Growth stage companies propel Europe’s climate tech funding Addressing sustainability and climate challenges have become core themes of the European tech ecosystem in recent years, increasing their share of total funding consistently over the past decade. This year’s report tracks all companies that label themselves as operating within one of the themes we categorise as directly addressing sustainability or climate, such as Electric Vehicles or Carbon Markets. As also reported in previous editions of the State of European Tech, Europe has taken centre stage in fund- ing purpose-driven tech. The increase in funding captured this year is also representative of the maturing of these themes, as more Growth-stage companies capture larger rounds of funding. Share (%) of capital invested that goes to sustainability, 2014 to 2023 25 23% 20 d e t 16% s e v n i15 l a t i p a c 11% f o 10% )10 % 9% 9% ( e 8% r a 7% 7% h S 5 5% 0 4 5 6 7 8 9 0 1 2 D 1 1 1 1 1 1 2 2 2 T 0 0 0 0 0 0 0 0 0 Y Notes: 2 2 2 2 2 2 2 2 2 3 2023 data is based on 02 data to September 2023. 2 Excludes the following: biotech, secondary transactions, debt, Sources: lending capital, and Powered by grants. 155 | Companies