Europe remains at the forefront of the global effort to combat climate change, with initiatives like the European Green Deal, which aims to ensure no net emissions of greenhouse gases by 2050. Namrata Sandhu Founder & CEO, Vaayu With European companies investing heavily in groundbreak- ing climate tech, circular economy solutions and more, Vaayu is placed in a unique strategic position to help tackle climate change head-on and help other businesses lower their impact. Its strong commitment to sustainability, an increasingly sup- portive regulatory environment and historical experience in green technologies uniquely position European tech to play a crucial role in addressing climate-related challenges. Sectors that are up next An analysis of the 昀氀ow of earliest-stage investment by sector provides a useful forward-looking indicator of the sectors most likely to dominate future later-stage investment. Looking at the distribution of sub-$5M rounds - which provide a general proxy for Pre-Seed and Seed invest- ment trends - Software, Carbon & Energy, and Health are the top three most important sectors for early-stage investment in 2023, followed by Enabling Technologies and Digital Infrastructure. This chart also highlights the outsized share of investment into the Carbon & Energy sector in later rounds, which captured 28% of all capital invested in rounds of $5M or more. | 134