The latest research from Tenity Climate Fintech highlights a positive trend in funding for climate fintech businesses, contrasting the overall pessimism surrounding fintech financing in 2022.
The Tenity Climate Fintech research indicated that, despite the pessimism surrounding fintech financing in 2022, climate fintech businesses were an exception to this trend, with funding rising globally. The fintech innovation network Tenity (previously F10) examined data from 607 businesses and discovered that Europe received the greatest funding for climate-related projects.
Every region experienced accelerated funding, according to the Climate Fintech report. LatAm and APAC received less capital than other investment areas, but even so, it was still a significant amount. While Europe raised slightly under $1 billion, North America raised $640 million.
The regulatory field of environmental, social, and governance (ESG) has grown significantly in recent years. Due to the importance that consumers place on this, more entrepreneurs are designing their products with ESG in mind. The research claims that there are now 72 businesses offering services related to digital assets, up from 46 previously. Additionally, 225 startups identify as ESG data and analytics solutions overall.
The Tenity research notes a rise in female founders as well. A woman is the CEO or co-founder of more than one-third of all climatefintech companies. This percentage is 37% for firms formed between 2019 and 2022 compared to 35% for startups founded three years ago (from 2016 to 2018).
Co-founder and CEO of Tenity, Andreas Iten, commented on the findings, saying: “There is growing pressure on both businesses and governments to strengthen their sustainability commitments in response to increased expectations for environmental action. The role of climate fintech is now more crucial than ever because of the various use-cases and applications as well as its growing importance in the financial markets. Tenity is in a good position to support this expansion.