This inaugural edition of the Sustainable Chemistry Investment Report offers real-time insights into the innovation ecosystem supporting the commercialization of products and services that deliver high performance without harm to people or the planet. Trends can be identified to monitor, evaluate, and help position startups and investors alike for optimum benefit. However, tracking investment in sustainable chemistry presents unique challenges. Unlike Carbon Tech or Climate Tech, which are typically categorized by application, Sustainable Chemistry is defined by the intentional design of technologies. This fundamental difference makes it more difficult to capture investment trends using conventional reporting frameworks.
Respecting these challenges, the data from Q1 2025 is striking:
• Over $6.6 billion was invested in sustainable chemistry ventures, representing more than 30% of total venture capital in all chemistry-related sectors.
• The shift in U.S. federal leadership contributed to a 90% reduction in grant funding for sustainable chemistry, compared to Q1 2024.
The success of this report lies not only in its findings, but in the process to develop it. This effort reflects a strong commitment to transparency, and establishes a foundation for refining how investment in sustainable chemistry is evaluated and reported in the future.