Venture Bytes #84—Venture Capital Warming Up to Climate Tech
As investors warm up to climate tech, the sector is gaining momentum. Supported by the ongoing energy crisis, favorable legislation, international decarbonization push, a massive wave of technological innovations, and the subsequently surging VC interest, the climate tech space has evolved significantly. Decarbonization tech has expanded its scope to cover all sectors with a higher carbon footprint. According to a report from McKinsey, the next-generation climate technologies in areas such as carbon capture, hydrogen, power grid, agriculture, and electrification are expected to attract $1.5 trillion to $2 trillion per year by 2025. This augurs well for the sector, which is expected to become a major growth story in the coming decade.