Venture capital launches a firm bet on clean energy startups and has multiplied its investments by six in just three years. Thus, it has gone from 1,900 million dollars -some 1,757 million euros- before the coronavirus pandemic, to 12,300 million dollars -some 11,371 million euros- in 2022, according to the ‘Clean Energy Startups Radar’ study by the strategic consultant Oliver Wyman and that Europa Press collects.
This historic increase occurred despite a context marked by a sharp contraction in the venture capital market due to the increase in interest rates and the subsequent restriction of liquidity, which led to the general investment of capital in 2022 . Risk across all industries fell 53%, while investment in clean energy startups rose 10% in the same period.
Specifically, the study showed that the main catalysts for this increase in venture capital investment in green energy have been the Inflation Reduction Act (IRA) in the United States and the Net Zero Industry Act. . of the European Union. Oliver Wyman’s Experts Estimated That Venture Capital Financing of Emerging Energy Companies is Reaching Record Highs, “Despite the Effects of a Series of Economic Pressures, Such as Covid-19, Growing Geopolitical Tensions, The Shortage of Liquidity of venture capital and rising interest rates.
Batteries, one of the most attractive technologies to invest
Within these clean energies, battery technology is consolidated as one of the most attractive for venture capital, after in 2022 venture capital came to invest 5,000 million dollars (about 4,623 million euros) in companies that develops. As for investment in other renewable energy technologies, it tripled from 1,000 million dollars (about 925 million euros) in 2021 to 3,000 million dollars (about 2,774 million euros) last year.
On the other hand, venture capital investment in startups dedicated to the production of fuel, products and services powered by hydrogen or energy generated by hydrogen, increased to 550 million dollars (about 509 million euros) in 2022, compared to The 70 Million Dollars (ABOUT 65 Million EUROS) Of 2019. By Regions, North American Venture Capital Was The Main Driver of clean investment in 2022, Contributing, Contributing 7,000 Million Dollars (ABOUT 6,472 Million EUROS), Around The 57% of the annual total, compared to 5,500 million dollars (about 5,084 million euros) the previous year.
The US and Europe were the predominant regions in investments in clean energy startups during the past financial year
Europe was the other predominant region in investments in clean energy startups, with a total of 3,500 million dollars (about 3,236 million euros) in 2022. North America and Europe thus added 85% of the total financing to new clean energy companies. mpia in 2022. In other continents such as Asia, venture capital investment in startups in the sector increased from 300 million dollars (about 278 million euros) to 700 million dollars (about 648 million euros) between 2019 and 2021 and, In 2022, it increased again by more than 71%, to 1,200 million dollars (about 1,110 million euros), due to the expansion of renewable energies.
