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5 areas where VCs can play an outsized role in addressing climate change

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Jamil Wyne
Contributor

Jamil Wyne is an advisor, investor and author focusing on entrepreneurship, technology and economic development in emerging markets. He has worked with the World Bank, IFC, UN, Clean Energy Venture Group, Schmidt Futures, Ashoka, and other organizations.

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A close look at Singapore’s thriving startup ecosystem

Abrar Chaudhury
Contributor

Dr. Abrar Chaudhury is a climate finance research fellow at Oxford Said Business School researching on topics of global environmental change, climate finance, policy implementation, sustainable development, and corporate purpose.

While global tech and finance leaders have suggested that the world’s first trillionaire will be someone tackling climate change and that many climate unicorns are on the way, current VC levels are dwarfed by the mind-boggling funding amounts that are needed to give humanity a fighting chance.
As of October, climate-tech startups had raised over $32 billion in 2021 and, according to Dealroom and London & Co., U.S. VCs invested nearly $50 billion in climate-tech companies between 2020 and 2021. However, depending on whom you talk to, the climate finance gap currently sits at $2.5 trillion to 4.8 trillion.
To put this gap into perspective, total global VC funding (across all sectors, including climate) in 2021 was at an estimated $643 billion, and most countries in the world, aside from a handful, have a GDP under $4 trillion. Additionally, a sharp uptick in the number of climate funds and startups has some experts worrying about the potential of a bubble, and doubters may …

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