4 key insights into female founders and climate tech funding

In this article we have analysed the gender specific data from our recent research report ‘State of Climate Tech 2024’ which encompasses over 12,000 startups, 52,000 deals and over $600bn in investment. This article looks at the overall situation for women founders, key trends, sector focuses and areas of growth.

In the first nine months of 2024, solo female founders in the climate tech sector secured only 5.28% of total deals and an even smaller 1.14% of total funding. In contrast, male-only founders received 91.56% of the total funding raised in this period. Our analysis shows that this disparity has remained relatively unchanged over the past five years and is reflective of the overall finding that women only founders receive only 2% of VC funding globally. Interestingly, in this sector women founders are more likely to fundraise as part of mixed gender founding teams. Analysis of mixed gender founding team deals shows that they constitute 20.5% of deals and attract 7.4% of the funding. 

Proportion of deals by founder gender

Proportion of funding raised by founder gender

Whilst low throughout, solo female founders have a relatively stronger presence in early-stage funding rounds. They secured 3.79% of early-stage capital in climate tech, which is slightly higher than the general 2% of VC fundingOpens in a new window for female founders across all sectors. This trend suggests that female entrepreneurs are relatively more successful in securing initial investments. However, their share of funding is minimal in mid and late-stage deals (1.55% and <1%).

The data shows that female-founded companies in climate tech are focused on a few specific sectors. The industrial and FALU (Food, Agriculture, Land Use) sectors are the most active, each accounting for 31% of deals involving solo female founders. 

Proportion of deal count by climate sector

In terms of climate impact, over one-third of deals involving female founders have a climate adaptation focus, highlighting their commitment to developing solutions that address the impacts of climate change 

A notable trend among solo female founded companies is their involvement with start-ups working on Adaptation and Resilience (A&R) offerings. A&R businesses create products and services, such as climate insurance or urban cooling, that help with managing heat, wildfires, floods and other climate stresses. Our analysis found that nearly half of all funding raised came from start-ups in this area, compared to just 13% for male-only companies. The majority of this (41.8%) came from start-ups that are ‘cross-cutting’ - having both a climate mitigation and A&R impact. Part of the reason that A&R features so prominently is perhaps down to the FALU-sector prominence within female-founder companies, with FALU representing over 40% of all A&R deals within climate tech. Whatever the case, this focus does indicate that female founders are taking a relatively broader approach to addressing climate challenges, when compared to male founders, with over 1/3rd of mixed-gender founder fundraising also coming from start-ups with A&R offerings. 

Proportion of deals by impact area

Proportion of funding by impact area

In conclusion, solo female founders in climate tech face significant challenges when fundraising, and sadly the data shows that this situation isn’t improving. However, there are clearly female-specific trends within climate tech, with relatively greater focus on key sectors like Industrial and FALU, and cross-cutting solutions being some of them. As our previous research with female founders and investors shows it is essential to advocate for policies and initiatives that support female entrepreneurs, particularly in a sector where their voices and innovations are integral in the fight against climate change.