US Venture Capitalists: Big Opportunities in European Climate Technology

Sophia Rodriguez

What’s Happening & Why This Matters

The US has long been a leader in funding climate tech ventures with Europe lagging behind. The uncertain climate tech sector will soon see growth in European climate tech startups as the EU’s investment in the sector nearly equaled that of the US in 2023 despite a steep decline in overall funding. One of the reasons for this shift is growing US participation in European ventures.

European Trends & Predictions

Despite a 37% decline in overall venture capital globally, European ventures only saw a 6% reduction in investments. US investor participation in European deals grew from 8% in 2019 to 18% in 2022. Gabriel Scheer of Elemental Excelerator believes this increase can be attributed to the wealth of innovation and early-stage research in Europe along with a supportive policy environment.

In terms of geographical distribution, the UK, France, and Germany continue to lead the way with attracting US investors. Outside of these three countries, the remaining European markets including Switzerland, Sweden, the Netherlands, Spain, and Norway each account for about 5% of deals.

t/f Summary: What’s Next

To capitalize on the growing interest of US investors in European ventures, founders must prove their model by achieving success across different European markets. Additionally, explore a wide range of funding options and seek advice from US-based VCs to tailor your approach to the US market. Also, avoid the “engineer’s syndrome” by offering a vision that emphasizes market impact and potential. Forming a strong team and strategic partnerships is crucial for attracting US investment and navigating the global market’s competitiveness and dynamics.

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By Sophia Rodriguez “TF Eco-Tech”
Sophia Rodriguez is the eco-tech enthusiast of the group. With her academic background in Environmental Science, coupled with a career pivot into sustainable technology, Sophia has dedicated her life to advocating for and reviewing green tech solutions. She is passionate about how technology can be leveraged to create a more sustainable and environmentally friendly world and often speaks at conferences and panels on this topic.
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