What the numbers say: Global clean energy startups secured $2.8B in VC funding in Q1 2023, down 40.3% YoY. Quarterly totals declined 23.9% QoQ from Q4 2022's tally of $3.7B. Deal count fell 6.8% QoQ and 29.2% YoY to 138 in the first three months of the year. Relevance: Within the clean energy sector, the intermittent renewable energy sources segment raked in the largest share of funding at $1.3B — up 52% QoQ — followed by the grid infrastructure segment at $674M. Funding for clean fuels increased slightly, unlike dispatchable energy sources, which saw a decline in deal values. Where to see the impact: Solar photovoltaic startups nabbed four of the five largest rounds. Notable funding rounds in the quarter include solar photovoltaic technology startups HuaSun Energy's $291.1M Series B and Enpal's $228.4M Series D rounds. Despite the drop in funding, investors are optimistic about the sector's potential, primarily due to the incentives available under the Inflation Reduction Act and the worldwide trend to reduce dependency on Chinese manufacturers. |
