Most of the mega deals came from climate tech

Last year startup funding for Europe fell by over 38%. For Q1 2024, there has been a 2x increase in startup cheques that are $100mn+.

This week we look at the data & trends behind mega funding rounds for this quarter, focusing on how European climate tech startups have secured $7.5 bn in funding.

In today’s insights 🔍 

• Climate tech is trending
• Electra’s - $330mn Series B
• Climate tech worldwide
• European mega round hubs

Read Time: 2.5 minutes

Mega round ($100mn+) Startups 📊 

For Q1 2024, there were 42 mega rounds ($100 mn+ startup investments) in Europe, totalling $18.4bn. 43% of which were led by climate tech startups. This marked a significant increase from Q1 2023, which had just 21 such rounds, marking Q1 2024 the most robust quarter since Q2 2022.

This significant rise in funding is largely due to effective government policies across Europe, which have actively encouraged investments through financial incentives and favourable regulatory conditions, encouraging larger deal-size investments across government-supported startups.

Total funding for Climate tech startups 💹 

Europe’s climate tech investments have remained robust while sectors in other regions, notably the U.S., have experienced significant downturns since 2021.

Europe's funding resilience is reinforced by proactive government policies and targeted financial support, effectively mitigating the volatility of private markets. This strategic intervention significantly enhances the region's appeal to venture capital and private equity investments by lowering the risks associated with subsequent funding.

Weekly Startup News 🧑‍💻

50 climate tech founders and investors launch Climate Brick
Climate Brick is a collaborative initiative to scale climate tech, offering a framework with actionable advice and resources for founders and investors.

Berlin-based fintech raises €35 mn
Finmid has raised €35 mn and partnered with Wolt to offer tailored financing for SMBs, challenging traditional banking.

Climate tech startup by ex-Palantir exec raises $3.5 mn
Unwritten, raised $3.5 mn to aid investors in making informed capital allocation decisions through responsible financial models.

European mega round hubs 🏢

Berlin and Stockholm are key hubs for startup funding with five +$100mn startup deals each in Q1 of 2024, highlighting their importance as tech centres. From these deals, 6 of the 10 mega rounds for the hubs were allocated to climate tech, including Enpal, Northvolt & Polestar.

Their ability to attract significant funding is backed by strong tech infrastructures, skilled professionals, and proactive sustainability policies. The consistent flow of investments into these cities underscores their crucial role in advancing Europe's green technology agenda.

SearchVentures Insights

The first quarter of 2024 saw 42 large-scale funding rounds in Europe totalling $18.4 billion, demonstrating strong confidence in the sector, particularly in climate tech which accounted for 43% of the total investment. Berlin and Stockholm have emerged as central players in this trend, due to their supportive tech ecosystems and government policies that attract significant capital.

This surge in funding reflects a deliberate emphasis on sustainable development within Europe's investment community. The focus on climate technology aligns with wider environmental goals. This strategic shift offers investors opportunities to generate substantial returns while contributing to a sustainable future.

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Cheers,

Odin Lund & Hariprasad Mohandas