Europe’s climate tech startups are hitting the valley of death. Could pension funds offer a lifeline?

27 jan. 2026
06:00
Europe’s climate tech startups are running out of cash just when they need it most, a new World Fund report warns.
We break down the key findings and explore how Europe could unlock more institutional investment from pension funds and insurers to bridge the Series B funding gap.
“Europe is not short of capital,” founding partner Craig Douglas tells Impact Loop.
We break down the key findings and explore how Europe could unlock more institutional investment from pension funds and insurers to bridge the Series B funding gap.
“Europe is not short of capital,” founding partner Craig Douglas tells Impact Loop.
European climate tech startups are consistently running out of cash when it’s time to scale, according to a new report from World Fund, highlighting what the firm says is a structural shortage of growth capital across the continent.
Between 2020 and 2024, only 15% of European climate tech startups that raised seed funding went on to reach Series B, compared with 25% in the US, the report found.