Surveying a clutch of climate fintechs across Europe and North America with scalable business models, the report makes six key findings:
- At $1.2 billion in 2021, VC funding for climate fintech was three times higher than in all previous years.As a comparison, prior to 2021, all 292 firms identified in Europe and North America raised $400 million.
- Europe is ahead of the US in terms of total funding volumes – standing at $624 million versus $576 million. The US, however, enjoys a higher average funding per company.
- 68% of climate fintechs are at the seed and pre-seed stage.
23% have raised a Series A, and 9% a Series B, or later.
- Carbon offsetting and carbon accounting are the most densely populated sub-categories.
CommerzVentures identifies 101 startups in carbon offsetting; 68 in carbon accounting; 29 in impact investing; 27 in ESG reporting; 21 in climate risk management; 17 in each of the sustainable banking and supply chain analytics groups; 7 in impact financing; and 5 in carbon credits trading.
- B2B climate fintechs raised almost six times more funding in 2021 than B2Cs ($1bn vs $179m).
The funding for B2Bs continues to outpace that of B2Cs – at 3.4x versus 2x.
- Decentralised finance is the biggest theme to watch out for in the climate fintech sector.
Infrastructures for the tokenisation of carbon are already being constructed.
,According to CommerzVentures’ second report on climate fintech, venture capital (VC) funding for fintechs driving net-zero economies hit a record high in 2021.,
