Methodology note Creating a taxonomy is a hard task, and far from an exact science. However, we aim to 昀椀nd maximum align- ment between our taxonomy and the real problems companies are solving. The following chapter leverages a collection of models that map companies and startups to a taxonomy of 12 high-level sectors as well as 75+ building-block themes. More speci昀椀cally, sectors are where companies would 昀椀t in a description of a country’s economic industries, for example, Education or Health. A company can only have one sector but might have multiple themes. Themes are more speci昀椀c expressions of the company’s offer, that they might use in their self-description or a pitch. Examples we map include DevOps, Digital Care, Electric Vehicles or Sustainability. These help us speak a common language when analysing the thematic 昀氀ow of talent and capital within the European tech ecosystem. Climate tech dominates overall capital 昀氀ows The Carbon & Energy sector, which encompasses climate tech, accounts for 27% of all capital invested in European tech in 2023, more than doubling its share of investment since 2021. This has seen the sector overtake Finance & Insurance, as well as Software as the single largest sector by capital raised. This not only represents a dramatic increase in the scale of capital invested behind the green transition, but also a clear slowdown in 昀椀ntech investment volumes since the peak of the market. Distribution of total capital invested by sector (%), 2014 to 2023 Transportation 100 Food and Drinks (incl. Agriculture) Education Wholesale & Retail 75 Warehousing & Manufacturing l a t Social, Arts, i p Entertainment & Recreation a c l a 50 Digital Infrastructure t o t Finance & Insurance f o Enabling Technologies % Health 25 Software Carbon & Energy 0 4 5 6 17 8 9 0 1 2 D 1 1 1 0 1 1 2 2 2 T 0 0 0 2 0 0 0 0 0 Y 2 2 2 2 2 2 2 2 3 Notes: 2 0 Data is as of 30 September 2 2023. Excludes the following: biotech, secondary transac- tions, debt, lending capital, and grants. Sources: Powered by 131 | Companies