Climate technology startups raised a record $12 billion in venture capital during the first quarter of 2026, a 45% increase over the same period last year. The surge was driven by massive rounds in battery storage, carbon capture, and sustainable aviation fuel companies as investors bet on the accelerating energy transition.
Notable deals include a $1.2 billion round for solid-state battery maker QuantumScape and a $800 million raise by carbon removal startup Climeworks. Government incentives and corporate sustainability commitments continue to provide strong tailwinds for the sector.
Venture capitalists note that climate tech investments are increasingly generating competitive returns, with several portfolio companies achieving profitability faster than traditional clean energy timelines would suggest.
