{"id":16320,"date":"2025-04-24T06:00:22","date_gmt":"2025-04-24T06:00:22","guid":{"rendered":"http:\/\/TheNextWeb=1413254"},"modified":"2025-04-24T06:00:22","modified_gmt":"2025-04-24T06:00:22","slug":"european-climate-tech-funding-sunk-to-five-year-low-in-q1-heres-why","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=16320","title":{"rendered":"European climate tech funding sunk to five-year low in Q1 \u2014\u00a0here\u2019s why"},"content":{"rendered":"\n<p><span>Europe\u2019s climate tech startups raised $2.3bn (<\/span><span>\u20ac2bn)<\/span><span> in the first quarter of this year \u2014 the lowest total since Q3 2020, according to Dealroom data.&nbsp;<\/span><\/p>\n<p><span>Behind the headline figure lies a complex mix of growing pains, shifting <a href=\"https:\/\/thenextweb.com\/topic\/investor\" target=\"_blank\" rel=\"noopener\">investor<\/a> focuses, and broader VC market dynamics, experts told TNW. <\/span><\/p>\n<p><span>More specifically, they said the slowdown stems from a blend of market maturity, strategic repositioning, AI\u2019s outsized pull on capital, and a tough exit environment.&nbsp;<\/span><\/p>\n<p><span>\u201cIf we use the narrative of <\/span><a href=\"https:\/\/www.perplexity.ai\/page\/dunning-kruger-curve-B2EJ3bmgT6eMxHwpJ4jNLQ\" target=\"_blank\" rel=\"nofollow noopener\"><span>Dunning-Kruger Curve<\/span><\/a><span>, we are at a slope of despair in climate now, at least for investors,\u201d <\/span><span>Rokas Peciulaitis, founder and managing partner at Lithuania-based Contrarian Ventures, told TNW.&nbsp;&nbsp;<\/span><\/p>\n<div class=\"inarticle-wrapper latest channel-cta hs-embed-tnw\">\n<div id=\"hs-embed-tnw\" class=\"channel-cta-wrapper\" readability=\"8.5\">\n<div class=\"channel-cta-img\"><img decoding=\"async\" class=\"js-lazy\" src=\"https:\/\/s3.eu-west-1.amazonaws.com\/tnw.events\/hardfork-2018\/uploads\/visuals\/tnw-newsletter.png\"><\/div>\n<p><noscript><img decoding=\"async\" src=\"https:\/\/s3.eu-west-1.amazonaws.com\/tnw.events\/hardfork-2018\/uploads\/visuals\/tnw-newsletter.png\"><\/noscript><\/p>\n<div class=\"channel-cta-input\" readability=\"12\">\n<p class=\"channel-cta-title\">The ???? of EU tech<\/p>\n<p class=\"channel-cta-tagline\">The latest rumblings from the EU tech scene, a story from our wise ol&#8217; founder Boris, and some questionable AI art. It&#8217;s free, every week, in your inbox. Sign up now!<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><span>\u201cN<\/span><span>o quick wins, no massive exits, mergers and acquisitions are limited,\u201d he added. \u201cMost companies required more capital than assumed, and did not show enough traction. Also, the regulatory tailwind completely failed in most cases.\u201d&nbsp;&nbsp;<\/span><\/p>\n<p><span>However, Peciulaitis believes there is light at the end of the tunnel.<\/span><span> \u201cI think those who are disciplined will prevail and win, both on the founder and VC side,\u201d he said.&nbsp; &nbsp;&nbsp;<\/span><\/p>\n<figure class=\"post-image post-mediaBleed aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1413255 size-full js-lazy\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2025\/04\/climate-tech-funding-q1-2025.png\" alt=\"climate-tech-funding-q1-2025\" width=\"1430\" height=\"962\"><figcaption>European climate tech startups raised <span>$2.3bn in Q1 2025.<\/span> This graph also includes the start of Q2. Credit: Dealrom<\/figcaption><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1413255 size-full\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2025\/04\/climate-tech-funding-q1-2025.png\" alt=\"climate-tech-funding-q1-2025\" width=\"1430\" height=\"962\"><\/noscript><\/figure>\n<p><span>The funding dip comes off the back of an exceptional run. European climate tech funding has soared over the past decade. The sector\u2019s best year was in 2023, when climate tech <a href=\"https:\/\/thenextweb.com\/topic\/startups\" target=\"_blank\" rel=\"noopener\">startups<\/a> raised $15bn in venture capital \u2014 more than their counterparts in the US. That\u2019s despite an overall poor funding environment that year.&nbsp;<\/span><\/p>\n<p><span>Orla Browne, head of insights at Dealroom, told TNW that there are several possible reasons why Europe\u2019s climate tech funding has slowed down so far in 2025.&nbsp;<\/span><\/p>\n<p><span>Firstly, the market is maturing. Some forms of cleantech that previously attracted heaps of VC cash \u2014 like electric mobility startups \u2014 have gone mainstream. As these markets become more established and growth stabilises, they tend to attract less early-stage venture <a href=\"https:\/\/thenextweb.com\/topic\/funding\" target=\"_blank\" rel=\"noopener\">funding<\/a>, Browne said. &nbsp;<\/span><\/p>\n<p><span>Investor hype around AI could also be fuelling the slowdown. \u201cAI is taking the oxygen out of VC, at least for other sectors,\u201d Browne said. \u201cMore than 25% of all VC now goes to AI startups, up from single-digit percentages just a few years ago.\u201d&nbsp;<\/span><\/p>\n<p><span>Another reason for the slump could be that climate tech startups are rebranding themselves as a \u201cresilience\u201d or \u201csecurity\u201d play to capitalise on skyrocketing defence tech spending and Europe\u2019s current push for tech sovereignty.&nbsp;<\/span><\/p>\n<p><span>The dip likely also signals a broader return to normal, following an unprecedented spike in VC investment in 2021. But <\/span><span>Peciulaitis believes there could be a lot of <\/span><span>\u201cunannounced deals\u201d in the pipeline this year.&nbsp;<\/span><\/p>\n<p><em>Startup funding is one of the the key themes at <a href=\"https:\/\/bit.ly\/41IbD3D\" target=\"_blank\" rel=\"nofollow noopener\"><span>TNW Conference<\/span><\/a><span>, which takes place on June 19-20 in Amsterdam. Tickets for the&nbsp;<\/span><span>event&nbsp;are&nbsp;<\/span><a href=\"https:\/\/bit.ly\/4hueZwX\" target=\"_blank\" rel=\"nofollow noopener\"><span>now on sale<\/span><\/a><span> \u2014 use the code TNWXMEDIA2025 at the checkout to get 30% off.<\/span><\/em><\/p>\n<p> <a href=\"https:\/\/thenextweb.com\/news\/why-european-climate-tech-funding-sunk-to-five-year-low-in-q1\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Europe\u2019s climate tech startups raised $2.3bn (\u20ac2bn) in the first quarter of this year \u2014 the lowest total since Q3 2020, according to Dealroom data.&nbsp; Behind the headline figure lies a complex&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16321,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/16320"}],"collection":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16320"}],"version-history":[{"count":0,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/16320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/media\/16321"}],"wp:attachment":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}