Decarbonization Technologies Landscape (Jolt Capital)

Summary

• Using the Jolt.Ninja AI-powered methodology, 21,992 companies were identified within the selected Decarbonization Perimeter.p.5
• Over the last 10 years, more than €179 billion has been invested in Decarbonization Technologies across more than 10k deals.p.8
• Carbon management companies attracted 26% of the capital across 22% of the deals in 2023 while representing under 10% of companies.p.9
• The Hidden Universe of unfunded decarbonization companies contains more than 15,000 companies, half of which are located in Europe.p.11
• Decarbonization companies hold roughly 120k active patents, with European and Asia & Oceania companies filing over 65% of them.p.13

Key insights

1. Investment opportunities in Decarbonization are increasingly global, with Europe and Asia & Oceania capturing 42% of the total amount raised and 61% of deals in 2023.p.8
2. Carbon management companies are catching up rapidly, securing 26% of capital in 2023 despite comprising less than 10% of total perimeter companies.p.9
3. Since 2016, European companies required 4 to 6 years on average to reach €40 million in VC/PE funding, compared to less than 4 years for North American companies.p.10
4. Around 70% of decarbonization companies (representing 2.4x the number of VC/PE-backed companies) have not received VC/PE funding.p.11
5. Although over 2,400 European companies hold active patents, their representation drops progressively in higher patent quality quartiles.p.15
6. Annual North American patent filings and top-quartile share have declined over time, whereas European filings have stabilized and Asia & Oceania showed steady growth.p.16
7. European firms account for 40% of decarbonization exit rounds per year but represent only 30% of total money raised at exit based on a 10-year average.p.18