to 96 kilometers of electric assistance at speeds up to 24 km/h. Prices start at $325 per kit. [2]
By converting traditional bikes into electric bikes, Swytch not only promotes eco-friendly transportation but also helps decrease greenhouse gas emissions. This initiative encourages more people to use bicycles instead of cars for their daily commute.
To date, the company has raised $6.4 million through five funding rounds from 6 investors, including SFC Capital, Calyx Venture Fund, and Next Wave Partners.
13. Pachama
Location: California, United States
Total Funding: $88.3 million
Growth Status: Rapid expansion
Pachama combines AI, satellite imagery, and remote sensing technology to verify and monitor carbon offsets generated by reforestation and forest conservation projects.
They have developed an online marketplace that makes it easy for individuals and businesses to find and purchase verified carbon offsets from high-quality reforestation and conservation projects. Users get detailed reports on the impact of their offsets, including data on carbon sequestration and forest health.
In 2024, Shopify purchased carbon credits from Pachama to support a reforestation initiative in Brazil’s Atlantic Forest. Shopify partnered with Pachama through its Sustainability Fund to reforest nearly 490 acres of land, aiming to remove 45,000 tons of carbon over the next 17 years. [3]
Pachama has raised a total of $88.3 million from 55 investors. In 2023, they closed a Series B round, raising $64 million from prominent investors, including Positive Ventures, T Capital, and Lowercarbon Capital. [4]
12. Greyparrot
Location: London, United Kingdom
Total Funding: $30.83 million
Growth Status: Explosive
Greyparrot develops AI-powered vision systems that can be integrated into waste sorting facilities. These systems used machine learning models to identify and classic different types of waste materials in real-time.
They provide comprehensive reports on waste composition, allowing facilities to monitor and optimize their operations. Their AI can identify characteristics like brand, mass, emission potential, and more across 89+ categories of material with 95% accuracy.
Greyparrot deployed its first commercial Analyzer Unit in the UK in 2021. Today, they have numerous Analyzer Units active in over 50 facilities across 20 countries, collectively analyzing over 25 billion waste objects every year. [5]
The company has raised nearly $30.8 million through seven funding rounds. In 2024 alone, it raised $12.8 million from Bollegraaf Recycling Solutions. [6]
11. Kula Bio
Location: Massachusetts, United States
Total Funding: $72.1 million
Growth Status: Steady
Kula Bio develops advanced nitrogen-fixing technology. Their mission is to replace synthetic fertilizers with green alternatives that promote soil health and decrease greenhouse gas emissions.
Their core technology involves using naturally occurring, nitrogen-fixing microbes. When applied to crops, these microbes transform atmospheric nitrogen into something that plants can easily absorb. They act as biostimulants, enhancing plant growth and resilience by improving nutrient uptake and soil health.
The company is backed by 17 investors, including Neglected Climate Opportunities, iSelect Fund, HT Capital, and Ying Fund. [7]
10. NuScale Power
Founded in 2007NuScale’s SMR technology provides 24/7, carbon-free, baseload generation – a reliable, always-on energy source for powering data centers, producing clean hydrogen, and replacing retiring coal plants. #SMRadvantage pic.twitter.com/OtUScx4dGM
— NuScale Power (@NuScale_Power) May 31, 2024
Location: Oregon, United States
Total Funding: $469.6 million
Growth Status: Accelerated
NuScale Power develops cost-effective nuclear power solutions through its innovative Small Modular Reactor (SMR) technology. This technology consists of modular reactors that can be manufactured in a factory and transported to a site, where they are assembled into scalable power plants.
Each module generates 77 megawatts, and a full 12-module plant can generate up to 924 megawatts of electricity, which is enough to power approximately 700,000 homes. This modular construction and simplified design can significantly reduce capital costs and construction time compared to traditional nuclear power plants. [8]
NuScale Power is backed by 14 big investors, including Fluor Corporation, Spring Valley Acquisition, Segra Capital, the US Department of Energy, and JGC Holdings Corporation. It went public in 2022 and is currently listed on the New York Stock Exchange under the symbol SMR.
