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Submit your application to the Acceleration and Pre-Acceleration programs.
Applications are open to anyone (it is not necessary to be a Bocconi student or alumnus/a) anywhere.
Deadline: January 8th, 2025.
In 2024, sustainability is no longer an optional extra for European startups. A revealing statistic underscores this shift: 21% of all venture capital (VC) dollars in European technology went to sustainability-driven companies (in climate tech specifically), more than double the US equivalent of 11%. This commitment underlines Europe's leadership in tackling climate challenges and developing solutions aimed at mitigating, rather than just adapting to, climate warming.
These findings come from a report this year celebrates its 10th anniversary. "State of European Tech 2024 ” by Atomico, dealroom.co and crunchbase, examines not only the present, but also the transformative trajectory of the past decade and the road ahead. While the European tech ecosystem has seen remarkable progress in talent, capital, and company building, 2024 has also been a year of contrasts, marked by political and regulatory turmoil and scepticism about Europe’s ability to scale breakthrough companies.
Against this backdrop, with 2024 on track to become the second largest year of funding after 2023 (as seen in Figure1), sustainability is emerging as a key driver of growth and innovation. What lessons can we learn from this apparent contradiction, and what is the way forward for Europe's innovators?
Figure1 – source: State of European Tech 2024Far from being limited to climate-focused ventures, sustainability offers tangible benefits for startups of all kinds. For founders, the question is not whether sustainability fits their business but how they can use it strategically to drive growth and scale.
Sustainability for startups is fundamentally about creating positive impact, whether for people, the planet or both. This impact can be achieved through three main routes, each addressing a different aspect of a business's operations and strategy:
Impactful business models: these are startups that create impact directly through their products or services. Examples include companies that address critical challenges, such as Second Nature, which provides weight management tools to combat diabetes. In these cases, the core business itself delivers measurable social or environmental benefits.
Impactful Operations (ESG): these startups integrate environmental, social and governance (ESG) principles into their operations, even if their products or services are not directly impact-oriented. This includes decisions across the value chain, such as reducing emissions, promoting diversity in hiring, or ensuring transparent governance. For example, companies like Twilio use their internal diversity, equity and inclusion (DEI) initiatives to drive impact.
Impactful profits: some companies use their profits to create impact, using models such as philanthropy, corporate social responsibility (CSR) or cross-subsidizing impactful initiatives. An iconic example is Patagonia, which has committed all its profits to fighting climate change and protecting natural resources. This approach demonstrates that even companies with traditional operations can generate significant impact by leveraging their financial results.
The introduction of the Sustainable Finance Disclosure Regulation (SFDR) in 2021 marks a significant milestone in Europe's support for sustainable startups. By increasing the transparency of sustainability practices, the SFDR helps startups access capital while aligning with investors' priorities.
Central to the SFDR are the classifications of investment funds, which reflect the degree to which sustainability is integrated into their strategies:
Article 6 funds: address sustainability risks but are not specifically focused on ESG goals, serving as a baseline for disclosure.
Article 8 funds: promote ESG characteristics and encourage alignment with broader goals, earning the nickname “light green” funds.
Article 9 funds: exclusively invest in projects that have sustainability as their core objective, making them the “dark green” standard.
For founders navigating this ecosystem, understanding these classifications and targeting the right investors - particularly Article 8 and Article 9 funds - can significantly improve their ability to attract capital and scale impactful solutions, even though many Article 6 funds are highly committed to sustainability efforts.
Ludovico Dejak, Innovation & Sustainability Specialist at B4i, brings a wealth of experience in guiding early-stage startups to integrate ESG principles into their core strategies. He often refers to a powerful study by NielsenIQ and McKinsey, which analyzed five years of US sales data on hundreds of thousands of products. It found that products with ESG-related claims experienced cumulative growth of 28% over five years, significantly outpacing the 20% growth of products without such claims. Brands of all sizes saw measurable financial benefits. “Studies like this prove that sustainability is not just about purpose, but also about profit” says Dejak. "The reason to work in this direction is not just about better customer engagement. It's also about better attracting and retaining talent, staying ahead of regulation, and finding alignment with investors to lock-in mission and build a long-term legacy."
