Innovation
Green is the new gold: Climate tech funding explained
- Innovation
- Article
- 8 minutes read
As climate tech gains traction due to urgent sustainability needs, what are the best strategies for securing funding from seed stage to scale-up in today's challenging fundraising environment?
- Climate tech funding is rapidly growing as investors increasingly prioritise sustainable solutions, presenting significant opportunities for startups focused on environmental innovation and addressing climate change challenges.
- This article outlines various funding sources available for climate tech companies, including venture capital, government grants, and corporate investments, helping clients navigate their financing options.
- Understanding the importance of sustainability in business strategies is essential for startups, as aligning with environmental goals can enhance competitiveness and attract investment in the evolving market landscape.
Funding cutting-edge climate tech businesses is a complex challenge that calls for a strategic approach to funding.
Developing never-before-seen technologies means high upfront costs, with significant research and development investment required. Couple that with the fact that these solutions are often very technical and difficult to adopt, and it’s easy to see why climate techs have a much longer go-to-market timeline – as much as 25 years.
As that’s significantly more than most VCs investment timelines, many climate techs look for corporates and partners to establish early proofpoints – before seeking VC investment.
That’s why a blending approach is so helpful, as our Head of Climate Tech, Bailey Morrow, explains.
Bailey Morrow l Head of Climate Technology, HSBC Innovation Banking"Blended capital stacks are the best way for a company to go from ideation into commercialisation."
The views expressed in this article are solely those of the authors and do not necessarily reflect the views of HSBC Innovation Banking or any of its affiliates.
