Investment in energy start-up and scale-up companies has grown from €10bn in the four years leading up to 2020 to over €40bn between 2021 and 2024, according to LCP Delta’s Follow the Money Dashboard, which leverages data from Dealroom.co.
The US leads globally, with €16bn funding for 55 firms. In Europe, the UK tops the list, with 109 companies collectively securing €9bn in funding. Germany (€7bn) comes second, followed by the Netherlands (€3bn), and Sweden (€2bn).
EVs and solar are particularly popular with investors, securing significant funding. Although only nine EV car manufacturers are in the database, which covers 500 new energy start-up and scale-up companies, they account for 30% of the total funding. Solar companies are also increasingly receiving large debt deals to support installations.
In terms of emerging areas, heating and flexibility have traditionally attracted less investment, but both are showing signs of growth. In 2024, heat pump start-ups secured two major debt financing deals. While the flexibility sector is still in its early stages, new companies continue to emerge, with 60% of start-ups in the database launched in the past year focused on flexibility.
Despite overall growth, some areas remain “untapped” such as energy supply, which includes various company types, makes up 10% of the companies but only receives 2% of the funding. Some company types within the energy supply sector, such as digital-first energy suppliers, specialised back-office software providers, and platforms facilitating peer-to-peer energy trading, have greater potential for success than others.
Commenting on the findings, LCP Delta research manager Nigel Timperley said: “As investment in new energy grows, some sectors attract significant interest while others remain underexplored. To stay competitive, it’s vital to reassess not just the heavily funded areas but also those receiving less attention, as they may offer untapped opportunities.”
