©
November 2023
Impact startups 2023
©
ImpactCity believes it is important to make impact companies and investors visible and measure the development of the worldwide impact ecosystem. Therefore, we founded the impact database with Dealroom and other partners. “Impact startups 2023” gives you the latest insights in the 2023 investments and jobs in the impact market. https://impact.dealroom.co
Strong global slowdown (36%!) in impact VC funding despite the need for a massive acceleration on SDG progress. Low and middle income countries are attracting a minimal 5% share of global impact funding, despite being the most exposed to climate change impacts. Climate-related SDGs attract, by far, the vast majority of impact investment.
Economic Value Venture capital investment into global impact startups drops down $80.0b
$60.0b
$40.0b
$20.0b
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020 2021
2022
Impact companies are worth over $2.4 Trillion $3.0t
$2.0t
$1.0t
2018
2019
2020
2021
2022
2023
2023
SDG’s with most funding
Climate tech companies raised a historical amount of private funding.
Solar attracts 84% of all VC funding in renewable energy. GEOTHERMAL
HYDROPOWER
WAVE
Climate Justice
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Emerging economies bear a disproportionate cost of climate change. Developed countries accounted for 57% of the historical cumulative CO2 emissions from fossil fuel use and industry since 1850.
Low and middle income countries, representing over 50% of global world population, account for less than 18% of the emissions.
Climate Tech funds by Investor HQ (2016-2023YTD) Africa, South America and Oceania
ASIA 6% EUROPE 16%
NORTH AMERICA 77%
Only 5% of funding went to low-income countries in 2023. While there are funds with a focus on low-income countries, they rarely have headquarters in those countries themselves.
Europe has surpassed the US as top funder of Impact startups 2023 VC investment into impact startups per HQ region
Europe
Usa
Asia
Oceania
Africa
The Netherlands over-index* on impact compared to the European average. 35%
35%
Netherlands
Europe
30
31%
25 20 15 Asia
9-10%
10
North America
5 0
2016
2017
2018
2019
2020
2021
2022
2023
*Impact investment as a percentage of total VC funding
Read the full report Impact Startups 2023