Energy investments in emerging businesses within the energy sector have increased fourfold
The investment landscape for energy start-ups and scale-ups in Europe has seen significant growth over the past few years, according to data sourced from Dealroom.co. The data reveals that the United Kingdom has the highest number of energy start-up and scale-up companies in Europe receiving funding, with a total of €9 billion invested in 109 companies between 2021 and 2024.
This investment growth is part of a larger trend, with the combined investment in energy start-up and scale-up companies in the US, UK, Germany, Netherlands, and Sweden exceeding €38 billion. The US leads the way globally, investing €16 billion in 55 energy start-ups and scale-ups during the same period.
The Netherlands follows closely behind, investing €3 billion in energy start-up and scale-up companies, while Germany invests €7 billion. Sweden, too, has contributed €2 billion to the sector.
The investment growth in Europe's energy start-up and scale-up companies has been substantial, increasing more than four times from its previous level. This growth was reported by LCP Delta's Follow the Money Dashboard, a tool that tracks investment trends.
Despite the US's dominance in overall investment, the UK's position in Europe is noteworthy. With its rich history in technology and innovation, the UK has long been a hub for venture capital activity. For example, New York City alone has seen venture capital funding totals of around $179.5 billion across all startups from 2018 to 2024, indicating a strong investment environment.
While China and Hong Kong are not among the top countries in terms of specific funding amounts for energy start-ups and scale-ups during this timeframe, they account for a significant share of global IPO proceeds and capital market activity, reflecting strong investment flows potentially benefiting energy companies as well. India, with its rapid economic growth and expanding tech services sector, has also become a fast-growing hub for innovation, likely increasing energy-sector investments, although specific numbers for startups and scale-ups are not detailed here.
Global institutions like the World Bank have contributed significant multi-year funding to the energy sector, but typically in the broader context, not limiting to startups alone. However, the World Bank's efforts in private-sector investment facilitation in developing countries are expanding, potentially paving the way for increased investment in energy start-ups and scale-ups in the future.
In summary, the investment growth in Europe's energy start-up and scale-up companies has been impressive, with the UK leading the way in Europe. The US remains the dominant player globally, but the UK's position in Europe, coupled with the growing investment trends in China, Hong Kong, and India, suggests a promising future for the energy sector.
The ongoing investment trend in Europe's energy sector is not limited to Europe, as the combined investment in energy start-up and scale-up companies in the US, UK, Germany, Netherlands, and Sweden has surpassed €38 billion. This investment growth, particularly in the UK, has been significant, increasing more than four times from its previous level.
Investment in energy start-up and scale-up companies is not just a European or American venture, as global institutions like the World Bank are also contributing to the sector, such as their efforts in private-sector investment facilitation in developing countries, potentially paving the way for increased investment in the future.
