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The Israeli Climate Tech Sector
Q1 2023 Report​ by Start-Up Nation Central​



An analysis of private and public investments, M&A activity, and IPOs by period and subsectors in the rapidly evolving Climate Tech landscape.

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​Summary of Insights ​

Following record-breaking venture activity in 2021 and in the first half of 2022, global VC investments in Climate Tech started to cool as part of a global macro slowdown towards the end of the year. In Israel, 2023 started with a challenging investment environment. Nonetheless, the first quarter of the year showed a relative improvement in the overall sum of investments in Climate Tech compared to the last quarter of 2022 - primarily thanks to funds raised in the public markets. Climate Tech winners in the first quarter spanned a range of domains, from sustainable materials, solutions to food waste, and nuclear energy. Recognizing the opportunity, more new startups are developing deep-tech solutions. We expect the sector to be relatively resilient to the global downturn compared to other sectors. This is due to the urgency for climate solutions and the expectation that regulation and corporate commitments for decarbonization will necessitate the rapid rollout of these solutions. ​


Start-Up Nation's Impact on the Sector​

Israel is a recognized leader in food & land use and sustainable water solutions. With the growing global focus on climate innovation, Israeli entrepreneurs are leveraging their skillset to innovate additional climate tech domains. Start-Up Nation Central supports the growth of the ecosystem by providing access to transparent and quality data on the sector and creating business opportunities for multinational corporations, investors, and government leaders to engage with the Israeli entrepreneurship community.


Yael Weisz Zilberman, Climate Tech sector lead at Start-Up Nation Central

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Content

Israeli Climate Tech Landscape

Our mapping shows a thriving Climate Tech industry that utilizes technology to support decarbonization, climate adaptation, and environmental protection. The number of companies included is expected to increase as we continue mapping the ecosystem and new startups emerge to tackle climate-related issues.​

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836

Companies

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63

Active Investors

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30

Investment Rounds
Q1 2023

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Q4 2022​

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$481M

Amount of Equity Invested Q1 2023

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Q4 2022​

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$18M

Amount of Exits Value
Q1 2023

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Q4 2023

* Increase/decrease is in comparison to the prior quarter (2022-Q4)​

* Equity includes VC investments and funds raised in the public market​

Climate Tech Sector Breakdown​

Food & Land Use, Clean Industry Tech, and Energy Transition subsectors are leading in the number of companies and the amount of private capital raised. In Carbon Tech 69% of the companies are less than three years old, while in the Sustainable Water subsector, 40% are over 15 years old. ​

Here are the full lists of Israeli companies with solutions specifically for: Energy Transition, Sustainable Water Solutions, Eco-efficient Transportation & Logistics, Food & Land Use, Clean Industry Tech, and Carbon Tech.

* A sample of prominent companies in the subsectors​



Clean Industry Domain

The Clean Industry Tech subsector is dominated by Sustainable Materials Circularity, with over 150 active companies​.

​Here are the full lists of Israeli companies with solutions specifically for Sustainable Materials Circularity, Eco Efficient Manufacturing and Green Construction.

Energy Transition Domain

Clean Energy Generation and Eco-Efficient Energy Usage are the leading domains in the Energy Transition subsector​.

Here are the full lists of Israeli companies with solutions specifically for: Clean Energy Generation, Eco Efficient Energy Usage, Eco Efficient Energy Storage and, Eco-Efficient Transmission and Distribution.

Carbon Tech Domain​

Carbon Tech companies outperform their portfolio size, attracting 18% of Climate Tech investments despite comprising only 6% of the portfolio​.

​Here are the full lists of Israeli companies with solutions specifically for: Carbon Analytics Fintech Consumer and Carbon Capture Storage Sequestration Utilization.

Climate Tech Investments over Time ​

In Q1 2023, the number of investment rounds as well as the private funding remained relatively stable compared to Q4 2022. Notably, public funding was present in this quarter​.

Climate Tech Top Investments

* Unknown Investor

* Companies may be classified under multiple subsectors

Active Investors in Climate Tech Sector in Q1 2023

A full list of all investors with investments in Q1 can be found here.

* Top Investors are selected based on number of rounds and rounds value, including follow-on rounds.

Climate Tech Exits​

In the Climate Tech sector, only one M&A was reported in Q1 2023 with a very low value of $18M.

Moreover, there have been no IPOs reported in 2023 to date, following just one IPO in 2022, which came after a record-setting 17 IPOs in 2021.​

Learn more about our activities

This report was composed by Yariv Lotan, VP of Digital Products, Development and Data, and Einat Ben-Ari, Head of Data and BI | hello@sncentral.org


Start-Up Nation Central is a non-profit organization that connects Israeli innovation to the world to help international entities solve global challenges. Inspired by the book Start-Up Nation and immersed in the Israeli technology ecosystem, we provide a platform that nurtures business growth and generates partnerships to strengthen Israel’s economy and society.

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Methodology Notes​

  • The report is based on SNC FINDER database

  • It is a snapshot of Q1 2023 activity as of April 16, 2023.​

  • Q1 2023 figures might further revise in the future as the activity in this quarter continues to be revealed. In particular, funding rounds in early-stage startups are usually published with a delay.​

  • The definition for companies and investors can be found in the FINDER Glossary under the terms “Companies” and “Investors”, respectively.​

  • The report includes only companies that are classified as Climate Tech. ​

  • Companies may be classified into multiple Climate Tech subsectors.​

  • Active Investors are defined as investors with at least 3 investment rounds since 2021.​

  • Investments Types included: Pre Seed, Seed, A, B, C, D, E, F, G Rounds, Convertible Debt, Post-IPO Equity Funding, Private Equity, Undisclosed Round. Excluded: Crowdfunding, Equity Crowdfunding , Debt Financing and Grants.​

  • The Climate Tech Sector classification used in this report was developed by Start-Up Nation Central. You can read more about the methodology here.​

  • Links are dynamic and provide current snapshots, so the results might not exactly match the figures in the report.


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