Yahoo Finance UK start-ups working on “climate tech” raised over £1 billion from investors last year
London-based tech start-ups aiming to help create a low-carbon economy attracted nearly £1 billion in venture capital backing last year, according to new research.
Amsterdam-based tech data provider Dealroom found UK start-ups focused on "climate tech" - companies creating technological products and services that can help decarbonise the planet and tackle the climate crisis - raised £1.09 billion from investors in 2020, and £261 million so far in 2021. Most were based in the capital.
The Government’s expert tech advisory body, the Digital Economy Council (DEC), said the figures suggest the UK's climate tech sector "has moved firmly into the venture capital mainstream".
The data showed the UK is home to 520 climate tech startups, spanning areas including energy, food, transport and fashion.
Those raising significant funds in the past year include London-based startup Cervest, which built the world’s first AI-powered "climate intelligence" platform.
Others include Supercritical Solutions, which is working to develop low-cost pressurised green hydrogen as an emissions-free alternative fuel, and DryGro, an agri-tech company growing animal feed crops on arid land. There is also Carbon Re, which helps foundation industries – those producing cement, steel and chemicals - reduce their emissions.
Investors in London “climate tech” firms included Omers Ventures, a Canadian VC giant. Its principal, Will Dufton, said: “Developing the deep tech to power these companies takes time and resources, so it’s important they have access to the support they need.”
The Government has predicted the UK's green economy is expected to be worth £918 billion by 2035, and is likely to provide 250,000 jobs over the next 10 years.
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