In 2023 climate technology experienced a significant boost, marked by regulatory advancements, the COP28 summit, and continued venture capital funding in emerging climate technology start-ups. The attention to environmental concerns globally has prompted more stringent regulations, driving a demand for innovative solutions. Furthermore, the infusion of venture capital into climate tech start-ups further highlights the industry’s growing importance.
From our perspective, we have been involved in multiple founder-led sales transitions, supporting our partners in crucial hires like founding Account Executives, Customer Success Managers, and/or Sales Leaders. This dynamic environment underscores the collective commitment to sustainability and the pivotal role of technology in addressing climate challenges.
Climate Technology’s 2023 challenges
In 2023, despite the challenges faced by the SaaS industry, organizational growth also impacted the climate technology sector. The year proved to be tough for many companies within this space, with some falling due to a lack of funding. Amidst these setbacks, climate technology had to be resilient to survive, a testament to its enduring importance. Note to founders – continue to be resilient, because without resilience we won’t be able to solve the greatest challenge our generation will face. It serves as a reminder that in the face of adversity, keeping calm and carrying on is an indispensable quality for driving positive change and overcoming obstacles in the pursuit of sustainable solutions.
Despite a downturn in overall VC funding for SaaS, many climate-focused start-ups defied the trend and grew significantly. A number of these companies have secured substantial Series A and Series B rounds, which predicts that more is to come.
Climate Technology’s 2024 Growth Outlook
Overall, we anticipate a sustained momentum, with prospects for additional funding rounds appearing promising. The final discussions with founders in 2023 often revolved around plans for upcoming funding rounds and aspirations for sustained growth in 2024. This resilience within the climate technology sector shows its enduring potential and the unwavering commitment of founders to drive positive impact in the face of market fluctuations.
Going into 2024, we hope (and expect) that this sector will continue to flourish. We hope to support new and existing partners on their GTM elevation this year!
By James Borner