Climate VC fundraising is on track for its worst year since 2015. That’s the best thing that could happen to climate tech

In 2019, the Three Mile Island nuclear power plant shut down its Unit 1 reactor due to economic competitiveness issues. Microsoft subsequently signed a 20-year agreement to purchase its power, leading to the plant's revival as the Crane Clean Energy Center. The shift in ownership illustrates how climate-specialist venture funds are facing their weakest fundraising year since 2015, with less than $1 billion raised, compared to over $10 billion in 2021, according to PitchBook.

However, the investments in clean energy startups have hit a three-year high in 2025. Notably, venture and growth investments in clean energy startups have surged, with companies like Fervo Energy raising $2.2 billion through its May IPO and signing a new power deal with Google. Dawn Lippert of Earthshot Ventures mentioned that 90 percent of the companies backed by her fund involve generalist tech investors.

The trend suggests that companies prioritize utility and performance over labeling themselves as "climate tech." Similar to the transition from "internet companies," climate technologies may become integral to businesses, making the distinction between climate tech and other tech increasingly irrelevant.