Which climate-tech startups are headed toward IPO?

Plus: Europe's startups turn to debt over equity, and we introduce our pharmatech coverage

Welcome to The Weekly Pitch. Every Friday, we compile the week’s top news and research from PitchBook, the industry-leading source for info on the worlds of VC, PE and M&A.

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Climate-tech startups are having a strong year supported by regulatory tailwinds, high energy prices and investment. But exits remain elusive.

The capital-intensive hardware needs of many companies mean the path to commercial scale is longer than that of asset-lite sectors, PitchBook reporter Rosie Bradbury writes.

But there are bright spots: Stand-out startups like Northvolt and Andreessen Horowitz-backed KoBold Metals have risen rapidly and could gear themselves up for an IPO in the near future.

From Sila to Climeworks, we've put together a list of 10 venture-backed climate-tech companies with a high likelihood of going public.

▶️ SEE THE LIST

Why some European startups are picking debt over equity

Venture debt deal value is on track to reach new heights in Europe this year as a challenging equity market pushes startups toward alternatives, writes PitchBook's Leah Hodgson.

With less equity capital available, some startups have turned to debt to fund day-to-day operations and extend their runways.

"Market conditions are making companies, especially mature ones, hesitant to raise equity capital due to potentially low valuations," said Shmuel Chafets, founder and partner at Berlin's Target Global. "Venture debt acts as a bridge, extending their runway until the market improves."

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Introducing our pharmatech coverage for PE, VC

We're launching our coverage of the pharmatech sector, which includes contract organizations and outsourcing services for drug research, development and manufacturing. PitchBook senior analyst Kazi Helal details the market landscape and dealmaking. Some key points:

• The sector has traditionally been dominated by a few large companies, but PE and VC investors are discovering opportunities and leveraging post-pandemic biomanufacturing needs.
• Dealmaking has diminished from post-pandemic peaks and faced continued pressure in 2024. Meanwhile, PE investors are focused on consolidating mature companies.
• Investors are finding opportunities in novel technologies like generative AI as well as maturing ones like cell and gene therapies—where high demand creates the need for scalable manufacturing.

▶️ DOWNLOAD THE REPORT

• As it courts LPs for its latest $275 million fund, Union Square Ventures can lean on its reputation as one of the top-performing VC firms of the last decade.
• 💂 The chances of UK challenger bank Revolut pursuing a listing in London appear slim.
• Carveouts are on the rebound, accounting for a significant share of middle-market deals in Q1.

• 🔋 Lithium battery recycling startups drew the largest share of VC funding in the carbon and emissions space in Q1.
• Get a peek at the data from our upcoming PitchBook-NVCA Venture Monitor.
• China has become a top target for healthcare investors as companies capitalize on opportunities for more affordable medicine.