Why Israel, Why Now: How Women Investors Are Shaping the Future of Climate Innovation

Israel is renowned as a hub for innovative climate solutions, but a new chapter is unfolding—one driven by the rising influence of Israeli women investors in the Climate Tech sector. These visionary leaders are not merely funding startups; they are redefining the future of climate innovation by prioritizing investments that are diverse, inclusive, and forward-thinking.

The importance of these shifts extends beyond dollars and deals. Women investors are shaping not just the companies they fund, but the very ethos of the industry. By championing diverse leadership and embedding inclusivity into their investment strategies, they are ensuring that climate tech is not only about innovation but also about equity, sustainability, and long-term societal benefit.

According to data from Finder, across all sectors, only 15.3% of founders or CEOs are women, and 21% hold any key C-level roles (e.g., CTO, CFO, COO). Women-led companies accounted for 16% of funding rounds and 10.3% of total funding over the past five years. While these numbers highlight underrepresentation, the climate sector tells a slightly different story.

In climate-focused companies, women founders or CEOs make up 17.2%, and women hold 25.7% of key leadership roles—both metrics surpassing the averages across sectors. Even more notable, women-led climate companies secured 16.7% of funding rounds and 17.2% of funding amounts over the past five years. These higher figures suggest that the climate sector is a relatively fertile ground for women leaders and offers better funding proportional to their representation.

This data paints a picture of progress. It reveals a sector where women’s leadership is not just an exception but an emerging norm. The climate tech ecosystem, with its emphasis on purpose-driven solutions and societal impact, appears to be naturally aligned with the values women leaders bring to the table.

“Israel has long been a leader in climate tech, driven by its deep tech innovations. Notably, around 10% of startups in this ecosystem are women-led, a promising statistic compared to global averages. Currently, as investment levels in Israel decline due to geopolitical challenges, the potential to discover high-potential startups is greater than ever. I believe this is the sweet spot for investors. With valuations at a low point, a focus on deep tech solutions, and a commitment to impactful, ESG-driven companies, now is the right time to invest.”

– Shirley Shahar, Dana-Global

This perspective encapsulates the transformative potential of the moment. Women investors are navigating a challenging investment climate with determination, turning current adversity into opportunity. Their approach reflects a belief in the dual power of technology and resilience.

Female-led venture capital firms and companies are proving that diversity in leadership is a catalyst for impactful change. Their success demonstrates that investing in women-led ventures yields not only strong financial returns but also significant societal benefits. This emerging approach is transforming who leads, what outcomes are emphasized, and why diverse leadership is essential for achieving both profit and meaningful impact.

Why Women Investors Matter in Climate Tech

As global warming intensifies, it demands fresh perspectives and bold approaches. Women investors bring unique priorities and a holistic lens to their decision-making. Studies show that female investors often emphasize sustainable outcomes and long-term societal impact over short-term returns, making them perfectly aligned with the ethos of Climate Tech.

In Israel, where 900+ climate startups address everything from renewable energy to sustainable agriculture, this approach is helping to foster solutions that go beyond profitability. Women investors are advocating for innovations that are not just scalable but also equitable, ensuring benefits are distributed across communities. This highlights the global interconnectedness of climate challenges and the centrality of Israel’s innovation ecosystem in addressing them.

“The future of our planet, health, economy, and society hinges on groundbreaking solutions — and these solutions are being built today. In Israel’s dynamic tech ecosystem, purpose-driven founders are leveraging cutting-edge technologies: AI, machine learning, and big data — to tackle some of the world’s most pressing challenges. With global climate funding projected to surpass $1.2 trillion in 2024, startups are uniquely positioned to lead the way in developing climate technologies.

Steady access to private capital, increased venture funding, and a growing pool of non-dilutive grants are empowering these agile, innovative companies to address complex global issues. In an ever-changing world, investing in climate tech is no longer optional — it is inevitable and essential for building resilience, adaptability, and a thriving future.”

– Shani Zanescu, Founder & Managing Partner of Universe Partners – the Global Resilience Investment House, Founder & Chair of PLANETech, and a climate tech investor at Jibe Ventures.

The Israeli Advantage: A Fertile Ground for Women in Climate Leadership

Israel is uniquely positioned to nurture women leaders in Climate Tech due to its culture of collaborative, solutions-oriented mindset. This small but dynamic nation combines world-class technological expertise with a strong emphasis on diversity and inclusion, making it an ideal ecosystem for fostering female leadership. Israel’s focus on tackling global climate challenges—spanning renewable energy, water management, and sustainable agriculture—provides a fertile ground for women to lead impactful ventures. By embracing bold ideas and empowering diverse voices, Israel is not only addressing climate challenges but also shaping a more equitable and innovative future.

“It is no coincidence that many of the brightest scientists, founders, and entrepreneurs we see tackling climate change are those individuals intimately involved with the war effort and advocating for the future of our country as a healthy democracy. These are values-aligned and exceptionally talented humans who are pulling on every possible lever to affect a better world for the generations that come after us, both within Israel and for our planet at large. Our mission as ZORA has always been to fight global warming by investing in fantastic teams and innovation. But today we feel an additional urgency to be backing Israel’s climate entrepreneurs for the critical role they’re playing in society.”

– Vanessa Bartram, ZORA

What the Future Looks Like

The intersection of Climate Tech and female leadership in Israel is just beginning to flourish. Women investors are spearheading a transformative vision for climate innovation—one that combines technological advancement with inclusivity and equity. As more capital flows into this burgeoning sector, driven by women leaders, we can anticipate solutions that not only tackle the root causes of climate challenges but also prioritize global sustainability.

“There is a unique investment opportunity in Israel right now. With fewer active investors, the quality of technology and talent remains high. Many ventures are currently undervalued, creating an exceptional opportunity to invest in high-quality companies at relatively lower valuations compared to those abroad…. Dual Use energy tech solutions are likely to attract significant interest, such as off-grid solutions and technologies designed to adapt to extreme climate conditions, as well as addressing climate-related challenges like wildfires.”

– Yael Weisz, Net Zero Technology Ventures

Israeli women investors in Climate Tech are leading a profound shift, transforming the sector with their commitment to equity, innovation, and sustainability. By fostering diverse leadership and aligning investments with long-term societal impact, they are not only addressing global climate challenges but also setting a new standard for purposeful investing. With Israel’s unique ecosystem as a backdrop, these trailblazers are creating solutions that combine cutting-edge technology with inclusivity, proving that sustainable innovation is both an opportunity and a necessity. Their vision is paving the way for a more resilient, equitable, and thriving future—one where bold ideas drive meaningful global change.