Danish startup Klimate is the top ranked climate tech company in this year’s Sifted 250 — a ranking of the 250 fastest-growing tech companies in Europe by revenue. The company boasts a compound annual growth rate (CAGR) in revenue of 645% across the last two years.
Klimate, which was founded in 2021, supplies companies with carbon removal credits, which are equivalent to a certain number of emissions removed from the atmosphere.
It partners with carbon removal suppliers using a number of methods, including biochar, direct air capture and enhanced rock weathering. Klimate then helps companies to document the impact of their removals, particularly under the European Union’s Corporate Sustainability Reporting Directive (CSRD). It has raised $4.2m in total, from investors including Antler and Rockstart.
Klimate tops the list of climate techs in a rocky year for the carbon removal industry: it’s been dogged by reports that credits aren’t as impactful as they’re portrayed.
Klimate’s cofounder and COO Mads Emil Dalsgaard says the scepticism over the industry has helped Klimate to differentiate itself as scientifically rigorous.
“Some of these bad actors harm the reputation of the whole industry but, at the same time, quite a lot of the clients come to us because they are afraid of greenwashing, and they are afraid of getting it wrong,” he says. “For us, it’s been a driver of growth.”
The second fastest-growing climate tech on Sifted’s list is Swedish startup Flower, which runs a platform to manage energy grid infrastructure. Flower, which raised a €45m Series A in October this year, has a CAGR of 497%. Its investors include Giant Ventures and Northzone.
Startups are listed in order of highest compound annual growth rate (CAGR) in revenue over a three-year period.
10 fastest-growing climate techs in 2024
1. Klimate
HQ: Denmark
CAGR: 645.36%
What it does: Klimate provides carbon removal credits to companies
2. Flower
HQ: Sweden
CAGR: 497.61%
What it does: Flower runs a platform to help manage energy grid infrastructure
3. Dynelectro
HQ: Denmark
CAGR: 395.02%
What it does: Dynelectro produces green hydrogen
4. Ringy
HQ: Estonia
CAGR: 332.28%
What it does: A circular economy platform for refurbishment companies
5. Neustark
HQ: Switzerland
CAGR: 270.93%
What it does: Captures carbon and stores it in waste concrete
6. Earthbanc
HQ: Sweden
CAGR: 244.71%
What it does: Carbon removal via agroforestry
7. Woltair
HQ: Czech Republic
CAGR: 243.81%
What it does: A solar panel and heat pump provider
8. Vok Bikes
HQ: Estonia
CAGR: 240.08%
What it does: Produces electric bikes for cargo transport
9. Skyfri
HQ: Norway
CAGR: 239.93%
What it does: Provides software to manage solar energy and storage assets
10. Tapio
HQ: Belgium
CAGR: 227.97%
What it does: Carbon management software
Sifted 250 methodology
Sifted’s research team used proprietary data and company registries to identify high-growth startups. Applications were accepted from February 1 to November 15.
To be eligible, companies had to meet the following criteria: headquartered in Europe (excluding Azerbaijan, Belarus, Israel, Russia and Turkey); founded in or after 2014; maximum headcount of 999; private and independent; majority of revenue must be generated by proprietary technology; at least three years of revenue data; and revenue (annualised if necessary) of at least €50k in the base year (2020 or 2021) and at least €500k in the latest financial year (2022 or 2023).
Companies were required to submit signed documentation to support disclosed financial information not publicly available.
The full list of climate techs on the Sifted 250:
Read the orginal article: https://sifted.eu/articles/fastest-growing-climate-tech-revenue/
