Digital Climate Group's Strategic Momentum and Funding from Daiwa Securities: Unlocking Clean-Tech Innovation and Institutional Validation as Catalysts for Long-Term Growth

In the rapidly evolving landscape of climate technology, institutional validation and strategic funding have emerged as critical drivers of innovation. Digital Climate Group, through its joint venture DG Daiwa Ventures with Daiwa Securities Group, is positioning itself at the forefront of this transformation. By securing a $69 million third fund and aligning with global sustainability frameworks, the group is not only validating the urgency of climate action but also unlocking high-impact clean-tech startups poised to reshape industries.

Institutional Validation and Strategic Alignment

DG Daiwa Ventures’ third fund, closed in 2025, reflects robust institutional confidence. Backed by major players such as MUFG, MS&AD Insurance Group, and K4 Ventures, the fund underscores a shared commitment to addressing climate challenges through early-stage innovation [1]. This institutional support is further reinforced by Daiwa Securities Group’s Climate Change and Resilience Policy, which incorporates TCFD-aligned scenario analyses under 1.5°C/2°C and 4°C climate projections. These analyses guide long-term resilience planning for the company’s real estate operations, demonstrating a forward-looking approach to risk management [2].

Daiwa’s strategic initiatives extend beyond financial backing. The group’s endorsement of the GX League Basic Concept—a national initiative in Japan to achieve carbon neutrality by 2050—highlights its alignment with industrial decarbonization goals [1]. Additionally, its participation in the TNFD Forum (Taskforce on Nature-related Financial Disclosures) signals a commitment to integrating nature-positive outcomes into investment decisions. These moves collectively position Daiwa as a bridge between institutional capital and climate innovation.

Unlocking Clean-Tech Innovation

The third fund’s focus on climate tech is evident in its portfolio of startups addressing sustainability challenges. For instance, digzyme Inc., a portfolio company, is developing a platform to systematize enzyme reaction design, accelerating the development of biocatalysts for industrial applications. This innovation could reduce reliance on energy-intensive chemical processes, aligning with net-zero objectives [1]. Similarly, Morus Inc. is leveraging silkworm-derived proteins to create sustainable materials for food, cosmetics, and pharmaceuticals, offering a biodegradable alternative to synthetic inputs [2].

These investments reflect DG Daiwa Ventures’ emphasis on deep-tech solutions that tackle systemic environmental issues. By prioritizing startups like digzyme and Morus, the fund is fostering a pipeline of technologies that address both market gaps and planetary boundaries.

Market Projections and Long-Term Growth

The climate tech market is poised for exponential growth, driven by regulatory pressures, corporate sustainability commitments, and technological advancements. According to a report by Grand View Research, the global climate tech market size was valued at $38.5 billion in 2024 and is projected to reach $115.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 20.9% [3]. Another forecast from Future Market Insights anticipates an even higher CAGR of 24.6% from 2025 to 2035, with the market reaching $220.3 billion by 2035 [4].

DG Daiwa Ventures’ 10-year horizon aligns with these long-term trends, allowing it to capitalize on the compounding effects of early-stage innovation. By investing in scalable solutions today, the fund is positioning itself to benefit from the market’s trajectory while contributing to global decarbonization efforts.

Conclusion

Digital Climate Group’s strategic momentum, fueled by Daiwa Securities’ institutional backing and climate-aligned initiatives, exemplifies a model for sustainable growth. The third fund’s emphasis on clean-tech startups, coupled with the broader market’s projected expansion, highlights a compelling opportunity for investors seeking both environmental impact and financial returns. As regulatory frameworks tighten and corporate sustainability goals intensify, DG Daiwa Ventures’ portfolio of deep-tech innovators is well-positioned to deliver long-term value while advancing the global transition to a low-carbon economy.

**Source:[1] DG Daiwa Ventures closes third fund at nearly $70m -
https://globalventuring.com/corporate/asia/dg-daiwa-ventures-closes-third-fund-at-nearly-70m/[2] Environmental Initiatives | Sustainability Initiatives | Daiwa ...
https://www.daiwa-securities-living.co.jp/en/esg/environment[3] Climate Tech Market Size & Share | Industry Report, 2030
https://www.grandviewresearch.com/industry-analysis/climate-tech-market-report[4] Climate Tech Market Trends – Growth & Forecast 2025- ...
https://www.globenewswire.com/news-release/2025/02/27/3033750/0/en/Climate-Tech-Market-Trends-Growth-Forecast-2025-2035-Future-Market-Insights-Inc.html