What Are The Top 10 Climate Tech Startups Of 2023?
ClimateAngels | Aug 19, 2023
Experts resoundingly agree – we must slash global emissions by 45% within this decade (till 2030) if we are to avert the most catastrophic consequences of a warming planet, the Earth.
In this crucible of climate challenges, innovation is not just a spark but a lifeline. Forward-thinking ventures are emerging as the harbingers of transformation, determined to chart a course toward a cleaner, greener future. Their arsenal is climate-friendly technology, the very tool we need to curtail the carbon juggernaut.
This year, we stand on the precipice of a historic investment surge. A staggering $6.4 trillion is expected to flow into the climate and cleantech sectors in 2023, a testament to the growing recognition that sustainability is not only a moral imperative but a remarkable economic opportunity.
Amid this fertile ground for innovation, a crop of trailblazing startups is sprouting. These pioneers are at the forefront of the climate tech revolution, ready to rewrite the rules of sustainable living.
In this article, we unveil the top 25 fastest-growing climate tech startups of 2023, a veritable who’s who of innovation poised to shape our sustainable future. Let’s see the profound impact they promise to deliver on our planet and our shared destiny.
Top 10 climate tech companies/startups in the world:
- Redwood Materials
Founded: 2017
Location: Carson City, NV
Goal: Reduce the carbon footprint by reusing, recycling, and remanufacturing end-of-life products
What the Company Good At: Redwood Materials, a tech-driven innovator, redefines waste management, revitalizing products’ life cycles for sustainability. They excel in handling end-of-life items, from electric vehicles to manufacturing byproducts.
Note: The company has Funding of $2.8B (Debt Financing)
- Impossible Foods
Founded: 2011
Location: Redwood City, California
Goal: Help meat lovers eat less meat to reduce carbon footprint
What the Company Good At: Impossible Foods, masters of plant-based meat, offer beef, chicken, and pork alternatives.
Note: This meat innovator secured an impressive $1.9B in funding. In 2022, “alternative protein” startups claimed 8% of climate tech venture capital, setting up themselves as a red-hot sub-sector in the climate tech space.
- Swell Energy
Founded: 2014
Location: Los Angeles, California
Goal: Reducing carbon footprints at home
What the Company Good At: Swell Energy offers innovative home lithium-ion battery systems, seamlessly integrated with solar panels for on-demand power generation and storage.
Note: In 2022 alone, the startup secured an impressive $120 million in funding. Their ambitious goal: to advance 600 megawatt-hours (MWh) of virtual power plants through 26,000 energy storage systems, empowering homes, and businesses with sustainable energy solutions across the United States.
- CellCube
Founded: 1986
Location: Wiener Neudorf, Austria
Goal: Utility and industrial storage of renewable energy
What the Company Good At: CellCube creates vanadium redox flow energy storage systems, now deployed at 130+ global sites, spanning from a South African mining plant and California medical device company to an EV (Electric Vehicles) charging station in Switzerland.
- CarbonCapture
Founded: 2019
Location: Pasadena, California
Goal: Carbon capture
What the Company Good At: Direct air capture extracts carbon from the atmosphere, enabling its underground storage or use in various industrial applications like plastic, concrete, fuel, and more.
Note: The company’s Project Bison in Wyoming aims to capture 5 million metric tons of CO2 annually by 2030, pioneering a massively scalable direct air capture initiative in the US.
- Climeworks
Founded: 2009
Location: Zurich, Switzerland
Goal: Carbon capture to reduce carbon footprint
What the Company Good At: Climeworks operates the world’s largest direct air capture storage facility in Iceland, attracting investments in carbon removal services from Microsoft, Stripe, and Shopify to promote innovation in the sector.
- Form Energy
Founded: 2017
Location: Somerville, Massachusetts
Goal: Storing renewable energy at the utility-scale
What the Company Good At: Form Energy is crafting renewable energy grid batteries, including a 100-hour iron-air battery that rivals traditional power in cost-effectiveness. plants.
Note: Form Energy secured $450 million in Series E funding in 2022. Co-founder and CEO Mateo Jaramillo was also instrumental in developing the Tesla Powerwall, a system for storing solar panel-generated energy at home.
- ChargerHelp!
Founded: 2020
Location: Los Angeles, CA
Goal: Supporting the EV infrastructure ramp-up
What the Company Good At: ChargerHelp! is a company that recruits, trains, and deploys technicians to repair electric vehicle (EV) charging stations. CEO Kameale Terry conceived the business while working at a software firm specializing in charging stations.
Note: The Infrastructure Investment and Jobs Act, a substantial $90 billion commitment to public transportation improvements, dedicates $7.5 billion to establish a network of 500,000 EV charging stations throughout the United States. With this rapid deployment of charging stations, ChargerHelp! is well-positioned to ensure their ongoing functionality and maintenance.
- CarbonCure
Founded: 2007
Location: Halifax, Nova Scotia, Canada
Goal: Making cement that suits the environment and help reduce the carbon footprint
What the Startup Good At: Figuring out suitable storage locations for captured carbon can pose significant challenges.
Note: Cement, a primary component of concrete, contributes to around 7% of global carbon emissions. Given that concrete is the second most utilized resource worldwide, surpassing all but water, CarbonCure’s innovative cement production method holds the potential to transform concrete into a carbon sink, absorbing carbon instead of emitting it.
- Northvolt
Founded: 2015
Location: Stockholm, Sweden
Goal: Scaling up EV battery manufacturing in Western countries
What the Startup Good At: Northvolt is a pioneering force in Europe, specializing in the production of cutting-edge lithium-ion batteries for electric vehicles. With its status as the most well-funded startup on the continent, Northvolt has taken on the monumental task of constructing Europe’s inaugural domestically sourced battery manufacturing facility, proudly located in Skellefteå, Sweden.
Note:
- The current bottleneck in electric vehicle (EV) production primarily stems from a shortage of batteries, and notably, most of these batteries are presently manufactured in China. A significant player in this landscape, Contemporary Amperex Technology Co., headquartered in China, commands an impressive 37% share of the global battery market.
- In 2022, this company achieved a remarkable feat by securing the highest amount of venture capital funding ever awarded to a climate tech firm, an astounding $1.1 billion, according to Climate Tech VC (Venture Capitalists). Notably, their client roster boasts major automotive players like BMW and Volkswagen. Furthermore, they currently hold an impressive $55 billion worth of orders in their pipeline.
Thinking to Invest In a Climate Tech Company or Start One?
That concludes our lineup of 2023’s fastest-growing climate tech startups. While their missions vary, they all share a commitment to safeguarding our planet.
Whether by reducing carbon footprints, enhancing waste management, or pioneering energy-efficient solutions, these innovative ventures offer a glimpse into a promising and sustainable future. If you’re out to find a climate tech startup or would like to learn about how to invest in ESG and climate-related technologies, contact us and discuss.