News Post

As megarounds become rarer, energy startups are powering up

TechCrunch

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Despite the slowdown in venture capital funding for most startups, the energy sector continues to attract significant investment. According to data from Crunchbase, the number of megarounds (funding rounds of $100 million or more) in the energy sector remained relatively stable from the first two months of 2023 to the same period in 2024. However, the share of energy-focused megarounds among all nine-figure deals increased from under 10% to 16%. This shift is significant considering the competitive landscape dominated by China's strong presence in solar panels and battery materials. In 2024, investment in the energy sector has become more geographically diverse, with the US and EU gaining prominence. Moreover, a wider range of technologies are receiving funding, including geothermal energy, industrial heat, battery recycling, and more. This trend indicates that many energy startups are progressing from early-stage research to commercialization, and investors are confident in their potential for future success. Nevertheless, given the urgent need to address climate change, greater investment and faster progress are still necessary.