In the last decade, the US established itself as a leader infundingclimate tech ventures, with Europe trailing.
Notably, many of these ventures are developing complex hardware products, necessitating a longer path to market.
However, theres a silver lining in the climate tech sector.
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This European resilience is even more remarkable when contrasted with the US.
He highlights the wealth of innovation and early-stage research in Europe as a major attractor for US investors.
As for the drop in investment in 2023, this could be due to a combination of factors.
These can further de-risk investment opportunities and stimulate US investors to get on board.
US investors tend to participate in larger deals.
Reinaud offers a nuanced understanding of why US investors may prefer larger deals in Europe.
She argues that physical presence and familiarity with target companies significantly influence investment decisions.
Country differences within Europe
An intriguing aspect of climate tech investment is the geographical distribution across Europe.
Both for ventures with and without US investments, the UK emerges as a prime destination.
However, a deeper dive into the data reveals interesting nuances.
How do European startups best lock down US dollars?
Understanding what US investors seek in European startups is crucial for those aiming to attract transatlantic capital.
So what should you do as a founder to attract US capital?
Additionally, explore a wide range of funding options beyond venture capital, especially for hardware startups.
The US offers grants and other mechanisms that could be vital for your growth.
And, as always, spend time building relationships with US investors and potential partners.
Additionally, forming a strong team and strategic partnerships is crucial.
This doesnt just help in attracting US investment but also in navigating the global markets competitiveness and dynamics.
He holds a BSc in Sociology and an MA in International Political Economy from the University of Groningen.
She holds an MSc in Industrial Engineering from the University of Groningen.
