Net Zero companies are organizations who reach a balance between emissions produced due to their activities and those emissions they remove from the atmosphere.
Achieving a net zero emissions state is similar to maintaining the water level of a bathtub with the tap fully on and its drain open.
Therefore, a company achieves a net-zero state by first reducing to the minimum its carbon sources. Then, the organization can balance out the remaining emissions by investing in projects that remove emissions (carbon sinks).
It makes business sense
Achieving net-zero emissions is not only the right thing to do to save the planet, it also
reduces climate risks, reduces costs and attracts ESG investors and talent.
UK punching above its weight
A recent report by Technation highlights the progress UK Net-Zero companies are making, accounting for just under 20% of all companies in the ecosystem.
Of the 4,718 Net Zero Scaleups identified by Dealroom, 2,918 are headquartered in Europe of which 552 are headquartered in the United Kingdom. In other words, UK Net Zero scaleups make up 18.9% of the European Net Zero Ecosystem and 11.7% of the global ecosystem.
UK Net Zero firms have raised over $1.5bn in 2021, putting the UK second to just Sweden in terms of European investment into climate change catalysts. We have witnessed a ‘COP pop’ in VC investment in recent weeks, with around $60mn invested in October alone.
Net Zero tech firms now account for just under 70% of all impact tech investment in the UK, and have nearly doubled in value over the last year from $24.4bn to $47.6bn.
Nearly 50% of UK Net Zero companies are operating in the Energy industry.
Technation predicts a 10x increase on 2021 investment levels into UK Net Zero firms from VC and PE firms by 2025
London is dominating the UK Net Zero investment landscape, accounting for 72% of all VC investment made into Net Zero firms in 2021 so far
The geographical distribution of companies is concentrated in London, with 46% (252) firms headquartered in the capital.
Of the 137 applicants to Technation’s Net Zero 2.0 programme 21.9% identified that funding was one of their biggest obstacles to growth.
Why using a partner like Infintec is worth considering
Identifying and accessing the right growth funding is not easy on your own – it requires time and expertise.
More often than not, getting the finance in place to continue with the R&D road map and start to generate growth is the starter for ten.
But, in order to be successful in getting the right funding, an attractive, yet realistic growth plan needs to be created which will convince lenders that the business has legs. That again is where Infintec’s commercial expertise can really add value – we know how to spot opportunities and exploit them.
We also know how to present ‘digital’ solutions to lenders – not get lost in too much ‘tech speak’. This, combined with our knowledge of the funding options, generally gets our clients the funding they need.
Our Fast-track, Paid-on-Results method of working minimises your risk and time commitment.
Why not contact us for an exploratory chat