Impact Investments are Here to Stay
Impact investing is witnessing impressive global growth, with a projected Compound Annual Growth Rate (CAGR) of 15.1% from 2023 to 2028. This trend highlights a significant change in financial priorities, as investors increasingly align their portfolios with socially and environmentally responsible initiatives. The sectors propelling this growth include education, healthcare, housing, agriculture, access to clean energy, climate change, and other transformative areas.
Organizations and initiatives within the impact investing ecosystem are effectively tackling global challenges by using capital to achieve measurable social and environmental outcomes alongside financial returns. This approach is applied across large, medium, and small enterprises. It fosters innovation, empowers underserved communities, and catalyzes sustainable development worldwide.
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Turning Challenges into Growth
The data highlights Europe’s strategic pivot toward high-impact sectors in 2023. Education rebounded with 84.57% growth after a sharp decline in 2022, driven by investments in digital and accessible learning solutions. Mobility’s recovery (61.73%) reflects the urgency of sustainable transport innovations amid rising climate concerns, while CleanTech’s steady growth (50.17%) underscores its role in energy transition efforts.
Agrifood (39.03%) and BioTech & Science (37.85%) demonstrate rising focus on sustainable food systems and advanced healthcare solutions, respectively. These shifts reveal Europe’s adaptability and commitment to addressing pressing global challenges through strategic investment and innovation.
Most Promising Impact Startups from Europe
Dioxycle
Paris-based Dioxycle, founded in 2020, has developed an innovative system that transforms carbon dioxide into valuable chemicals like ethylene, a key component in the production of textiles and plastics. In July 2023, the company secured $17 million in Series A funding, with backing from Breakthrough Energy Ventures and Lowercarbon Capital. To date, Dioxycle has raised $17 million and continues to operate from its headquarters in Paris, France.
Beyond Aero
French start-up Beyond Aero is pioneering hydrogen-powered aviation with its clean-sheet business aircraft, Beyond Aero One, set for potential entry into service by 2030. Having completed 10 successful test flights of its hydrogen-powered demonstrator. Beyond Aero stands out by focusing on an entirely new hydrogen-powered design, addressing challenges like tank placement and cooling systems..
Oxyle
Oxyle, founded in 2020, has launched a groundbreaking, energy-efficient system to eliminate PFAS contamination. Deployed at a Swiss site, the compact system processes 10 cubic meters of water per hour, marking a major milestone in sustainable, cost-effective PFAS remediation.
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A Closer Look at Impact Meetup’s Influence in Major European Cities
Impact meetups are reshaping global networking, with cities like London leading with 72.7% of its total meetups focused on impact, followed by Berlin and Barcelona.These gatherings drive innovation and collaboration in sectors like education, clean energy, and sustainability, empowering communities to address global challenges.
Smaller hubs like Bristol and Madrid, though lower in absolute numbers, demonstrate a stronger focus on impactful events, compared to their total number of meetups reflecting their commitment to purpose-driven growth. With impact meetups comprising over 30-70% of total events in leading cities, these platforms are vital for fostering actionable strategies and driving measurable change.
Female – Founded Startups are Still a Challenge
Since 2014, VC seed funding for female-founded startups in Europe has grown significantly, rising from €145M in 2014 to a peak of €759M in 2021 and 2022. This steady growth underscores increasing recognition of the potential in women-led ventures and a shift towards more inclusive investment strategies. However, decrease in recent years highlights persistent barriers that female entrepreneurs face in accessing larger shares of funding. The main verticals of these startups are Health and Fintech.
Top Climate Adaptation and Resilience Startups in Europe
Based on stage, growth, and Dealroom signals.
Amperial Technologies
AMPERIAL Technologies, founded in 2021, is a German startup specializing in retrofit, switchable smart window films designed to enhance energy efficiency in buildings and vehicles. Their innovative technology allows users to control solar heat and light transmission with a simple switch, reducing the need for air conditioning and lighting, while also improving privacy. The films are easy to install without structural changes or grid connections, making them adaptable to various window sizes and shapes.
Ocean Ledger
Ocean Ledger, founded in 2023 combines Earth observation, field data, and AI to quantify the value of coastal ecosystems, enabling sustainable development and large-scale conservation efforts. Their geospatial platform assesses critical habitats such as mangroves, coral reefs, and seagrass beds, measuring ecosystem services like blue carbon storage and biodiversity.
SOLAQ
Solaq, founded in 2023, from Amsterdam, develops innovative Air-to-Water technology that uses solar energy to extract pure water from the air, even in arid regions, without infrastructure or waste. By providing affordable water solutions for rural communities, agriculture, and industry, Solaq offers a sustainable, efficient, and cost-effective answer to global water shortages.
Explore Impact Innovation Places Around Europe