For the quarter ending March 31, 2024, the company had cash and equivalents of $137.1 million and zero debt. It reported revenue of $1.4 million and a net loss of $48.1 million. [9]
9. ZeroAvia
Founded in 2017ZeroAvia launches electric and hydrogen aviation components offering as manufacturing plans revealed! @valerun – “today’s announcement underlines ZeroAvia’s growth from ambitious startup into a clean aerospace manufacturing powerhouse.” Read more here: https://t.co/NinnABazGC
— ZeroAvia (@ZeroAvia) April 24, 2024
Location: California, United States
Total Funding: $260 million
Growth Status: Rapid Expansion
ZeroAvia develops hydrogen-electric powertrains for aircraft. These powertrains use hydrogen fuel cells to generate electricity, which then power electric motors. Their goal is to make hydrogen-powered flight a reality, reducing airplanes’ carbon footprint and paving the way for sustainable air travel.
In 2023, the company completed its first test flight in a Dornier 228 aircraft equipped with its hydrogen-electric propulsion system. To accelerate the deployment of hydrogen-powered aviation, it has established partnerships with leading industry players like Airbus and British Airways. [10]
So far, ZeroAvia has raised $260 million through fifteen funding rounds, the latest one (a Grand round) being raised in January 2024. Plus, it has acquired HyPoint, a Menlo Park-based startup specializing in hydrogen fuel cell systems for the air transportation market.
8. Sylvera
Founded in 2020Introducing Catalog and Screenings
20,000 carbon credit projects – in one centralized platform.
Navigating the carbon market can be difficult: it’s opaque, disjointed, and ever-changing. Sylvera is making the end-to-end carbon journey easier. pic.twitter.com/dh7LU91v6y
— Sylvera (@SylveraCarbon) May 1, 2024
Location: London, United Kingdom
Total Funding: $95.3 million
Growth Status: Explosive
Sylvera aims to provide transparency and efficiency in the carbon offset market by leveraging AI and satellite imagery for carbon offset verification. It has developed a robust rating system that evaluates the quality and performance of carbon offset projects.
In fact, Sylvera is the first carbon credit rating agency to apply the International Capital Market Association (ICMA) Code of Conduct. This helps businesses and governments identify high-quality offsets and avoid investments in projects with low environmental impact. [11]
The company has raised $95.3 million through five funding rounds. In 2023, they closed a Series B round, securing $57 million to scale their teams and expand product offerings into the US.
7. NexWafe
Location: Baden-Wurttemberg, Germany
Total Funding: $103.5 million
Growth Status: Accelerated
NexWafe aims to accelerate the adoption of solar energy through its innovative production of high-efficiency, low-cost silicon wafers. Their proprietary technology, EpiWafers, significantly decreases the cost and environmental impact of solar photovoltaic manufacturing while enhancing the performance of solar cells.
Specifically, EpiWafers can reduce the production cost of silicon wafers by up to 50% and eliminate the need for slicing silicon ingots, resulting in almost 100% material yield (compared to the 50% yield of traditional wafer production).
NexWafe has raised nearly $103.5 through ten funding rounds, with the latest one (Series D) occurring in 2023. The company has started expanding to the United States and is currently planning to build an initial development capacity of 6GW of solar wafers.
6. Redwood Materials
Founded in 2017“Redwood Materials’ recycling process produces up to 80% fewer emissions than traditional supply chain using CO2 belching refineries. That’s enough to shorten an average EV’s environmental breakeven time with an internal combustion vehicle to less than 15,000 miles. Every mile… pic.twitter.com/vfY3aeYZtY
— Redwood Materials (@RedwoodMat) April 24, 2024
Location: Nevada, United Kingdom
Total Funding: $3.8 billion
Growth Status: Explosive
Founded by Tesla co-founder JB Straubel, Redwood Materials recovers and recycles materials from lithium-ion batteries and other electronic waste. It primarily focuses on recovering metals like lithium, cobalt, nickel, and copper from end-of-life batteries.
The company utilizes state-of-the-art recycling technologies, such as hydrometallurgical processes, mechanical separation techniques, and pyrometallurgical methods, to recover critical materials from dead batteries and electronic devices.
