European Investment Fund backs Danish climate-tech fund at first close

The European Investment Fund (EIF) has committed €40 million to Climentum Capital Fund II, a Danish venture capital fund focused on climate technology. This investment helps the fund reach its first close of €60 million, with additional capital from Denmark's Export and Investment Fund (EIFO) and the Danish Society of Engineers (IDA). The fund aims for a total size of €100 million.

Climentum Capital Fund II will support approximately 20 early-stage companies in the hardware and deep-tech sectors across energy, industry, transport, and agriculture. The fund will concentrate its investments in Denmark, Sweden, Germany, Austria, and Switzerland. The strategy aims to enhance energy security, improve industrial performance, and support the decarbonisation of Europe's real economy.

According to EIF Deputy CEO Merete Clausen, Europe possesses strong research and business ideas that require investors willing to back industrial technologies for future clean growth. Climentum Capital Fund II addresses a significant financing gap by supporting entrepreneurs developing solutions for the real economy. The fund anticipates its portfolio companies will collectively reduce carbon dioxide emissions by roughly 1.5 million tonnes annually.

The EIF's investment is supported by the RCR-REPowerEU mandate, aligning with the EU's goal of achieving climate neutrality by 2050 and reducing reliance on imported fossil fuels. This funding arrives amidst a challenging financial environment marked by rising interest rates and macroeconomic uncertainty, which has made capital acquisition more difficult for capital-intensive climate tech startups.