Energy tech start-ups find it nearly 200% harder to move to development than tech startups in other sectors.
That’s according to a new report by Harwell and Tech Nation which suggests nearly half of UK energy tech companies are still at the seed stage.
At that stage, entrepreneurs approach investors to find financial support for their product or service.
The analysis shows that in the UK, energy tech investment has increased from $1.1 billion (£810m) in 2020 to $1.5 billion (£1.1bn) in 2021, a rise of 36%.
However, experts at Harwell Science and Innovation Campus are calling for an increase in later-stage investment and clustering to boost the confidence of investors towards green long-term projects.
Gerard Grech, Founding Chief Executive Officer of Tech Nation, said: “It’s crucial that we continue to systematically improve the UK’s innovation environment to enable more clean energy companies to thrive.
“Failure to secure later-stage investment is too common for scaling energy tech companies because of the inherent complexity of moving advances from the lab into the energy grid.
“More multi-sector and multi-disciplinary working and coordination is crucial to support this burgeoning sector and will be crucial to the UK achieving net zero by 2050.”