The venture capital (VC) sector stands out as an opportunity for clean tech. Traditionally, Europe has been a hub for climate-sensitive investments, but the US is now emerging as a key player. The US clean energy sector, backed by policies like the 2020 Inflation Reduction Act (IRA), is attracting record levels of VC funding. This influx of capital forces investors to assess the opportunities and risks of this market.In 2023, Europe’s venture capital funding declined due to various factors, including political instability and economic upheaval. As a result, investors began reassessing their strategies. Rajat Khare, founder and CEO of Boundary Holding, a Luxembourg-based VC firm specializing in deep tech startups, observed this trend. According to Khare, Europe’s investment strategy is now rivaled by the growing opportunities in the US clean-tech sector.
