Leaders.com
  • Login
  • Subscribe
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
  • Login
  • Subscribe
Venture Capital Energy Investments

Energy investments may weather recession (Photo by STEPHANE MAHE/POOL/AFP via Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Sep 27, 2022

One Surprising Sector Still Receiving Investments 

Venture capital firms are recommending climate tech as a shield from the coming recession. 

Key Details

  • With a fear of inflation, investors are starting to divert to safer assets that can weather the storm more effectively. 
  • “Typically recessions see investors fleeing to safer assets like government bonds and mature companies. And they start investing less in or even divesting from riskier assets, such as venture capital, which bets on early-stage companies fully expecting many to fail and hoping that some succeed wildly. Things are different now,” says Bloomberg. 
  • One asset that appears to be holding stable through the economic downturn will be climate investing, with the industry skyrocketing in venture capital and federal investments as major governments seek to combat climate change. 
  • Venture capital technology in climate change has increased from $1.9 billion in 2013 to $37 billion in 2021, according to Holon IQ.

Why it’s important

Climate tech investments may prove quite useful to investors who are eager to shield their portfolios from the worst effects of the recession. 

The investments may also prove helpful to the environment, jumpstarting a decades-long transition toward emissions-free energy and bringing forward-thinking investors along with it. 

“2022 is on pace to eclipse every other year in venture-capital fundraising… There’s still a very robust, potentially recession-proof, segment within climate tech for people who are trying to solve really hard problems,” says Prelude Ventures managing director Mark Cupta. 

“Investors see that funding these technologies will help avoid a hotter planet, which would have worse, long-lasting economic impacts than the short-term recession we might be about to face,” says Bloomberg. 

Backing up a bit

As we previously reported, President Joe Biden signed the Inflation Reduction Act on August 16, which set aside $370 billion in spending for climate investments. 

“The new U.S. climate bill… has plenty of incentives for solar and wind power, but also for nascent technologies, such as direct air capture and long-duration energy storage for the grid,” says Bloomberg. 

Home / News / One Surprising Sector Still Receiving Investments 
Share
FacebookTweetEmailLinkedIn

Related Stories

An Opportunity To Broaden NFL Ownership 

by Tyler Hummel Leaders Staff
Entertainment

About an hour ago

Commanders

With sports team valuations skyrocketing, NFL owners are pushing the league to loosen rules that would allow them to sell partial stakes in their teams. 

Key Details

  • The owners of every National Football League (NFL) team are meeting in Phoenix, Arizona, from March 26 to 29 for the annual league conference. 
  • Among the agenda for the event, several team owners have begun campaigning for the right to sell stakes in their franchises to private equity and other investors. 
  • This could provide a valuable source of revenue as valuations on sports franchises continue to increase, Bloomberg reports.  
  • While the agenda for the event will not entertain the proposal, this campaign could result in the issue being explored at 2024’s annual meeting.

Go deeper

FacebookTweetEmailLinkedIn

SVB Bankruptcy Stalls Startups

by Tyler Hummel Leaders Staff
Investing

4 hours ago

SVB

While SVB depositors have been promised a bailout from the Federal Reserve, the negative impact of the collapse continues to have ramifications for the market—particularly on startups. 

Key Details

  • With the planned sale of the bankrupt Silicon Valley Bank (SVB) to First Citizens BancShares, the financial world is still picking up the pieces from three weeks of chaos. 
  • The failure of one of the leading startup banks in Silicon Valley has cooled investor enthusiasm for the rest of the market, with thousands of investors pulling out of new projects.
  • 59% of venture capitalists say SVB is making fundraising more difficult, and 22% say they may not be able to raise any additional funding in 2023, The New York Times reports.

Go deeper

FacebookTweetEmailLinkedIn

Paying By the Month Is a New Trend

by Hannah Bryan Leaders Staff
Marketing and Sales

18 hours ago

subscription economy

Subscriptions are a growing part of the global economy, affecting everything from newspapers to razors to the heated seats in a vehicle. 

Key Details

  • By 2026, the global subscription e-commerce market is expected to reach $905 billion. In 2021 it was around $72.91 billion, Forbes reports. 
  • While consumers have long been used to paying subscriptions for magazines and newspapers, retail brands are now expanding—trying to use the subscription model to bring in extra revenue.
  • Subscription services work well for recurring purchases. Customers who partake in these services do not even have to remember to add items to their grocery lists. They just appear on their doorstep. 
  • After Amazon successfully introduced its subscription boxes, other businesses like BarkBox, Birchbox, and FabFitFun launched their subscription services, unleashing a flood of retailers from every sector trying to get in on the subscription model. 

Go deeper

FacebookTweetEmailLinkedIn
Sydney
Environment

19 hours ago

Australian EV Sales Finally Hit the Gas 

by Tyler Hummel Leaders Staff
The global semiconductor chip shortage has flooded into the banking sector, causing delays for new credit and debit cards
Business

19 hours ago

One Thing Delaying Credit-Card Shipments

by Savannah Young Leaders Staff
Vehicles sit for sale a used car lot on January 31, 2023 in Los Angeles, California
Business

20 hours ago

Used Car Prices Not Looking To Slow Down

by Savannah Young Leaders Staff

Recent Articles

Productivity

Mar 27, 2023

84% of Workers Are Easily Distracted—Here Are 10 Tricks to Stay Focused

Learn to improve mental performance when you can’t stay focused.

Leadership

Mar 22, 2023

Creating Loyal Employees Is About More Than Just the Paycheck

If you think simply paying your employees more will gain their loyalty, think again.

Business

Mar 20, 2023

Worried About ADHD At Work? Here’s How It Might Actually Help You

Neurodivergent people often have a high level of creativity and innovative thinking.

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com