CommerzVentures has revealed its 2025 Local weather Fintech Report, highlighting a robust yr for funding in Local weather Fintech regardless of wider financial challenges.
In 2024, the sector secured a complete of US$2.7 billion in funding, representing a 17% improve from the earlier yr.
This development considerably outpaced the general enterprise capital market, which expanded by solely 3% throughout the identical interval.
European Local weather Fintech startups attracted probably the most funding, securing 2.5 instances extra enterprise capital funding than their North American counterparts.
European corporations collectively raised US$1.95 billion throughout 111 financing rounds, whereas North American startups secured US$765 million throughout 27 rounds.
The report additionally highlights a geographical shift in European Local weather Fintech funding, with Germany surpassing the UK for the primary time because the main vacation spot for capital, elevating US$832 million in funding.
Regardless of financial headwinds, early-stage Local weather Fintech corporations continued to draw robust investor curiosity.
Greater than 50% of all financing rounds in 2024 had been on the Pre-Seed and Seed phases, indicating sustained confidence within the sector’s long-term potential.
Funding exercise was significantly concentrated in three key areas: Vitality x Fintech, which raised the best quantity of funding at US$870 million, adopted by Carbon Markets (US$460 million) and Local weather Danger (US$404 million).
The report additionally highlights rising traits within the sector, together with growing regulatory and company demand for carbon accounting, ESG compliance, and threat administration options.
As corporations and monetary establishments search to align their operations with local weather targets, Local weather Fintech companies are enjoying an more and more crucial function in facilitating sustainable monetary companies and funding methods.
The sector’s resilience in 2024 means that Local weather Fintech will stay a key space of development inside enterprise capital, significantly as regulatory frameworks evolve and investor consciousness of climate-related monetary dangers continues to rise.
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