New research published by PricewaterhouseCoopers or PwC revealed that Climate tech investment is soaring this year. The research finding showed that the number of climate tech investors was 1,600 in the first half of 2021 while it was 900 in the first half of 2020. The average size of a climate tech deal was $96 million in the first half of 2021which was $27 million one year ago.
The State of Climate Tech 2021” report of PwC indicates that 14 cents of every venture capital dollar now go to climate tech. However, the most interesting part is this huge amount of money is not invested in the right sector. According to PwC, venture capital and private equity companies aren’t backing the right climate tech companies.
Global climate leader at PwC U.K. Emma Cox said, “Innovation is critical to meeting the challenge and the good news is that climate tech investment is up significantly across the board.”
Emma also said, “However, our research has found there is potential to better channel and incentivize investment in technology areas that have the greatest future emissions reduction potential. This raises the question of why these sectors are missing out — are investors missing a valuable opportunity or is there an incentive problem that needs the attention of policymakers?”