Climate Fintech shows resilience and record female founder rate in 2023

Amidst challenging market conditions, the Climate Fintech sector shows resilience, driven by regulation and rising societal demand, as well as increasing prevalence & success of female founders.

For the third consecutive year, Tenity has delved deep into the dynamic world of Climate Fintech, meticulously analyzing an extensive database of over 750 innovative startups, revealing the most exciting trends and developments in this rapidly evolving field of technological innovation. The report includes expert and collaboration insights by UBS and Norm, SIX, CommerzVentures, and Gprnt.  

Key findings highlighted in the report include:

EMEA leads in total funding and hosts 60% of all Climate Fintechs in the database, while the US still hosts the most Climate Fintechs by country

Continuing the 2022 trend, EMEA continues to lead funding overall across the sector for 2023, showing resilient funding numbers with only a slight 6,4% funding decrease vs 2022. This was driven by several mega rounds above USD 100M. Still, USA remains the country with the most Climate Fintechs.  

ESG Data and Analytics Solutions are still the top priority

With 47% of all climate fintechs offering solutions in this space, followed by digital investment solutions accounting for 25% of climate fintechs. ESG Data & Analytics Solutions’ prevalence is largely driven by increased regulatory requirements driving reporting along value chains.  

Digital Deposit & Lending Solutions buck the general negative funding trend in 2023

While there has been a general decline in funding across the board in 2023, in line with market trends, Digital Deposit & Lending Solutions defied this trend, largely due to the Enpal mega round.  

Funding in the first half of 2024 is still below 2023 levels

By the end of June 2024, overall funding was still 56% below 2023 levels –  so far lacking the mega-rounds seen in 2023. However, on a positive note, Digital Risk Analysis & Insurtech Solutions have already outperformed 2023 in the first half of 2024, indicating positive signals.  

Female founders are increasingly prevalent in Climate Fintech

35% of all Climate Fintechs included in the report have at least one female co-founder. Startups founded in recent years show an even higher rate of female founders. For the early-stage companies founded in 2023, the percentage of female founders rose even further, reaching 45%.

The funding share in Climate Fintech attracted by female founders is ahead of the larger fintech space. Our data shows 28% of the funding in H1 2024, and 24% of the funding 2023, flowed into startups with a female co-founder.

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Commenting on the findings, Co-Founder and CEO of Tenity Andreas Iten said:

"With increasing regulation and rising expectations for environmental action from companies and governments, the sector is poised for significant expansion. The growing relevance of climate fintech in financial markets highlights its critical role, especially as we face mounting sustainability challenges. Tenity, with its deep expertise in this space, is well-positioned to support this growth and help corporates engage in sustainable initiatives."

Download the full report

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