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Release of Climate Fintech beyond the hype - 2023 Edition

June 29, 2023

According to our annual Climate Fintech report, analyzing data of a total of 607 startups globally, Europe takes the lead in total funding secured across the sector in 2022. This report features a cross-section of data from Climate Fintech startups around the world working to decarbonize using digital financial technology.

While 2022 saw a slowdown in activity across other areas, new data shows the Climate Fintech sector bucked this trend, with funding increasing across all regions surveyed.

Total funding secured in Europe equaled just below $1 billion, compared to $640 million in North America.* While the number of startups identified in LATAM and APAC are substantially lower, funding activity still accelerated too.

With regards to the classification of startups, market demand for ESG Data and Analytics Solutions remains a top priority, with 225 startups now catering to this. This reflects the slightly more developed nature of the ESG (environmental, social and governance) regulatory landscape, with more structured guidelines in place across Europe, Asia-Pacific and North America that require access to quality, reliable data. Further, the number of startups supplying digital assets solutions has increased from 46 to 72, in line with increasing demand for these types of investments.

The report also highlights an increase in female founders - more than a third of all Climate Fintechs have a female CEO or Co-Founder. For startups founded between 2019 and 2022, this rate is at 37% versus startups founded the three years previous with 35% (2016-2018).

Commenting on the findings, Co-Founder and CEO of Tenity Andreas Iten said:

There is increasing pressure on both companies and governments to bolster their sustainability commitments in response to growing demands for environmental action. The different use-cases and applications, on top of growing relevance in financial markets, means the role of Climate Fintech is more important than ever. Tenity is well positioned to support this growth.

To read the full report, download here.

*These estimates are based on publicly disclosed funding for the startups included in the Tenity report.