Despite a significant decrease in startup investment in most industries, sustainable tech funding managed to maintain the 2022 level on a global scale.

According to the recent Crunchbase findings, cleantech and sustainability-focused funding categories remained flat in 2023, collectively gathering approximately $13.9 billion.

Although it’s still well below the 2021 peak ($18.2 billion), sustainable tech funding in 2023 hasn’t been hit as hard as many other startup sectors.

For example, back in the middle of the year, it was predicted that?European tech startup funding would drop 39% in 2023, largely due to a retreat from US investors.

The majority of sustainability-focused funding in 2023 went to companies working on eco-friendly batteries. Several of them received $1 billion or more in funding this year.

Among the most notable deals in the space reached in 2023, there are:

• Verkor, a French startup focused on low-carbon battery manufacturing, raised $2.1 billion in debt and equity financing in September, including a $900 million Series C. The startup plans to use funds to open its first gigafactory in 2025.
• Stockholm-headquartered Northvolt, which makes lithium-ion batteries with a focus on lower carbon footprint production processes, raised a $1.2 billion convertible note in late August.
• Redwood Materials, a US battery recycling startup, received $1 billion in Series D funding in August.
• Ascend Elements, another US-based manufacturer of battery materials from spent lithium-ion batteries, secured $460 million in Series D financing.

Other sections of investor interest included carbon capture and sequestration. CO? removal and storage startups have also closed solid venture rounds this year. In addition to carbon capture, stable investment focus revolved around the climate software theme.

As for the climate-focused investors that dominate in deal count and total funding, Crunchbase mentions Lowercarbon Capital, Temasek, Khosla Ventures, TPG Rise Climate Fund and Breakthrough Energy Ventures.

It is clear that sustainable investing remains in the spotlight as long as the climate change challenges are pressing. You might be also interested in?How AI Can Facilitate Sustainable Investing.