Investment in startups focused on climate solutions grows 37.9% in Brazil
Climate techs received US$2.8 billion in contributions; expert highlights that Brazilian startups have solutions that can positively transform the planet in the coming years.
According to information recently released by the financial data and software company, PitchBook, in the first quarter of 2024, climate techs — startups focused on climate solutions — received a total of US$ 2.8 billion in contributions, a growth of 37, 9% in the volume of capital invested.
According to Henrique Galvani, CEO of Arara Seed, the first equity crowdfunding platform for agribusiness startups, the increase in investments in the segment is a reflection of investors’ appetite for solutions aimed at climate change.
“Driven by US federal investment in industrial decarbonization, climate techs are quickly developing solutions that combat climate change and are also keeping an eye on the carbon market. This trend has not gone unnoticed by investors, who are increasingly aware of the planet’s need to face and reduce the changes caused by global warming”,
explains Galvani.
It is worth noting that, according to the Climate Techs Report 2024 , prepared by Dealroom, 2023 was the hottest year on record, reaching global temperatures close to the 1.5°C limit. The survey also revealed that February 2024 was the hottest month ever recorded, with an average temperature of 1.8°C above the pre-industrial era.
“The planet’s current scenario calls for, more than ever, technological solutions to mitigate the results of climate change, reduce greenhouse gas emissions and promote sustainable practices in different sectors of the economy. In this regard, given the vast amount of natural resources that can fuel the green economy, Brazil has gigantic potential to become one of the main exporters of climate technology in the world”,
says the CEO.
Innovations are welcome for the vast Brazilian territory
According to Galvani, biological diversity has a lot to be explored in a sustainable way for the production of materials and inputs such as biofuels, biofertilizers, biomaterials and pharmaceutical products. For the executive, the territorial extension and strength of Brazilian agriculture will enable a strong presence in the carbon market, linked to the reconstruction of deforested areas and degraded pastures.
“Our market has several startups with incredible solutions that can and should transform the planet in the coming years. As an example, we can mention Umgrauemeio , which developed Pantera, a platform to translate the fundamentals of firefighting into technological solutions, allowing the instant identification of smoke and human activities close to forest areas and plantations”,
exposes Galvani.
Another example of Brazilian climate tech that has caught the attention of investors is Agroforestry Carbon , an agtech that develops agroforestry projects with small farmers for voluntary carbon offsetting. With an investment round underway by Arara Seed itself, the startup, which hopes to raise a total of R$1.6 million, has already contributed to financing the planting of more than 280,000 trees, which were mapped using geotechnology.
For the CEO of Arara Seed, increasing investment in startups that offer climate solutions is not only necessary, but also a profitable opportunity for investors.
“The climate tech market is destined to expand more and more. The increasing frequency of climate disasters and the pressure for the adoption of sustainable solutions by society, governments and companies will further drive investment. The carbon market, in particular, offers a significant opportunity for Brazil, which can transform carbon credits into a profitable source of revenue, contributing to a greener and more sustainable economy,”
concludes Galvani.
With information and images from Arara Seed
