# 2023 climate tech venture investment trends

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2024-01-11
- Length: 43m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends

## Summary

Kim Zou, co-founder and CEO of Sightline Climate, joins host Shayle Khan to analyze the 2023 Climate Tech Investment Trends report, revealing a 30% decline in venture funding driven by the disappearance of mega-rounds rather than a drop in deal count. The discussion highlights how sectors like food and land use suffered significant declines due to bankruptcies in alternative proteins and indoor farming, while heavy industry emerged as a relative winner through large-scale projects like H2 Green Steel. Zou argues that smaller deal sizes indicate market maturation, as the sector shifts from dilutive growth rounds toward more realistic milestone-based financing and eventual graduation to project finance.

## Chapters

- [0:01](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=1) Introduction: Catalyst and 2023 Market Overview
- [3:56](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=236) Sightline Climate Report: 30% Decline and Deal Counts
- [14:40](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=880) Vertical Analysis: Food, Land Use, and Heavy Industry
- [24:46](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=1486) Exit Activity: IPOs, SPACs, and Carbon Engineering Acquisition
- [27:10](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=1630) Bankruptcies: Proterra and Market Correction
- [31:07](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=1867) Funding vs. Emissions: Overfunded Transportation and Underfunded Industry
- [35:39](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=2139) Investor Maturation: Repeat Investors vs. Climate Tech Tourists
- [37:35](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=2255) Geographic Trends: US, Europe, and Emerging Hubs
- [42:16](https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends#t=2536) 2024 Outlook: Market Clarity and Graduation from Venture

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Energy & climate tech](https://hardwarepodcasts.com/topic/energy-and-climate-tech)
- [Direct-to-consumer & e-commerce](https://hardwarepodcasts.com/topic/direct-to-consumer)

## Most relevant to

early-stage companies

## Mentioned

- Sightline Climate (company)
- EnergyHub (product)
- Pitchbook (company)
- Beyond Meat (company)
- H2 Green Steel (company)
- Boston Metal (company)
- Carbon Engineering (company)
- Proterra (company)
- NextEra Energy (company)
- N-Light Renewables (company)
- LanzTech (company)

## Related episodes from other shows

- [The Climate Hardware Playbook: Strategies for Founders and Investors with Christian zu Jeddeloh and Sophia Escheu](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-09-26-the-climate-hardware-playbook-strategies-for-founders-and-investors-with-christi) (Hardware to Save a Planet)
- [Gigatons of Impact: Why Climate Hardware Needs Catalytic Capital](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2025-06-19-gigatons-of-impact-why-climate-hardware-needs-catalytic-capital) (Hardware to Save a Planet)
- [Nurturing Companies that Have a Net Positive Impact on Nature: Insights from Tom Chi of At One Ventures](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-05-23-nurturing-companies-that-have-a-net-positive-impact-on-nature-insights-from-tom) (Hardware to Save a Planet)
- [#161 - Emerging CPG Valuations: Ryan Williams, FABID](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2024-09-17-161-emerging-cpg-valuations-ryan-williams-fabid) (The Startup CPG Podcast)
- [Nurturing Deep Tech Startups to Address Climate Change: A Conversation with Andrew Gollach of HAX](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2023-12-21-nurturing-deep-tech-startups-to-address-climate-change-a-conversation-with-andre) (Hardware to Save a Planet)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/catalyst/2024-01-11-2023-climate-tech-venture-investment-trends. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Catalyst.