2024 Energy VC Activity Maintains Growth Trends, Underscoring Sector’s Resilience, Innovation amid Uncertainty

In addition to compelling data analyzing VC dealmaking, exit trends and oil and gas investment dynamics, the report features a conversation with Pillsbury partners Elina Teplinsky (Energy) and Matt Kirmayer (Corporate), along with counsel Margarita Kelrikh (Emerging Companies & Venture Capital). Their discussion covers the key factors driving dealmaking momentum in the industry, challenges and opportunities for stakeholders amid shifting market dynamics and why energy-oriented technology startups are well-positioned for continued near-term growth.

“Trends in Silicon Valley are now intersecting with what has been happening in the energy sector,” Kelrikh notes in the analysis. “There’s a realization that solving the energy demand problem means there needs to be investment in technologies that improve existing fossil fuel infrastructure.”

Among other insights, the report finds investors are continuing to support early-stage startups focused on next-generation technologies, while nontraditional investors (NTIs) are pushing to stay ahead of technological advancements to maintain long-term competitiveness in the growing energy market.

“Investors know that developing new technologies is essential to creating stability and keeping up with demand, and that gives them a level of confidence in the market,” Teplinsky added.

The report’s key findings include:

• Startups in the energy innovation space raised $16.6 billion in venture funding across 933 deals in 2024.
• Mature company valuations in the sector reached all-time highs in 2024: median late-stage and venture-growth pre-money valuations reached $42.3 million, their highest levels in a decade, and venture-growth pre-money valuations reached $90 million for the first time since 2017.
• Early-stage energy investments showed growth as well, with pre-seed/seed and early-stage deals comprising 62.8% of global VC deal volume, up from 59.8% in 2023.

• Late-stage and venture-growth deals accounted for fewer than half of global energy VC transactions but more than 60% of deal value in 2024, consistent with historical trends.

• Nontraditional investors—CVC, PE and other crossover investors—continue to shape energy innovation, with CVCs participating in nearly one-third of total energy deals and accounting for 59.6% of total capital invested.
• Due in part to its renewable-friendly policies, the EU led global energy deal activity with 324 transactions, surpassing North America’s 305 and Asia’s 247.

• While median deal values and valuations have slightly moderated, they still exceed pre-2021 levels, reflecting confidence in the sector’s long-term potential and the importance of emerging technologies for energy security, efficiency and sustainability.
• Investments flowed into both new primary energy sources—such as geothermal, nuclear and hydrogen—and legacy energy infrastructure improvements, including smart grid technologies.

Even amid uncertainty in the broader capital markets and evolving geopolitical and regulatory conditions, there are positive indicators to be found in the energy innovation space, Kirmayer notes in the report’s authoritative commentary.

“The notion of ideation simply does not go away,” he said. “Volume decreases in a downturn and criteria for investing get tougher, but even in the biggest slumps, the reality is that there’s money being deployed. Innovation is not being stifled.”

The analysis featured in New Energy Technologies: Investment & Innovation Trends is based on Pitchbook’s proprietary data methodology, along with Pillsbury’s extensive experience counseling startups and investors in the energy industry.

Click here to view the full report.

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