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Climentum backs startups with $157M to ‘accelerate Europe’s green transition’

Despite the economic downturn and perilous position many startups find themselves in, some industries are seeing continued momentum in terms of inwards investments — one of those is climate tech.

In 2021 alone, some $40 billion was invested across more than 600 deals, a trend that is seemingly continuing into 2022 with significant capital ploughed into startups combatting the climate crisis. In tandem, we’ve seen a slew of new funds emerge dedicated to the cause, positioning fledgling climate-focused companies well to flourish against a backdrop of scale-backs and layoffs elsewhere in the startup world.

The latest such fund to emerge on the scene is Climentum Capital, which announced the first close of its inaugural €150 million ($157 million) fund, which is designed to help curb CO2 emissions and “accelerate Europe’s green transition,” the company said.

The driving force behind Climentum’s investment philosophy is Europe’s new Sustainable Finance Disclosure Regulation (SFDR), which came into force last year. SFDR is designed to improve transparency in the sustainable investment sphere, so finance companies are more accountable for specific claims they make around their sustainability credentials — it’s partly to do with preventing greenwashing. Climentum, specifically, is focused on being a so-called “Article 9 fund,” which means that it’s making sustainable investments and carbon emission reduction a core investment objective. And in the process, it gives the fund’s backers access to all the relevant data they need to report on their own ESG (environmental, social and governance) targets.

Climentum’s operations are spread across three core Northern European hubs in Denmark (Copenhagen), Sweden (Stockholm) and Germany (Berlin), with backing from a host of Nordic pension funds and Europe-based conglomerates. This includes chemical giant BASF’s venture capital arm, which sees Climentum as a conduit to achieving its own climate-focused goals.

Climentum has currently only secured around half of the targeted €150 million for its first close, but it expects to close the full fund by the year’s end. In the longer term, it’s looking to make some 25 investments across Europe, from late-seed stage to Series A, with individual figures ranging from around €1 million to €5 million. The six core focus categories that Climentum will target for reducing CO2 will be next-gen renewables; food and agriculture; industry and manufacturing; buildings and architecture; transportation and mobility; and waste and materials.

Climentum said that it is already close to finalizing three investments which are currently at the due-diligence stage and are focused on material recycling, alternative protein production and insect farming.

Climentum Capital is an inspiring Climate Tech Venture Capital firm focused on backing startups that can cut down megatons of CO2 emissions in a concrete and measurable way. All the best to the entire team at Climentum Capital on this endeavour.

Shishir Gupta, Founder and CEO, StartupLanes

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