How ClimateTech is Changing the Game
By Sheetal Bahl | 21 October 2023
It's no secret – the world's thermometer is rising. The United States National Oceanic and Atmospheric Administration’s (NOAA) recent revelation about July being the hottest month in 174 years of recorded history was like adding fuel to fire. And just as we were grappling with this, the Indian Meteorological Department (IMD) chimed in: August was India's all-time scorcher in 122 years of documented climate history.
The ClimateTech Revolution
But despair not, this isn't the prologue to an apocalyptic saga. True, the data is grim, but there's an equally strong undercurrent of positive change. It whispers the possibility that, with the right push, we can curb the impending climate crisis. The solution? Strategic and timely investments in climate technology.
At the heart of this shift are some game changers from our first fund, growX Fund I. Startups like, RACEnergy and Pixxel, embody ambition and innovation. They're not just dreaming; they're doing – making tangible strides toward a greener future.
Numbers Speak Louder
To put things into perspective, global ClimateTech funding soared to a commendable $70 billion last year. India, not to be left behind, witnessed its funding rocket from a mere $100 million to an astounding $3.7 billion within seven years. However, when viewed in light of global figures, our celebrations might seem a tad premature. The world, it seems, is slowly awakening to the urgency of the climate crisis, but there's still much ground to cover.
A Global Perspective
The international ClimateTech landscape is a hive of activity. HolonIQ's data reveals that startups worldwide bagged over 3,300 VC funding rounds last year. Among the frontrunners, India emerged as one of the fastest-growing markets, albeit with room for growth. Compared to Europe's robust $35 billion funding, India's $6.2 billion might seem diminutive, but the journey has just begun.
The Many Shades of ClimateTech
The silver lining? ClimateTech investments span a myriad of sectors. From startups pioneering battery-tech, solar energy, and sustainable materials to those championing electric mobility, the scope is expansive. Yet, despite this momentum, challenges loom large. With many ventures focusing on resource-intensive projects, profitability often remains elusive. This, coupled with the high capital expenditure, makes large late-stage funding rounds a daunting task.
Policy, Promise, and the Path Ahead
While regulations like India's BRSR guidelines lay the groundwork, we need to walk the talk on our G20 promises. By fostering academia-industry collaborations and facilitating access to research labs for startups, we can pave the way for a more sustainable future.
Merak Ventures has taken the pledge seriously. Our strategy is multi-pronged, focusing on diverse areas from agri-wastage and energy efficiency to mobility and waste management. With a keen eye on the future, we're backing ventures that promise not only innovation but also impact.
The Global Commitment
The G20's ambitious roadmap, which includes a staggering $5.9 trillion earmarked for developing nations by 2030, underscores the urgency of the situation. The renewed commitment of channeling $100 billion annually from developed nations further strengthens the global resolve to combat climate change.
Towards a Greener Tomorrow
With challenges come opportunities. As we steer through the complexities of the ClimateTech landscape, our vision is clear: foster innovation, mitigate risks, and champion sustainable growth. The stakes are high, as underscored by India's net-zero emission targets and the broader goals of the 2015 Paris agreement.
In essence, it's more than just technology or investments. It's about safeguarding our planet for future generations. The narrative is unfolding, and at this pivotal juncture, our actions today will determine the legacy we leave behind.