The climate change funding gap underscores the significance of venture capital as a pivotal source to propel the development of cleantech ventures in the fight against global warming. Consequently, comprehending the factors that influence cleantech venture capital investment (CTVCI) is essential for efficiently allocating resources and expediting the shift to a low-carbon economy. This study examines the influence of institutional governance, innovation, economic growth, environmental stringency, energy (oil price), stock market activity and investor sentiment on CTVCI in India from the period of 2002–2022. The Necessary Condition Analysis (NCA) and fuzzy-set Qualitative Comparative Analysis (fsQCA) have been employed to enhance the complementarity of the findings based on their necessity and sufficiency. Results reveal that oil price, environmental stringency and investor sentiment are necessary and sufficient, with each component making distinct contributions of varied magnitudes to CTVCI. fsQCA identified eleven different configurations leading to high and low CTVCI. This groundbreaking study is the first to reveal the determinants required to achieve desired CTVCI levels. The study offers practical policy implications to various stakeholders on the interdependence and asymmetric causal links among determinants to increase as well as decrease the flow of CTVCI in the country.
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