Climate tech-focused venture capital firm Climentum Capital announced the launch of Climentum Capital Fund II, its second fund aimed at supporting early-stage climate technology startups across Europe.
The new fund is being launched with €60 million (USD$68.4 million) in commitments raised at the first close, with Climentum targeting a fund size of €100 million (USD$114 million).
Founded in Copenhagen in 2022, Climentum Capital specializes in early-stage investments in businesses developing technologies that can reduce the carbon footprint of sectors responsible for a large share of Europe’s greenhouse gas emissions.
The new Article 9 fund will focus on Seed and Series A companies providing solutions to strengthen energy security, improve industrial efficiency, and accelerate industrial decarbonization, with a geographic emphasis on Denmark, Sweden, Germany, Austria and Switzerland. Key focus investment areas include companies developing hardware and deeptech solutions for energy, industry, transport and agriculture. The fund is anticipated to support companies whose tech products are capable of reducing emissions of CO2 by approximately 1.5 million tonnes a year.
Climentum Capital General Partner Morten Halborg, said:
“The fundraising environment for early-stage climate hard tech has not been easy. Investors are more selective, timelines are longer and the proof bar is higher. That is why the composition of the Fund II launch matters: our investor syndicate reflects informed conviction, not momentum investing.”
The first close of the fund included a €40 million commitment from the European Investment Fund (EIF), part of the European Investment Bank Group (EIB), as well as backing from Denmark’s export and investment fund EIFO and the Danish Society of Engineers (IDA).
EIF Deputy Chief Executive, Merete Clausen, said:
“Europe has excellent research and business ideas. To build on these, it needs investors willing to back companies developing the industrial technologies that will shape the next generation of clean growth. Climentum Capital Fund II addresses an important financing gap by supporting entrepreneurs building climate solutions for the real economy.”
