According to the data compiled by Dealroom for Talis Capital, in 2021, 13 per cent of European venture funding went to climate tech startups. Climate tech has been gaining momentum in Europe, with funding surging ten times from $1.1 billion in 2017 to $11 billion in 2021.

The Rise of European Climate Tech report says the venture capital firms provide the most money at 41 per cent of all investments, followed by corporate investment and private equity at 29 and 18 per cent, respectively.

In 2021, the European climate tech fund rose to $2.6 billion, which is twice the amount in 2020. In the UK, the trend continues, as several funds have launched to invest in climate technology startups. Climate VC, an impact venture fund, is to invest in 120 UK-based early-stage climate startups in the next three years.

Climate VC joins other impact funds, including Elbow Beach Capital and SIS Ventures to invest in climate tech startups.

According to a report published by Tech Nation Report at the beginning of this year, climate and energy tech startups in the UK scrambled to get later-stage funding compared to other verticals despite surging investments across Europe. The only UK climate tech company to make it to the unicorn stage was Infarm. It is one of the 16 climate tech unicorns in Europe.

Matus Maar, co-founder and managing partner at Talis Capital, said: "We are in the midst of a perfect storm of opportunity for innovators in the climate space to succeed. Technological innovation is enabling superior unit economics; more supportive policies and regulation are enabling commercialisation; corporate and consumer demand is at an all-time high; and, in turn, investors are waking up to the opportunity now more than ever."

The Series A rounds saw the largest increase, with $201 million invested in 2017 and $390 million in 2021.

Recent investments indicate that investor interest in climate technology firms remains high. Once again, impact tech startup received £2.55 million in pre-seed investment this week to establish a decentralised network of automated, micro-cleaning facilities.