Hello and welcome to The Green Techpreneur - the magazine and marketplace where climate founders raise faster, scale smarter, and rise together.
On our Climate Marketplace, over 200 startups have listed and raised more than €200M. With 2,000 investors on the platform and 10,000+ in our wider community, we’re connecting the global ecosystem driving climate innovation and funding.
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Two things happened in climate tech this week.
X-energy went public on Nasdaq. The company raised $1B in an upsized IPO, with shares jumping 25% in the first hour of trading. Fervo Energy filed for its own IPO at a ~$3B private valuation. The headlines were celebratory. Climate hardware is back. The IPO window is open.
The same week, Heatmap News published a detailed analysis, drawing on data from Sightline Climate, SVB’s Future of Climate Tech report, and J.P. Morgan, confirming that seed and Series A investment as a share of total climate capital has hit a 10-year low. Early-stage VC funds’ proportion of total climate capital raised has fallen from ~20% in 2021 to under 8% in 2025. Only 39% of climate-focused early-stage VC funds that tried to close last year actually succeeded.
These two facts seem to contradict each other. They don’t.
They describe the same market, from two very different vantage points.
TechCrunch named it well: the climate market is K-shaped. Two tracks, moving in opposite directions simultaneously.
The upward track: nuclear, geothermal, AI-adjacent energy infrastructure, long-duration storage. These are the companies that public markets and large infrastructure funds can underwrite. X-energy and Fervo are the proof. Nearly 28 cents of every climate equity dollar now goes to AI-enabled solutions. Three quarters of new climate fund capital in 2025 went to energy infrastructure. The IPO market is pricing these companies through the lens of AI energy demand, data centres need baseload clean power, and nuclear and geothermal can provide it. That’s a story institutional capital can invest behind.
The downward track: software, agriculture, food systems, industrial materials, the blue economy. Early-stage founders in these sectors are raising in a fundamentally different market. One where only 8% of climate capital reaches them. One where the median fund is smaller, LP patience is shorter, and the bar for commercial traction has doubled since 2021. One where 39% of the funds that were supposed to back them couldn’t even close.
This isn’t bad news for the whole ecosystem. It is, however, bad news for a very large number of founders, and it is being systematically underreported in the coverage of the “climate tech is booming” narrative.
$40.5 billion went into global climate tech VC and growth investment in 2025. That sounds significant. But follow the money:
42 infrastructure funds raised 75% of all new climate capital
Seed and Series A combined account for under 8% of that total
The One Big Beautiful Bill has contracted non-dilutive capital: DOE grants and federal incentive pathways that early-stage founders built into their models have shrunk or disappeared
50% of investors now cite regulatory uncertainty as their top threat
The founders most exposed: those who built financial models around IRA incentives that are now partially rolled back, and those raising in sectors where the K-shape is working against them.
1. Know which track you’re on
If you’re building in software, agriculture, or industrial materials, the X-energy IPO is not your story. Retrofitting an AI energy narrative onto your pitch when it doesn’t fit costs you credibility with the exact investors you need. The specialist early-stage climate funds still actively deploying, Footprint Fund I, Burnt Island Ventures, MCJ Collective, Climate Capital Angels, are looking for founders who understand their market clearly.
2. The investor you need is not where you think they are.
The investors still writing early-stage climate cheques in 2026 are not on the first page of Google. They’re specialist, often community-linked, and they discover founders through warm introductions, not cold outreach. The gap between a 2–10% cold response rate and a 10–34%+ warm intro response rate is real and widening. The founders raising in this market are inside the right rooms.
3. Reframe your traction metrics before your next pitch.
Series A companies in 2026 need approximately double the revenue that was required in 2021 before investors commit. If you’re a hardware or deeptech founder who can’t yet show revenue, translate it: pipeline value, letters of intent, pilot agreements, manufacturing progress, offtake conversations. Make the commercial trajectory legible in language investors can underwrite.
The Green Techpreneur’s Climate Marketplace is helping connect qualified climate founders to the investors still actively deploying at seed and pre-seed, through introductions that actually close.
If you’re a climate founder navigating this bifurcated market, your profile belongs on the platform.
“The Climate Marketplace helped us connect with a high-quality early-stage investor who understood the company’s mission and progress and ultimately participated in the seed round. I would recommend The Green Techpreneur Marketplace to founders and accelerators operating in sustainability and climate-related sectors.”
Edoardo Zarghetta, Non-exec Director, Ikkaton
Ecopha Biotech (Australia) – co-producing sustainable aviation fuel and PHA bioplastics from Pongamia trees, unlocking a trillion-dollar market (€8.5M Series A, fundraising from April 2026).
SeaLumber (United States) – turning sargassum seaweed, agricultural waste and recycled plastics into durable, cost-competitive sustainable lumber, cutting carbon, waste and deforestation (€500K Pre-seed, fundraising from April 2026).
Scudo (United States) – a reusable medical mask eliminating 10,000x waste versus disposables, offering superior protection for dentists and GPs (€3.7M Seed, fundraising from April 2026).
CLIC RECYCLE (Spain) – turning human hair waste into patented smart biomaterials that replace plastic in agriculture and water, saving water, regenerating soil, and cutting pollution via a scalable circular supply chain (€700K Seed, fundraising from April 2026).
BOAS (Netherlands) – profitable circular fashion platform rescuing unsold and returned clothing to generate resale revenue, social jobs, and 90% profit for impact (€193K Seed, 65% of €500k raise already committed).
💡 View and contact more startups raising investment on the Climate Marketplace
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#SparkTheTransition 🥂
May is the most beautiful month of the year, a month alive with warm colour. The flowers and trees are in full bloom, and even the sun joins this rhapsody by emitting warmer rays. - Lillian Berliner
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