Beyond AI: Biotech and Clean Energy Startups Secure Multi-Billion Dollar Investments in 2024

According to the most recent edition of the IEA's annual World Energy Investment report, global energy investment is predicted to surpass $3 trillion in 2024 for the first time, with about $2 trillion going toward clean technologies, such as electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency upgrades, heat pumps, and renewables.

A $46 million Series A was raised by Boston-based i2o Therapeutics, a biotech business creating oral therapies. There was no announcement of investors. Since its founding in 2019, the business has raised around $90 million.

Key Points: 

• Biotech Sector Funding: The largest series A fundraising round of 2024, totalling $400 million, has been secured by Mirador Therapeutics. With an initial focus on conditions affecting the gastrointestinal tract, lungs, and skin, the new biotech seeks to create precision medications for inflammatory and fibrotic disorders. This indicates growing investor interest in game-changing inventions that tackle pressing medical issues and develop treatment approaches. 
• Clean Energy Sector Funding: Investment in clean energy companies dropped from $12.3 billion in 2022, the sector's peak year, to $11.6 billion in 2023. In a deal with funds managed by AB CarVal, Boulder, Colorado-based clean-energy platform Peregrine Energy obtained a $700 million mixed round of credit, equity, and debt financing to support its pipeline of energy projects, which includes stand-alone battery, solar, and wind technologies. In contrast, AI garnered an astounding $50 billion last year, consuming a large portion of the scarce cash. Despite increased legislation and increasing climate-related weather events, the reduction in renewable energy investments is reflected in a comparable decline in corporate climate urgency. These signals growing venture capital focus on sustainable technologies, catering to the urgent need for climate-friendly energy solutions globally. 
• Comparison with AI Funding: In recent rounds, AI-focused companies alone brought in approximately $24 billion (including core AI research, infrastructure, and apps). Next in line were advanced semiconductors and hardware, with over $4 billion, biotech/healthcare, with $3.4 billion, advanced transportation, with $2.3 billion, and clean energy/nuclear, with $2.2 billion.

A calculated step toward a future powered by creativity and clever solutions is investing in AI start-ups. AI has the potential to upend established business structures and open up new markets. In addition to helping technology progress, investors who see the potential of AI and decide to fund its expansion stand to benefit from its enormous economic potential. The horizon for investment prospects in this field is growing as AI develops further, indicating a future full of transformational effect and lucrative profits.

Due to climate commitments, technical breakthroughs, and supportive regulatory policies, investment in the energy transition—which focuses on moving away from fossil fuels and toward renewable and sustainable energy sources—has increased dramatically in recent years. Global investments in energy transition technologies totaled $623 billion in 2023, and estimates indicate that by 2030, yearly investments could surpass $1 trillion.