How the trend towards green fintech developed in 2022

Last year we considered two scenarios:?

1. Green fintech will become mainstream in the next three to five years. Regulators and society will demand that ESG resilience parameters become an integral part of scoring and lending models, i.e., directly influencing financing decisions. Investors will support this new fintech direction.
2. Green fintech will remain a feature within the open ecosystems. The ESG agenda will focus more on fundamental issues like reducing energy consumption, ensuring responsible consumption, and switching to renewable energy sources.

What happened with Green FinTech in 2022

Looking back on these predictions, here’s what we got right:

• Green fintech (and all climate-tech) went mainstream in some parts of the world. European countries in particular were trailblazers to this trend.

Whilst we were able to foresee the above, we did not anticipate the following:

• In terms of climate responsibility, we underestimated how polarised the world could become.

Looking forward, here’s what we expect to happen next:

• Less greenwashing, more data-driven climate technology

Recent startup news:

• Drata, a compliance automation platform, just announced $200M Series C funding at 2$Bn valuation https://drata.com/blog/announcing-series-c
• Another platform for compliance automation Vanta became a unicorn in June, with a $1.6 billion valuation. https://www.bloomberg.com/news/articles/2022-06-08/vanta-funding-from-craft-sequoia-values-startup-at-1-6-billion?

Read all of our trends for 2022 on trends.digitalhorizon.vc.

The forecast for 2023 is coming soon.