At Antler, we believe that every startup has an opportunity to build sustainability into its DNA from day one—not as an afterthought, but as a strategic lever for growth, resilience, and competitive differentiation. Sustainability is not just about compliance; it’s about securing better financial outcomes, attracting investors, mitigating risks, and building a stronger business that thrives in an evolving market.

Below is an extract from Antler’s 2024 Sustainability Report, which highlights a positive correlation between companies that engage with sustainability considerations, integrate best practices, and achieve stronger funding outcomes.

Why sustainability is a competitive advantage:

1. Stronger funding and valuation outcomes ****

📌 Sustainability is a funding multiplier. Investors are increasingly prioritizing sustainability-linked companies, and the data backs this up:

• Higher valuations and market traction: Antler’s portfolio analysis indicates that startups integrating sustainability attract greater external funding, achieve stronger market traction, and secure higher valuations.
• Investor demand for sustainability: A Morgan Stanley survey found that 85% of companies see sustainability as a value-creation opportunity, yet many large businesses struggle to integrate it. Startups, however, have the agility to bake sustainability into their business models from day one—turning it into a competitive edge rather than a compliance burden.
• Regulatory pressure on capital providers: With regulations like SFDR (EU), SDR (UK), and CSRD (EU) pushing transparency, VCs now need to report how they assess and promote sustainability in their investments. This means startups with strong sustainability fundamentals are more attractive investment targets.

<aside> 💡 Key insight: Sustainable investments have gained momentum, accounting for more than a third of all assets globally according to the Global Sustainable Investments Alliance (GSIA), and are expected to reach US$40 trillion by 2030.

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The chart below highlights the increasing number of sustainable finance policies happening around the world.

Disclosure regulations mean that VCs need to explain:

• How they are assessing sustainability in the investments they make.
• How they are promoting sustainability characteristics across their investments.
• How they measure progress (and report on this).

As companies grow there will be certain data requests coming from investors around how a company is led, managed, and how it operates.

⏩ Bottom line: Investors are actively looking for startups that can demonstrate sustainability as a driver of long-term value. Those that embed sustainability early stand out and unlock better funding opportunities.

2. Talent magnet: attracting and retaining the best employees ****

Hiring and retaining top talent is a challenge for every startup. Millennials and Gen Z—who will make up 75% of the workforce by 2025—prioritize employers with a clear social and environmental mission.

• Stronger employee engagement and retention: Companies with clear sustainability goals enjoy higher employee engagement, retention, and productivity.