.png)
We often hear the narrative that the climate tech sector lacks large, successful exits, but is that truly the case? After taking a closer look at the last two years of climate tech exit activities, the data reveals that the sector is delivering on its promise despite challenging conditions.
Focusing on M&As, IPOs, and SPACs of VC/PE-backed companies, here’s what we found:
1. As of November 2024, 222 climate tech exit deals were recorded year-to-date, closely mirroring the 247 deals seen during the same period in 2023. Despite challenging market conditions in 2024, climate exit activity in Q2 and Q3 showed strong resilience.
2. Over 60% of climate tech exit deals are driven by Europe and the US. The two regions continue to offer strong exit opportunities.
3. Energy and transportation companies dominate the largest climate tech exit deals, highlighting their leadership in the sector.
4. Globally, there are over 100 climate tech unicorns, representing the next wave of climate tech companies on track to achieve high-value exits.
The climate tech sector is demonstrating strength, adaptability and potential, even amid uncertainty. It continues to show that creating real impact and achieving strong returns is not only possible but increasingly feasible.
