FCF CleanTech VC Report - FCF Fox Corporate Finance GmbH

FCF
CleanTech Venture Capital Report

The ‘FCF DeepTech Series’ is a quarterly series of reports tracking European venture capital funding trends within four main DeepTech verticals. We highlight deal counts, volumes, investor interests, subsector trends, geographic hotspots, IPO activity as well as M&A / trade sale activity. Each quarter one of the four verticals – CleanTech, Advanced Manufacturing, Industrial Internet of Things (IIoT) and Robotics – is examined individually.

Each report is a quick reference for investors, corporates and professionals for the funding trends within the respective vertical.

FCF CLEANTECH VENTURE CAPITAL REPORT

This edition of the inaugural ‘FCF DeepTech Series’ focuses on VC funding developments within the European CleanTech vertical. The European CleanTech vertical has been split into six main subsectors:

Alternative Fuels & Materials
E-Mobility
Energy Efficiency
Energy Generation
Energy Storage
Recycling, Waste & Environment

Key findings are:

CleanTech boom with record high: Despite the headwinds in the VC market, the European CleanTech market reached a new high with over 1,400 closed deals in 2024 – a >20% increase vs. 2023. The increase is even more profound on the medium term. Compared to 2020, deals are up from 674 to 1,469 (22% CAGR) and deal volumes are up from €2.4bn to €7.2bn (32% CAGR)
2022 and 2023 hype driven by mega-deals: In 2022 and 2023 mega-deals (mostly around the subsector “Energy Storage” from, e.g., Northvolt) created a small hype with volumes per year exceeding €10.0bn and €9.8bn, respectively. In 2024 volumes returned to a more sustainable and diversified level of €7.2bn
Germany on the rise: With €6.4bn volume raised in 678 deals, Germany ranks among Europe’s top 3 CleanTech markets (17.5% and 12.3% of total volume and closed deals) – still underrepresenting the volume due to a 40% share of undisclosed transaction sizes. Further, 6 out of the Top 10 CleanTech deals in 2024 have been raised by German start-ups (1 and 4 in the Top 10 in 2022 and 2023), indicating their strong momentum
Subsectors “Energy Storage” and “Recycling / Waste / Environment Technologies” in focus: The two subsectors are in the spotlight of investor interest– they account for approx. 50% for both deal volume and closed transactions since 2020. Further, 7 of the 10 largest deals since 2020 are from companies operating in these two fields, further indicating the importance of these subsectors
Continuing difficult exit environment: 2024 was again a difficult year for start-up exits, especially regarding IPOs and SPACs with only 1 IPO (Imeon Energy Société). The M&A market turned back to 2021 levels with almost 50 transactions. Combined, this results in a mixed picture for potential exits

DEEPTECH RESEARCH SERIES

The “FCF DeepTech Series” is a quarterly series of reports tracking European venture capital funding trends within four main DeepTech verticals. We highlight deal counts, volumes, investor interests, subsector trends, geographic hotspots, IPO activity as well as M&A / trade sale activity.
Each quarter one of the four verticals – Cleantech, Advanced Manufacturing, Industrial Internet of Things (IIoT) and Robotics – is examined individually.

Each report is a quick reference for investors, corporates and professionals for the funding trends within the respective vertical.