Climate tech startups are facing an uphill battle to secure much-needed funding due to the global financial climate pivoting away from riskier investments. This shift has made it increasingly difficult for innovative startups to fund their research and development, threatening their initial stages and scaling-up capabilities.
Recognized for its support of European climate tech, World Fund has gathered a 300 million euros venture fund to buoy these beleaguered startups. The fund aims at bolstering innovative and eco-friendly tech businesses affected by the present economic climate, providing necessary financial backing to keep them functional and on track with their development of sustainable technologies.
Factors, such as an increase in inflation and interest rates triggered by the 2022 Russia-Ukraine war, have schemed to decrease investor sentiment towards the tech sector.
World Fund’s financial boost for climate startups
This has subsequently prompted many investors to look for safer investments, exacerbating capital drain from emerging economies, widening economic disparities, and increasing global economic unease.
Meanwhile, World Fund’s primary goal with its venture fund is to shepherd startups through the notorious ‘valley of death’ phase – a stage identified by funding deprivation that can drastically limit their growth potential. World Fund’s crucial financial aid provides these startups not only with survival means but also opportunities to prosper during such a precarious phase.
Despite complications from the Ukraine war aftermath and the 2023 Silicon Valley Bank collapse, World Fund, with its consistent performance, has successfully managed to raise capital. Boosting this success was their strategic plan to switch focus towards stable sectors like technology and finance, attracting substantial investments, and a new EU investment regulation favoring global funds.
World Fund’s Founding partner, Danijel Višević, acknowledges the challenges of the present circumstances but strongly believes in the resilience and adaptability of the tech industry. He remains optimistic about the future of tech stocks, asserting that the current downturn is temporary, and anticipates a robust rebound in the near future.
