Climate Tech Investment Trends: 2025

Climate tech venture and growth investment rose 8% to $40.5bn in 2025, the first annual increase since the boom years, even as deal count fell to a four-year low. Investors placed fewer, larger bets on category leaders with proven technology and credible paths to deployment.

Demand for electricity, led by AI and data centers, pulled capital toward gridtech, virtual power plants, and flexibility. This fifth annual report breaks down investment by stage, vertical, region, investor, and exit.

• Investment totaled $40.5bn in 2025, up 8% from 2024, while deal count fell 18%.
• Growth investment jumped 78%, and Series C investment fell 32%, making it the new valley of death.
• Energy grew 31% to $14.4bn, 36% of the total and a three-year high.
• US investment grew 27% while Europe dropped 13%.
• Cumulative investment since 2020 reached $255bn.