It collaborates with leading corporations across the battery and electronics supply chain to integrate recycled materials into their manufacturing processes. For example, in 2024, they partnered with Ultium Cells, a joint battery manufacturing venture between GM and LG Energy Solution, to recycle battery production scrap. [12]
In 2023, Redwood Materials recycled about 10 GWh worth of lithium-ion batteries, equivalent to about 44,000 tons of materials, enough to manufacture batteries for nearly 100,000 cars. [13]
The company has raised a staggering $3.8 billion in just eight funding rounds, with the latest being a Series D round in 2023. In the same year, it acquired REDUX Recycling, a German-based startup specializing in sustainable recycling of lithium-ion batteries.
5. Charm Industrial
Location: California, United States
Total Funding: $100 million
Growth Status: Accelerated
Charm Industrial utilizes pyrolysis, a thermochemical process, to convert organic waste materials into biochar, a stable form of carbon that can be stored in soil for centuries.
This process involves heating biomass, such as agricultural residues and forestry waste, in the absence of oxygen, leading to the decomposition of organic matter and the production of biochar, bio-oil, and syngas.
Charm Industrial engages with farmers, environmental groups, policymakers, and landowners to promote the adoption of carbon-negative solutions. Plus, their biochar products are eligible for carbon offset credits. Companies like Microsoft, Stripe, and Shopify pay Charm $600 for every ton of carbon it puts underground. [14]
As of June 2024, they have removed a total of 7,183 tonnes of carbon dioxide.
4. CarbonCure Technologies
Founded in 2012Thanks @CarbonHerald for covering #CarbonCure‘s 50M cubic yards of lower carbon concrete & 400,000 metric tons of CO2 saved – “equivalent to the annual carbon sequestration of 477,000 acres of forest, enough to cover half the state of Rhode Island.”
Link: https://t.co/c1K4GVzL8U pic.twitter.com/id3YIlaJMn
— CarbonCure Technologies (@CarbonCure) March 15, 2024
Location: Nova Scotia, Canada
Total Funding: $92.4 million
Growth Status: Rapid Expansion
CarbonCure Technologies reduces the carbon footprint of concrete production by incorporating captured carbon dioxide into the concrete manufacturing process. The company injects recycled carbon dioxide into fresh concrete during mixing, enhancing the material properties of concrete while permanently sequestering CO₂.
It holds over 120 patents related to carbon mineralization and CO₂ storage in concrete.
So far, CarbonCure has helped its partners sequester over 443,000 metric tons of CO₂, equivalent to taking 92,000+ cars off the road for a year. Over 6,792,600 truckloads of concrete have been delivered with CarbonCure’s technology, showcasing the widespread adoption and impact of their innovative solution. [15]
3. Fervo Energy
Founded in 2017We’re developing a novel, integrated fit-for-purpose geothermal + direct air capture facility, with support from the @ChanZuckerberg Initiative Thanks to the @WashingtonPost for highlighting our efforts: https://t.co/23zspVs4V9
— Fervo Energy (@fervoenergy) February 23, 2023
Location: Texas, United States
Total Funding: $431 million
Growth Status: Explosive
Fervo Energy employs horizontal drilling and advanced reservoir management techniques, generally used in the oil and gas industry, to improve the efficiency of geothermal wells. These techniques enable the creation of larger, more productive geothermal reservoirs.
Here is how it works: First, the company digs 7,000-9,000 feet below the surface. From there, it tunnels sideways 2,500-4,000 feet horizontally, creating a loop in which added water turns into steam. This steam is used to spin a turbine, generating electricity. [16]
Fervo Energy also uses fiber-optic cables in geothermal wells to collect and analyze subsurface conditions in real-time, enabling precise control and optimization of geothermal reservoirs.
The company opened its first power plant in 2023 in northern Nevada in partnership with Google. Now, it plans to build a 400-megawatt project in Utah, which will be enough to power 300,000 homes.
In February 2024, Fervo Energy closed its Series D round, raising $244 million from lead investor Devon Energy, a pioneer in shale oil and gas. This brings their total funds raised to $431 million. [17]
2. Commonwealth Fusion
Location: Massachusetts, United States
Total Funding: $2 billion
Growth Status: Rapid expansion
Founded in 2018 as a spin-off from the Massachusetts Institute of Technology (MIT), Commonwealth Fusion aims to develop fusion energy as a practical and sustainable power source.
