Investment in climate technology saw a 56% decline in Q1 2023, with every segment of the sector attracting less capital than 2021-22, according to data from investment bank DAI Magister. The volume of climate tech funding rounds in Europe fell from 384 in Q1 2022 to 132 in the same period this year. The segments of climate tech which saw the most dramatic decline in investment were industrial technology (88%), sustainable mobility (66%), energy generation (64%), and natural capital (59%). DAI Magister found that climate tech investment had remained “remarkably resilient” until the recently, with investors appearing to have “pulled back” from climate tech companies. Marc Deschamps, Climate-team Chairman at DAI Magister, said: “Rounds are still getting done but are certainly harder to navigate than 12-18 months ago, and generally require more time and effort to close, even for the most promising growth companies in Europe and the US.” This quarter, DAI Magister said climate tech financing activity “remains challenging” due to a continuation of smaller funding rounds.