🧭 No longer an emerging sector?

Hey there! 👋

Hope you had a great start to the New Year! Last month, we highlighted traceability’s pivotal role in decarbonization, NatureFinance’s biodiversity tool, and carbmee’s €20M funding for AI-driven carbon management solutions. This week, we’re exploring venture capital funding trends, and how the future of finance meets climate action due to the expanding growth in Climate Fintech sector, and the big global economic blind spot.

At The BIG Risk Navigator, my mission is to deliver expert insights on sustainability, climate finance, and the transformative potential of technology for risk management.

Let’s get started!

• Climate Fintech is no longer an emerging sector: Startup funding has increased for Series A/B+ and is expected to grow in 2025, with Europe leading the way.

• Net-Zero Transition, the future of finance meets climate action: 2023 saw record-breaking momentum in sustainable finance, with $670B+ in green bonds issued globally.

• Nature-Dependent Economies, why Climate Fintech must lead the charge: More than half of global GDP, around $44 trillion, is dependent on nature and its services and the World Economic Forum calls this “a global economic blind spot”.

• Case Study: 3 common reasons why tech startups struggle when expanding into new markets - cultural misalignment, regulatory hurdles, and local competition.

Before getting deep into the news, take a look at how you can engage more with the broader community of climate, fintech, and risk enthusiasts focused on inclusion.

🌏 Join events that I host, connecting sustainable startups with impact investors.

📰 Share this newsletter with a friend and stand out in executive meetings.

🖇️ Connect with me on LinkedIn for insights on managing risk, people, and planet.

🤝 Here’s more about my personal and professional journey: Watch my TEDx Talk.

🎯 Climate Fintech is no longer an emerging sector

✅ Highlights

• Climate Fintech: prioritizes investments in technologies that reduce financial risks while restoring planet and people health.

• Funding Trends: with 31% Series B+ and 26% Series A global funding, climate fintech startups surpassed $2.3B from 2023.

• Startup Categories: carbon markets, energy management, and carbon accounting lead the sector (using AI and Blockchain).

Climate Fintech is no longer an emerging sector. Startup funding has increased for Series A/B+ and is expected to grow in 2025, with Europe leading the way as per the CommerzVentures 2024 Climate Fintech report.

🎯 Net-Zero Transition, the future of finance meets climate action

✅ Highlights

• Net-Zero: is an ideal state, where the amount of greenhouse gases released into atmosphere equals the amount removed.

• Successful Transition: requires balancing energy reliability, affordability, emissions removal, and industrial competitiveness.

• Climate Fintech: can accelerate net-zero using tech for ESG reporting, transparent carbon markets, and green investments.

2023 saw record-breaking momentum in sustainable finance, with $670B+ in green bonds issued globally. Yet, as highlighted in McKinsey & Company's latest report, we face a $3.5T to $9.2T annual investment gap to achieve net-zero goals by 2050. The challenge isn’t just financial - it’s multidimensional. A successful net-zero transition requires balancing four interdependent objectives:

• Cutting emissions,

• Ensuring affordability,

• Maintaining energy reliability, and

• Safeguarding industrial competitiveness.

This is where Climate Fintech steps in. By leveraging AI, blockchain, and digital innovations, we can scale solutions that align these objectives, such as:

• Real-time ESG impact tracking,

• Transparent carbon markets, and

• Democratized access to green investments.

The net-zero transition is more than a necessity - it’s an unparalleled opportunity to innovate and collaborate.

🎯 Nature-Dependent Economies, why Climate Fintech must lead the charge

✅ Highlights 

• Global Economic Blind Spot: as per the World Economic Forum, more than half of global GDP is dependent on natural resources.

• Climate Fintech: bridges this gap at the intersection of digital innovation, nature-positive solutions, and financial incentives.

• 395 Million Jobs: can be created by 2030 with 15 transitions in 3 socio-economic systems, delivering $10 Trillion business growth.

More than half of global GDP - around $44 trillion - is dependent on nature and its services. Yet, as highlighted in the CDP Europe Report - financial institutions have been slow to address the growing risks associated with nature loss. The World Economic Forum’s New Nature Economy Report calls this oversight a “systemic risk” to both economies and businesses - a global economic blind spot.

The good news? Climate Fintech is uniquely positioned to bridge this gap by driving innovations that align nature-positive solutions with financial incentives:

• Digital platforms for biodiversity-linked loans and green bonds,

• AI-powered tools to quantify and mitigate ecosystem risks, and

• Transparent frameworks for tracking and reporting on nature-related investments.

For example, the World Economic Forum estimates that transitioning to nature-positive pathways could unlock $10.1 trillion in annual business opportunities and create 395 million jobs by 2030. This isn’t just about protecting the planet - it’s about safeguarding the future of global economies. The question isn’t whether we can afford to invest in nature, but whether we can afford not to.

🎯 3 common reasons why tech startups struggle when expanding into new markets

✅ Highlights

• Cultural misalignment

• Regulatory hurdles

• Local competition

A few years ago, I was leading a team for a top investment bank that had projects on four continents. We had one goal: How to reimagine our products and services so the local consumers would actually use it?

We were so focused on launching the business line, that we didn’t research the culture. The people. But we turned around and successfully launched the product that allowed the local consumer to have access to their bank accounts 24x7.

Read my case study.

🌏 Join events that I host, connecting sustainable startups with impact investors.

📰 Share this newsletter with a friend and stand out in executive meetings.

🖇️ Connect with me on LinkedIn for insights on managing risk, people, and planet.

🤝 Here’s more about my personal and professional journey: Watch my TEDx Talk.