Sectoral Clustering and Climate-Tech Startup Financing Through Venture Capital and Private Equity

In this study, I investigate climate-tech startup financing of venture capital (VC) and private equity (PE) investments across different sectors around the world for the 2022-2024 period. Cross-sectional analysis suggests that start-ups in sectors with higher dynamism (proxied by deal activity) received larger funding. The findings reveal a sectoral-clustering in climate-tech and the VC/PE financing across various sectors of climate-tech is not uniformly distributed. Total funding provided to climate-tech start-ups and the number of deals vary significantly across countries and sectors. I discuss the potential reasons of sectoral clustering in climate-tech and provide recommendations for policymakers. This paper contributes to the broader understanding of capital flows within the climate-tech ecosystem, offering insights for policymakers aiming to ensure efficient capital allocation for various climate solutions and accelerate the transition to a sustainable economy.

Akin Cilekoglu

Postdoctoral Researcher- Climate & Sustainability Dr. Cilekoglu is a Postdoctoral Researcher in the Climate & Sustainability program. His current research covers understanding sustainable finance practices,…

Dr. Cilekoglu is a Postdoctoral Researcher in the Climate & Sustainability program. His current research covers understanding sustainable finance practices, the implications of climate change, and the responses of firms to climate policy initiatives. He holds a Ph.D. in Economics from the University of Barcelona and an M.Sc. in Economics from Catholic University in Milan. He was previously a Lecturer at Istanbul Bilgi University and a Visiting Researcher at both LMU in Munich and METU in Ankara. Prior to joining KAPSARC, he worked as a Climate Policy Consultant for a political party.

Expertise

Sustainable Finance
Environmental Economics
Applied Econometrics

Publications See all Akin Cilekoglu’s publications