VC funding for climate tech went off a cliff in 2025. What happens next?
11 dec. 2025
12:05
VC funding for European climate tech plunged to a five-year low in 2025 – leaving scale-ups particularly exposed.
We spoke to some of the continent’s top impact investors to decode:
—> Why the VC wave has ebbed – and who’s left stranded
—> The gaps Europe must fix to scale climate tech
—> Fresh sources of capital shaking up the sector
—> The niches and funds that could make or break 2026
“Climate tech remains a massive, massive opportunity measured in the trillions,” says Kevin Bone, partner at Lightrock.
We spoke to some of the continent’s top impact investors to decode:
—> Why the VC wave has ebbed – and who’s left stranded
—> The gaps Europe must fix to scale climate tech
—> Fresh sources of capital shaking up the sector
—> The niches and funds that could make or break 2026
“Climate tech remains a massive, massive opportunity measured in the trillions,” says Kevin Bone, partner at Lightrock.
Venture capital funding for European climate tech has cooled sharply this year, down to $9.6bn from $13.6bn in 2024, and far below the $23.9 billion peak in 2021. After a period of exuberant investment, the sector is now entering a phase of recalibration.