Climate FinTech raised record $1.2bn in 2021

Investments into Climate FinTech companies raised $1.2bn in 2021, which is three-times higher than all of the previous years combined, a new report from CommerzVentures claims.

Europe is leading the charge, with it being home to four-times as many Climate FinTechs than the US. It reports there are 228 companies in Europe and just 60 in the US.

However, despite being home to more companies, there was very little distance in the total capital raised in each region.  In Europe, a total of $624m was raised, while $576m was raised by US Climate FinTechs.

The UK leads the way in Europe, with a total of $194m raised by companies in 2021. It was followed by France, Germany, Finland and Sweden, raising $143m, $96m, $59m and 50m, respectively. The remaining countries in the top 10 were Switzerland, Italy, Denmark, the Netherlands and Belgium.

The sector is still in its early stages, with 68% of all funding in 2021 being at the seed or pre-seed stage.

The most popular sub-sectors were carbon accounting and climate risk management, with $410m and $304m raised respectively.

Finally, the report states B2B startups are more popular, having raised six-times more funding in 2021 than B2C startups. B2B companies raised a total of $1bn.

CommerzVentures identified 292 climate FinTech startups in Europe and the US.

Read the full report here.

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