State of European Tech 2024 provides further evidence of this momentum. Sustainability-driven startups have emerged as key players in the European ecosystem, attracting significant attention from investors. Early-stage funding rounds for sustainability-related themes such as energy, transport and carbon management have become a driver of innovation (as shown in Figure 2).
Figure 2 – source: State of European Tech 2024 The European venture capital landscape has firmly embraced sustainability, with the energy transition emerging as a key focus for investors. This includes the development of clean energy infrastructure, carbon capture technologies and innovative software solutions to reduce emissions and improve efficiency. Startups such as Germany's Voltfang, which specializes in battery storage, and Norway's Vind, which focuses on wind farm planning, are examples of how sustainability can become a launchpad for disruptive innovation and long-term value creation.
Over the past decade, sustainability / climate sector has evolved from a niche area to a dynamic sector that spans industries and themes (see Figure 3), attracting both early-stage and growth-stage investment. However, this evolution brings complexity: while significant capital is available, finding the right funding partners remains a key challenge for many founders, particularly in specialized areas requiring significant expertise and resources.
Figure 3 – source: State of European Tech 2024Article 9 funds stand out from the crowd for their exclusive commitment to sustainability. These funds are crucial for startups that are tackling large-scale, transformative challenges, ranging from renewable energy systems to advanced materials. Various players in the European ecosystem have taken notice of Article 9 funds:
Specialist VC firms: Impact-focused firms such as Lowercarbon Capital and Energy Impact Partners are consistently backing sustainability-driven startups. Lowercarbon Capital, for instance, specializes in funding climate technologies such as carbon capture, while Energy Impact Partners focuses on energy transition solutions.
Government Institutions: in Europe's funding ecosystem, government-backed initiatives play an important role. BPI France, backed by the French government, accounts for 18% of sustainability-driven investments, highlighting Europe's reliance on public-private collaboration.
Deep-Tech Innovators: startups in resource-intensive sectors, such as clean energy and carbon capture, often rely on Article 9 funds to bridge the gap between early-stage development and market-ready solutions.
Europe’s unique approach to financing sustainability is also evident in its reliance on government-backed initiatives, which contrasts sharply with markets such as the US, where corporate venture funds dominate (see Figure 4). This model reflects Europe’s broader strategy of integrating public policy and private investment to accelerate the transition to a green economy.
Figure 4 – source: State of European Tech 2024 Sustainability is not an optional add-on to a startup’s strategy; it is the foundation of a mission-driven company’s culture. This shift in mindset — from treating sustainability as a compliance measure to embedding it as a strategic priority — is reshaping the way startups and established companies alike operate. Companies are no longer viewing sustainability as a regulatory checkbox. Instead, they are embracing it as a core driver of shareholder value and long-term growth.
“Integrating sustainability into your business model and your operations from day one isn’t just about doing the right thing” says Ludovico Dejak, “it’s about finding your purpose as a growing organization, making clear your impacts on all your stakeholders at scale and creating lasting value.” This perspective has guided B4i’s approach to working with startups, helping them align their operations with mission-driven principles while ensuring measurable impact.
In B4i, Early-stage startups benefit from continuous support and tailored sustainability lectures by Stefano Pogutz - Professor of Practice, Corporate Sustainability at SDA Bocconi School of Management and Strategic Advisor at B4i - and hands-on workshops with Ludovico Dejak to build a strong foundation for long-term impact. As startups grow, they gain access to the new Sustainability Clinics, developed in collaboration with leading sustainability firms such as InVento Lab and NATIVA. These clinics provide startups professional assistance and Bocconi master students' support to access a complete path to structure their approach.
Is Europe ready to lead the next wave of sustainable innovation? The progress made in recent years suggests a resounding yes, but significant challenges remain. Access to funding, especially in the growth phase, and the complexity of scaling in global markets continue to be barriers for many sustainability-driven startups. Overcoming these obstacles will be crucial to unlock the full potential of Europe’s green economy.
Despite these challenges, the opportunity for European founders is unparalleled. By combining ambition, sustainability, and collaboration, they have the chance to leave a global mark — not just as innovators, but as leaders in tackling some of the world’s most pressing challenges. Sustainability is no longer just an option; it is a fundamental driver of success, innovation, and resilience.
The call to action for startups is clear: embrace sustainability as a core strategy, not a side goal. By doing so, founders can build companies that are not only competitive but transformative, shaping the future of their industries and contributing to a greener, more equitable world.