Margret Trilli, CEO of ImpactAssets, managing $3.5 billion and making over 250 investments annually, … [+]
According to Sightline Climate, the amount of new capital for climate tech investing climbed globally in 2024 despite the expected policy shifts in the U.S. which have now materialized. Climate funds added $47 billion in assets under management, a 20% bump on the previous year. While much of the uptick was driven by larger institutional investors like TPG Inc and Brookfield Corp, early-stage climate investors continue to play a pivotal role in financing cutting-edge innovations and pioneers.
Investing in early-stage climate startups presents both immense opportunities and unique challenges. Unlike software or consumer tech startups, climate tech ventures often involve hardware innovations, deep science breakthroughs and regulatory complexities that make them capital-intensive and mean they require longer time horizons to scale. Technologies such as climate finance, direct air capture, next-generation batteries, carbon-free cement and alternative proteins are just a few areas attracting significant early-stage capital. I met with five of the most active early-stage climate tech investors to hear what they are looking for and why now is an exciting time to be an investor in climate startups.
ImpactAssets
Margret Trilli leads ImpactAssets, an impact investing firm managing $3.5 billion and conducting 250 to 350 private market investments annually. When evaluating investments, she seeks companies that align with her firm’s impact-driven thesis while demonstrating financial viability. She emphasizes market fit, execution capability and realistic modeling over flashy projections. Climate solutions, particularly energy innovation and natural solutions, are a significant focus. For Trilli, this is a prime moment for investors in climate and impact investing, as market demand for sustainable solutions continues to rise. With institutional investors, corporations and family offices increasing their commitment to impact investments, the sector is maturing into a mainstream financial category.
Climate Capital
Michael Luciani co-founded Climate Capital, a syndicate of 3,000 angel investors actively funding early-stage climate tech companies. Climate Capital’s investment focus spans all climate verticals, with a dedicated seed fund plus a climate biotech fund Juniper, led by Luciani, which specializes in bioindustrial solutions. Luciani prioritizes startups that offer transformative climate solutions with strong commercialization potential. He believes this is an optimal time for climate investing due to reduced competition and clearer market pathways. With the urgency of the energy transition and a growing investor appetite for scalable, impact-driven solutions, Luciani sees massive upside potential in the space.
Collaborative Fund
Sophie Bakalar’s investment strategy at Collaborative Fund centers on backing companies that are mission-driven while offering a superior product without requiring customers to make sacrifices. She applies the “villain test”—ensuring that even those indifferent to sustainability would still choose the product for its value alone. The firm has raised multiple funds, recently launching a $125 million vehicle. Bakalar believes this is a golden era for climate tech investment due to the convergence of technological breakthroughs, rising consumer demand and large-scale capital inflows into energy transition and sustainability.
Impact Science Ventures
Robert Ethier at Impact Science Ventures takes a pragmatic approach, seeking companies that can compete purely on cost and quality, independent of government incentives. He sees post-hype cycles as the best time to invest, as weaker competitors exit and stronger companies emerge with better access to talent, customers and capital. He views the current downturn in ESG hype as a cleansing phase, eliminating unsustainable business models while strengthening those with robust fundamentals. Despite shifts in government policy he remains optimistic, citing fundamental economics, animal spirits and private capital as key drivers in maintaining momentum for sustainable investments.
Street Life Ventures
Laura Fox runs Street Life Ventures, a fund investing in pre-seed and seed-stage B2B startups at the intersection of cities and climate. Their investment framework prioritizes companies solving major pain points with beta-stage products that have completed initial pilots. Rather than relying on government incentives, they back businesses that thrive on market-driven economics, particularly in urban industrial decarbonization in sectors like built environment, mobility, and energy. Fox sees now as an exceptional time to invest in climate solutions, even amid political shifts. She highlights that renewable energy adoption doubled during the previous Trump administration, driven purely by economics. Meanwhile, over 100 U.S. cities have committed to net-zero targets, creating long-term policy momentum. With the growing urgency of climate adaptation and the rise of localized sustainability initiatives, she believes this is a “hardware renaissance” moment, making climate tech investments more resilient and essential than ever.
While climate investing is still evolving, the sector’s momentum is undeniable. Governments worldwide are setting ambitious net zero targets, corporations are prioritizing sustainability and investors are recognizing the financial and impact-driven potential of climate tech. As early-stage climate investors continue to back breakthrough innovations, they are not just placing bets on the future of clean technology—they are actively shaping the next industrial revolution.
More like this on Forbes: Five Environmental Startups Leading The Way In 2025 and Top Four Clean Mobility Startups Shaping 2025.
Follow Holloman for insights on sustainable finance and technology
