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Tenity VC’s Climate Fintech 2024 report highlights Estonia as a global leader in climate fintech, showcasing remarkable growth, innovation and resilience in a rapidly evolving sector. The report reveals Estonia’s exceptional performance, with the country leading on several key indicators, including the number of climate fintechs per capita and the rate of female founders.
For the third year in a row, Tenity analyzed a comprehensive database of more than 750 innovative startups, providing global insights into funding, founder demographics and market trends. The 2024 edition specifically highlights Estonia’s dynamic contributions to climate fintech, highlighting the country’s success in promoting sustainable financial solutions.
Estonia Key findings from the Tenity Climate Fintech 2024 report:
Estonia Funding Overvoltage: Estonia saw a sharp 24% increase in funding for climate fintech startups in 2023 compared to 2022, defying the global trend of a 23% decline in funding. This impressive growth highlights Estonia’s commitment to driving innovation and sustainability in fintech.
Founding female leadership: Estonia ranks first globally for female founders in climate fintech, with 44% of startups having at least one female co-founder. This figure puts Estonia ahead of other leading markets like Canada (43%) and the UK (42%), highlighting its commitment to gender diversity and inclusion in the technology sectors and innovation.
Top in the world for climate Fintechs per capita: Estonia leads the world in terms of climate fintechs per million inhabitants, with 11.8 startups in this category. This statistic highlights the country’s emphasis on sustainable financial technology.
Strength of digital investment solutions and carbon offset markets and credits: Estonia excels in digital investment solutions and carbon offset markets and credits, with many startups overlapping in both categories. This strength is also reflected in the distribution of funding, since the majority of investments are directed towards these areas. In contrast, ESG data and analytics solutions are underperforming in Estonia compared to global trends.
A growing but less mature ecosystem: The Estonian climate fintech ecosystem is still in the early stages of development compared to markets like the UK, with the majority of Estonian climate fintech companies founded between 2020 and 2022. Only 6.25% of climate fintechs Estonians are at the Series A growth stage, while the UK has 27.44% of its companies at this stage, which is reflected in the higher average funding rounds in the UK.
Commenting on the results, Uve PoomTallinn Hub Operations Manager, said: “Estonia’s performance in this year’s Tenity Climate Fintech report highlights our country’s commitment to fostering innovation in fintech, particularly in areas that drive sustainability and climate action. Our remarkable funding growth and high rate of female founders are testament to the vibrant and inclusive ecosystem we are building in Estonia.
Tenity is the leading global early-stage innovation and venture ecosystem with offices in Zurich, Singapore, Tallinn, Madrid, London and Istanbul. Tenity’s vision is to accelerate the future of finance by bringing together ambitious founders with leading companies, investors and mentors. Today, Tenity has six hubs, runs corporate innovation programs in more than 15 countries, has worked with more than 65 corporate partners, and supported more than 1,600 startups through its programs.
Go to the Tenity website to view the full report.
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