UK Climate Tech Startups Secure Record £1 Billion in Funding

Climate change

Climate tech startups in the UK attracted a record £1.09 billion in venture capital investment during 2020, signaling a decisive shift towards sustainability-focused innovation within the British tech sector. 2021 has maintained this momentum, with £261 million invested to date, according to new data from Dealroom, an Amsterdam-based tech analytics firm.

The Digital Economy Council (DEC), the government’s technology advisory body, affirmed that these figures position the UK’s climate tech sector as a mainstream contender within the venture capital landscape. London remains a central hub for this growth.

Spanning industries such as energy, agriculture, transport, and fashion, the UK boasts an impressive roster of 520 climate tech startups. Notable recent success stories include Cervest, whose AI-powered “climate intelligence” platform secured substantial funding. Others, such as Supercritical Solutions, DryGro, and Carbon Re, are respectively pioneering advancements in green hydrogen fuel, sustainable agriculture, and emissions reduction for heavy industries.

This surge in climate-conscious investment has attracted the attention of international players like Omers Ventures, a Canadian VC giant. “The necessary deep tech development requires time and substantial resources,” noted Will Dufton, principal at Omers Ventures, highlighting the need for sustained support.

The UK government forecasts substantial returns on this investment, projecting a green economy worth £918 billion and capable of creating 250,000 jobs over the next decade.

Advertise Here