Investment in adaptation startups ‘remains glaringly low’

New research by Tailwind Climate finds funding gaps in the adaptation space, even as investor interest starts to consolidate.

The adaptation and resilience investment space is amassing investor interest — but still has big funding gaps slowing its evolution. 

new report, published today by the investment and advisory firm Tailwind Climate, has found that when it comes to companies purely focused on adaptation, “investment remains glaringly low for innovators at all stages.” That’s despite emerging investor interest in the market, estimated at $2 trillion per year in 2026.

“Pure play adaptation companies represent 12% of all climate tech companies, but they’re only receiving 3% of the funding,” Tailwind’s co-founder Katie MacDonald told Latitude Media. “One of the specific areas of challenge is that there’s very little funding at the pre-seed and the seed level. There’s proportionately more funding at the research level.” 

Read the full story (open access).