After three years of fundraising, the Global Fund has finally closed a first fund of €300 million, €50 million less than its aim in 2021, but it is still a considerable number given a context of war and economic uncertainty. The VC originally emerged from the founders of the independent search engine Ecosia, where search queries financed the planting of trees.
If you’re looking for comparisons, Norrsken VC is a $130 million impact VC that covers climate, while Demeter Partners lasts increase a 250 million euro fund focused on climate.
The Global Fund will be Backed from the European Investment Fund (which contributed 50 million euros), KfW Capital, Wachstumsfonds, 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 Plavi.
The Global Fund has already invested some of its cash in several climate technology companies, but says this capital will allow it to make between 25 and 30 investments in European startups around decarbonization.
Its 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 has completed its surge during a war in Europe, rising interest rates and nervous LPs. The fund’s managing partner Danijel Višević said: “It was a very difficult fundraising environment, especially in 2023.”
“We only invest in decarbonization technologies and reserve more than two-thirds of our capital for later investments because in Europe it is difficult to close the gap in the later stages,” he added.
He said hardware had to be an important component of his strategy: “This is something we are doing wrong in Europe: not focusing on climate hardware.” He added that the fund has invested in technical talents such as biotech and biochemistry to evaluate investments.
The increase in the Global Fund comes at an opportune time.
In 2023, European climate tech startups raised more than $20 billion, almost matching the previous year and bucking downward trends in other sectors. according to the negotiating room.
The United Kingdom, Sweden and Germany led total climate tech venture capital in 2023, but Iceland, Lithuania and Bulgaria showed notable growth.
And climate technology is he’s doing well in Europe.
The ratings are maintaining value and European energy-related patents increased by 15% year-on-year.
The Global Fund, based in Berlin, was founded in 2021 by Daria Saharova, Višević, Tim Schumacher and Craig Douglas. It has offices in Berlin, Munich, Cologne and Amsterdam.