The Climatetech Edition Global Startup Ecosystem Report by Startup Genome and the Global Entrepreneurship Network was presented at COP28 in Dubai. The report explores the potential of cleantech and the blue economy, examining the current state of startup activity and associated investments in these sectors, and a ranking that reflects which global ecosystems are currently driving innovation. The report is a special edition that examines both cleantech and the blue economy, two sub-sectors of tech startups that are closely interconnected but with unique characteristics. Cleantech refers to sustainable solutions in the energy, water, transportation, agriculture, and manufacturing sectors that include advanced materials, smart grids, water treatment, efficient energy storage, and distributed energy systems. The blue economy is defined as the sustainable use of ocean resources for economic growth, improving livelihoods, and creating jobs, while preserving the health of the ocean ecosystem.
Key figures for the cleantech sector
Between the first half of 2020 and the first half of 2023, Series A cleantech funding increased by 73% and Series B funding by 166%. In the second quarter of 2023, cleantech increased its share of Series A investments by 25% compared to all other tech startup sub-sectors, up from 14% in the fourth quarter of 2022. Cleantech’s share of Series B funding rose from 10% to 20% over the same period. The cleantech sector had the highest number of Series A deals between the fourth quarter of 2022 and the second quarter of 2023, compared to all sub-sectors, and the second highest number of Series B deals (after artificial intelligence and big data). Despite the global decline in VC funding, cleantech Series A funding increased by 15% in absolute terms between the fourth quarter of 2022 and the second quarter of 2023, the largest increase among all sub-sectors. 
Thanks to strong investments in 2022, Europe leads all regions in terms of share of Series A funding between the first half of 2020 and the first half of 2023. Silicon Valley and London are the world’s leading cleantech ecosystems, ranking first and second, respectively. Amsterdam moved from 7th place in 2021 to 3rd, with the highest number of cleantech startups in Europe outside of London. Singapore moved up 18 places from No. 26 to no. 8, and is the only Asian ecosystem in the top 10. Seoul made its first appearance in the cleantech ranking, ranked 15th. Two new Chinese ecosystems also made it into the cleantech ranking: Wuxi in 19th place and Hangzhou in 22nd place. In the MENA region, early-stage cleantech funding increased by 56% in 2022 compared to 2018.
The main data related to the blue economy
Europe has overtaken North America in the share of Series A funding for the blue economy. In the first half of 2023, Series A funding in the blue economy increased by 31% compared to the first half of 2021. The average Series A transactions in the blue economy increased by 40% from the first half of 2021 to the first half of 2023. Singapore remains the world’s leading startup ecosystem for the blue economy due to the high number of relevant startups and strong university support for blue economy innovation. North America is home to 10 of the top 25 blue economy ecosystems, including 8 in the United States. 
iXblue’s $407 million exit helped lift Paris from 22nd to 11th place in the rankings. Western Denmark, Helsinki, Houston and Hong Kong entered the top 25 for the first time, while four countries each have two ecosystems in the top 25: Canada, Denmark, Germany and the United Kingdom. “Entrepreneurs must be first on the front foot of one of the world’s most pressing challenges, and this report is a testament to our commitment to driving cleantech and blue economy innovation,” JF Gauthier, founder and CEO of Startup Genome, said in a statement. “We need to increase the supply of innovators – from universities, labs, incubators and garages around the world – and we need to accelerate innovation, we need to connect them with business partners and governments who can scale these innovations to have a sustainable global impact,” says Todd Allmendinger, director of consulting and research, Cleantech Group The report made in partnership with Canada’s Ocean Supercluster, Cleantech Group, La Zone Bleue and Mississippi Development Authority can be consulted at this link.
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