Climate Tech’s Unique Opportunity in Non-Dilutive Funding

Through this report, Deloitte and Climate First are proud to provide an in-depth review of the advantages, challenges and importance behind grants, incentives and non-dilutive funding for Climate Tech Startups. The report includes Deloitte’s overview of funding sources, case-studies from Climate First’s companies and insights from our partners.

Non-dilutive funding (NDF) provides startups with capital without equity dilution, making it vital for sectors like climate tech, heavily reliant on R&D processes that entail longer periods of work before commercialization and reaching a Minimal Viable Product. The report explores funding mechanisms that allow companies to scale without sacrificing equity, offering insights on the scope, trends, and opportunities in NDF.

The growth of the Climate Tech Industry
The climate tech sector is expanding rapidly due to the urgent need to address the global climate crisis. Despite geopolitical changes, governments and corporations are still prioritizing decarbonization, contributing to its incorporation in industries like energy, manufacturing, transportation, agriculture and more.

However the transition to a low-carbon economy is now being driven not only by Net-Zero targets and consumer demand for sustainable products. More recently, the sector is being prompted by a need for energy and supply chain security and a focus on local manufacturing in the face of supply chain challenges.

Companies that will be able to provide solutions to these growing challenges will succeed in driving decarbonization - if they exhibit efficient and financially competitive technologies. Understanding and utilizing the opportunities presented by non-dilutive funding, will benefit founders and entrepreneurs looking to achieve these goals.

We invite you to review, share and discuss the information presented in the report, and contact Deloitte Israel’s Incentives team for more information and assistance, along with Climate First’s team for support and examining additional funding opportunities.