The European Investment Fund (EIF) has pledged €40 million to Climentum Capital Fund II, a Danish venture capital fund that invests in early-stage climate-technology companies across Europe.
Climentum Capital Fund II has reached a €60 million first close towards a €100 million target, with backing from the European Investment Fund (EIF), Denmark’s Export and Investment Fund (EIFO) and the Danish Society of Engineers (IDA), the EIF reported on Friday.
The fund will invest mainly in Seed and Series A companies — early rounds of funding for young businesses — developing hardware and “deeptech” technologies for energy, industry, transport and agriculture, according to the EIF.
It said the fund will focus particularly on companies based in Denmark, Sweden, Germany, Austria and Switzerland.
Fund plans 20 investments
Climentum Capital Fund II expects to make 20 investments, the EIF informed.
The cornerstone commitments at first close total €60 million, including €40 million from the EIF, €15 million from EIFO and €5 million from IDA.
Climentum Capital was founded in Copenhagen in 2022 and specialises in early-stage investments in companies developing technologies intended to reduce the carbon footprint of high-emitting sectors.
The fundraising environment for early-stage “climate hard tech” has been difficult, with investors more selective and timelines longer, Climentum Capital general partner Morten Halborg said.
IDA, which represents more than 180,000 engineers, scientists and IT professionals, said access to capital remained one of the biggest barriers for climate-tech entrepreneurs.
The EIF investment is supported by the RCR-REPowerEU mandate.