The company has collaborated with MIT’s Plasma Science and Fusion Center to build SPARC, the world’s first fusion machine designed to generate plasmas that produce more energy than they consume. It will pave the way to safe, green, unlimited fusion power. [18]
SPARC utilizes high-temperature superconducting magnets to achieve the required conditions for sustaining fusion reactions. It is smaller and more efficient than conventional fusion reactors.
Commonwealth Fusion also plants to develop Affordable Robust Compact (ARC) reactor, a commerical fusion power plant to offer large-scale, clean energy to the grid.
The company has raised $2 billion from 40 investors, including Tiger Global Management, the U.S. Department of Energy, Temasek Holdings, and Bill Gates. Of this total funding, $1.8 billion was raised in 2021 in a Series B funding round led by Tiger Global Management. It is the largest private investment to date in nuclear fusion. [19]
1. Northvolt
Founded in 2016Announcing the signing of a $5 billion project financing to enable the expansion of Northvolt Ett gigafactory in northern Sweden, and its adjacent recycling plant, Revolt Ett — the largest green loan raised in Europe to date. Full press release ↓https://t.co/fKSiKYEVwX
— Northvolt (@northvolt) January 16, 2024
Location: Stockholm, Sweden
Total Funding: $13.8 billion
Growth Status: Explosive
Northvolt develops batteries with a minimal carbon footprint. It focuses on producing high-performance lithium-ion batteries for electric vehicles and energy storage systems.
The company also has a robust recycling program called Northvolt Revolt, which reclaims valuable materials from used batteries to create a closed-loop system, thereby decreasing waste and reducing dependency on raw material extraction.
Northvolt has raised about $13.8 billion through fourteen funding rounds. In 2024, the company signed a $5 billion non-recourse project financing agreement to support the expansion of its gigafactory in northern Sweden, marking the largest green loan ever raised in Europe. [20]
They aim to produce 150 GWh of lithium-ion cells annually by 2030, enough to power over 3 million electric vehicles per year. [21]
Read More
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Sources Cited and Additional References- Climate Tech, Combined value of global climate tech companies, Dealroom
- Leon Poultney, Swytch’s new GO kit is one of the cheapest ways to convert any bike into an eBike, Techradar
- Theodora Stankova, Pachama lands carbon credit purchase by Shopify in Brazil, Carbon Herald
- Patrick Mahoney, Pachama increases Series B to $64 million, Businesswire
- Our Technology, How Greyparrot’s technology works for the waste sector, packaging producers, and beyond, Greyparrot
- Natasha Lomas, UK AI startup Greyparrot bags strategic tie-up with recycling giant Bollegraaf, TechCrunch
- Company Overview, Kula Bio’s funding and financials, Crunchbase
- Products, NuScale Power Module can generate 77 MWe (gross) of electricity, NuScale Power
- Press Release, NuScale Power reports first quarter 2024 results, NuScale Power
- Hanneke Weitering, Zeroavia concludes first flight test campaign of hydrogen-powered Dornier 228, Aviation International News
- Hayden Cooke, Disclosures, standards and the keys to incentivizing investment into real climate action, Sylvera
- Rebecca Bellan, Redwood Materials is partnering with Ultium Cells to recycle GM’s EV battery scrap, TechCrunch
- Rob Pegoraro, Redwood Materials is No. 19 on the list of the World’s 50 Most Innovative Companies of 2024, FastCompany
- James Temple, Inside Charm Industrial’s big bet on corn stalks for carbon removal, MIT Technology Review
- Canadian Patents Database, CarbonCure’s patent, Government of Canada
- Homepage, CarbonCure’s carbon utilization technologies, CarbonCure
- Technology, A traditional resource poised for resurgence, Fervo Energy
- Press Release, Fervo Energy raises $244 million to accelerate deployment of next-generation geothermal, Fervo Energy
- Technology, Designing and building fusion energy systems to power the world, Commonwealth Fusion
- News, Tiger Global-backed nuclear fusion group secures $1.8bn in funding, Financial Times
- Banking, A $5 billion supercharge for battery maker Northvolt, J.P Morgan
- Homepage, Green batteries for a blue planet, Northvolt
