The venture capital landscape is evolving, with clean technology now at its core. While Europe has traditionally led climate-conscious investing, the United States is quickly gaining ground—thanks to bold policy moves like the 2020 Inflation Reduction Act (IRA). This legislation has sparked a wave of clean-tech investments, positioning the U.S. as a global leader in the sector.
In 2023, a major shift occurred in global venture capital flows. Amid political and economic uncertainty in Europe, many investors began exploring new markets. Rajat Khare, founder of Luxembourg-based VC firm Boundary Holding, has been closely tracking this trend. He observes that the U.S. clean-tech ecosystem is attracting significant interest due to its innovation potential and government backing.
The IRA’s $370 billion commitment to climate action and clean energy has played a crucial role in this momentum. As a result, the U.S. has become the top destination for clean-tech venture capital, even surpassing Europe and China. Rapid growth is evident in sectors like electric vehicles, green hydrogen, and battery technology. With its robust funding environment and policy support, the U.S. is quickly emerging as the world’s leading hub for clean energy innovation and sustainable investment.
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