European solar seed funding to reach $6 billion in first five months of 2023



Total investments in European start-ups in the solar electricity industry grew by almost 400% year-on-year in January-May. According to data from Avent Abacus, companies received $6 billion in new funding, compared to just $1.2 billion raised in the same period in 2022.

Avnet Abacus, which consults engineers on new product designs, analyzed Crunchbase data for companies listed in the solar and other renewable energy categories to get an idea of ​​the level of funding in those sectors. It found that investment has increased by 47 percent globally, and funding for the sector in the United States has decreased by 7 percent this year.

Despite continued uncertainty in the venture capital market, average investment in European solar is at an all-time high of $166.1 million, up from an average of $88.3 million in 2022 and $22.9 million in 2021. The average amount of venture capital flowing into European solar so far this year eclipsing the industry’s global average of $116.8 million and US average of $113.8 million.

“Even though solar technology is relatively mature, there is still a lot of room for growth and innovation. Demand is growing all over the world, and government policies and incentives continue to support investment in this area, and engineers are constantly looking for new ways to make solar energy more efficient,” said Sara Ghaemi, CTO of Avnet Abacus.

According to Avnet Abacus, there are almost six times more startups focused on solar than wind power in Europe, and the consumer market is behind the growth. According to SolarPower Europe, rooftop installations accounted for 66 percent of the EU’s solar energy capacity at the end of 2022. Amid the slower-than-expected growth of large-scale solar power, the overall share of rooftop electricity is expected to drop to only slightly 59 percent by 2026.

Driven by the rise in electricity prices, interest in solar energy has grown exponentially. In Europe in particular, a growing number of companies serving the residential sector and in some cases the commercial solar segment have raised capital from several types of investors, particularly those that are lighter, more aesthetic or easier to install on the roof. PV models.

In addition, the complexity of solutions has increased over the years, and startups now offer services and a software layer on top of it. One such example is Hamburg-based 1Komma5°, which raised €430 million in a Series B round last week, helping it become Germany’s latest unicorn, valued at more than €1 billion ($1.09 billion) in just 23 months. .

David is a passionate writer and researcher who specializes in solar energy. He has a strong background in engineering and environmental science, which gives him a deep understanding of the science behind solar power and its benefits. David writes about the latest developments in solar technology and provides practical advice for homeowners and businesses who are interested in switching to solar.

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