S2G Report Finds Climate 'Growth' Capital Often Backs Companies With No Revenue

A new S2G Investments report, "The Illusion of Crowds," found roughly three-quarters of the largest climate growth rounds funded companies with under $50 million in revenue or none.

S2G Report Finds Climate 'Growth' Capital Often Backs Companies With No Revenue A new S2G Investments report, "The Illusion of Crowds," found roughly three-quarters of the largest climate growth rounds funded companies with under $50 million in revenue or none. Aaron Rafferty June 23, 2026 Key Takeaways A new report from impact firm S2G Investments, "The Illusion of Crowds," found that roughly three-quarters of the largest climate "growth-stage" rounds from 2021 to 2025 funded companies with under $50 million in revenue or none at all. The study examined more than $88 billion across nearly 280 climate-focused venture, growth, private equity, and infrastructure strategies, and found the same investors repeatedly backing the same companies. S2G released the findings the same week it closed a $1 billion fund built to write growth checks to companies that already have revenue. A new report from impact investor S2G Investments found that capital marketed as growth in climate and impact often goes to companies that are not yet profitable. The study, "The Illusion of Crowds," examined more than 88 billion dollars raised by nearly 280 climate-focused venture, growth, private equity, and infrastructure strategies between 2021 and 2025, according to ImpactAlpha . The central finding is a labeling gap. Roughly three-quarters of the largest growth-stage rounds actually funded companies generating less than 50 million dollars in revenue, or no revenue at all. In the report's words, "capital marketed as growth has often functioned as large-scale venture." The report also describes concentration. It argues that impact and climate money flows through a narrow set of channels, with the same investors backing the same companies and the same rounds. Diversity of opinion and in