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Start-up. How greentech is becoming the new hope for the sustainable economy

© Pixabay < p>This observation is clear in the world of investment. In addition to artificial intelligence (AI), greentech is establishing itself as a major lever for attracting financing. How can we explain this intensifying trend? ;?

Greentech in full swing

In 2023, French start-ups operating in greentech, i.e. the energy and environment sectors, saw their revenues increase by 27%. Similarly, they generated the most funding behind the software and IT services sector, which was stimulated by the rise of generative AI.

These performances reflect a trend that is gradually taking hold: greentech attracts and catalyzes new hopes. Because these young shoots are motivated by the desire to contribute positively to society and the environment, by offering concrete solutions to sustainable development issues. This also responds to a considerable increase in demand, which has increased during the Covid-19 pandemic.

Industries such as energy, agriculture, mobility and waste management are particularly interested in new innovative and sustainable technologies. Especially since greentech start-ups and large companies have converging interests. The latter need solutions for their ecological transition. In exchange, young companies benefit from their support to develop. Beyond the good image that this gives to the players in demand, the climate emergency requires concrete and organized efforts.

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Considerable growth prospects

And if the first stages in the life cycle of these start-ups prove complex, because they must convince on the effectiveness of their solutions, their growth prospects are immense. They can expect a significant increase in their revenues, “often doubling their financial performance over three years », explains Daniel Dos Santos, CEO of Treesition, in an editorial published in Le Journal du Net.

In addition to government support for such initiatives, such as the France 2030 plan which aims in part to support the ecological transition, the implementation of stricter environmental regulations is forcing companies to transform. This dynamic is thus creating opportunities for the solutions proposed by greentech.

Furthermore, the greentech sector as a whole covers a wide range of areas, offering numerous growth opportunities in different markets. This vast field of exploration constitutes the ideal breeding ground for developing disruptive technologies and rethinking existing economic models.

It is important to note, however, that as in any high-growth sector, some valuations can be “generous” and there is a risk of creating a speculative bubble. This observation also concerns the field of AI. In addition, competition is intensifying in some segments, which may lead to market consolidation in the future.

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Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116