After three years of fundraising, the Global Fund has finally closed its first fund of 300 million euros, which is 50 million euros short of its 2021 target, but against the backdrop of war and economic uncertainty. , it is still a considerable amount. The VC was originally born out of the founders of Ecosia, an independent search engine where search inquiries fund tree planting.
If you want to compare, Norsken VC is a $130 million impact VC covering climate, while Demeter Partners last raised €250 million in funding focused on climate.
The Global Fund is supported by the European Investment Fund (with a €50 million commitment), KfW Capital, Wahastamsfonds, Bpifrance (the fund's first investment outside France), PwC Germany, NRW.BANK and Ignitis Group. The Global Fund is also supported by pension funds including the UK Environment Agency Pension Fund, the Wiltshire Pension Fund and Croatia's Erste Pravi.
The Global Fund, which has already invested some of its funds in a number of climate change technology companies, says this funding will enable it to invest in 25 to 30 European decarbonization startups.
Some of the most notable investments include IQM Quantum Computers, Space Forge, Planet A Foods, Juicy Marbles, ENOUGH, CustomCells, recycling company Cylib, and proptech startups aedifion and Ecoworks.
The Global Fund completed its fundraising amid war in Europe, rising interest rates, and unstable LPs. Fund managing partner Daniel Višević said: “2023 in particular was a very difficult funding environment.''
He added: “We only invest in decarbonization technologies, and we have set aside more than two-thirds of our capital for follow-on investments, as it is difficult to fill late-stage gaps in Europe.” added.
He said hardware must be a key part of the strategy: “One of the things we're doing wrong in Europe is not focusing on climate-fighting hardware.” He added that the fund invests in technical talent such as biotechnologists and biochemists to evaluate investments.
The Global Fund's funding comes at an opportune time.
European climate technology startups raised more than $20 billion in 2023, about the same level as the previous year and bucking the downward trend in other sectors, Dealroom said.
The UK, Sweden and Germany led the way in 2023 for integrated climate technology ventures, while Iceland, Lithuania and Bulgaria showed significant growth.
And climate change technology is working well in Europe.
Valuations remain strong, with European energy patents up 15% year-on-year.
The Berlin-based Global Fund was founded in 2021 by Daria Sakharova, Visevic, Tim Schumacher and Craig Douglas. We have offices in Berlin, Munich, Cologne and Amsterdam.