After a three-year fundraising drive, the Global Fund finally closed a first fund of 300 million euros, 50 million euros short of its 2021 target, but still a significant number given the backdrop of war and economic uncertainty. VC originally came from the founders of the independent search engine Ecosia, where search surveys funded tree planting.
If you’re looking for comparisons, Norrsken VC is a $130M impact VC covering climate, while Demeter Partners has a duration lifted up a €250 million climate-focused fund.
Global Fund will be supported from the European Investment Fund (which allocated EUR 50 million), KfW Capital, Wachstumsfonds, Bpifrance (the fund’s first investment outside France), PwC Germany, NRW.BANK and the 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 World Fund has already committed some of its cash to various air-conditioning technology companies, but says this capital will allow it to make 25-30 investments in European start-ups around decarbonisation.
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 World Fund completed its increase during a war in Europe, interest rate hikes and LP turmoil. Managing partner Danijel Višević said: “It’s been an extremely tough fundraising environment, especially in 2023.”
“We only invest in decarbonising technologies and keep more than two-thirds of our capital for follow-on investments, because in Europe it is difficult to bridge the gap of later stages,” he added.
He said hardware had to be an important element of his strategy: “That’s one thing we’re doing wrong in Europe, we’re not focusing on climate hardware.” He added that the fund has invested in technical talents such as biotech and biochemists to evaluate investments.
The increase in the Global Fund comes at an opportune time.
Over $20 billion raised by European air-conditioning technology startups in 2023, nearly equal to the previous year, and bucking the downward trend in other sectors, according in the Dealroom.
The UK, Sweden and Germany led the way for overall climate tech VC in 2023, but Iceland, Lithuania and Bulgaria saw notable growth.
And climate technology is he is doing well in Europe.
Valuations are value retention and European energy-related patents increased by 15% year-on-year.
The Berlin-based Global Fund was founded in 2021 by Daria Saharova, Višević, Tim Schumacher and Craig Douglas. It has offices in Berlin, Munich, Cologne and Amsterdam.
