Berlin-based World Fund, a climate tech venture capital firm, announced on Thursday that it has secured €50+M in funding from institutional Limited Partners (LPs).
New investors include KfW Capital, the investment arm of a major national development bank, Ignitis Group, a Lithuanian renewables-focused integrated utility, and a leading German reinsurance company.
Daria Saharova, co-founder of World Fund, says, “We see this as a strong signal for climate tech in Europe, especially against the backdrop of the venture capital slowdown.”
“In the first half of 2023, the investment environment for climate tech had slowed – the levels of capital being invested and deployed across the sector dropped 57.6 per cent between Q1 2022 and Q1 2023.”
“This development came as interest rates soared, and Europe entered a broader inflationary and recessionary environment,” adds Saharova.
A 100% green and secure energy ecosystem
Ignitis Group is actively pursuing venture investments, including with the World Fund, as part of its enhanced net-zero strategy. Its long-term goal is to establish a 100 per cent green and secure energy ecosystem, not only in Lithuania but also in the broader Baltic region.
Darius Maikštėnas, CEO of Ignitis Group, says, “We are pleased to further our net-zero commitments by investing in climate tech through venture capital. We clearly see that this asset class is crucial for the energy sector in order to meet the EU climate and our strategy targets as well as maintain competitive advantage.”
“We conducted an 18-month research and public tender process, where World Fund stood out among a competitive group of VCs due to its clear investment and climate methodology, ability to attract climate-focused investors and experienced team with a background in science, entrepreneurship and venture capital,” adds Maikštėnas.
World Fund says climate tech startup founders can be assured that the recent influx of capital will directly translate into funding opportunities to support their essential technologies.
Investment in the climate tech sector remains insufficient to meet Europe’s emissions targets. BloombergNEF data, featured in World Fund’s white paper, indicates a need for a 590 per cent annual increase in funding to reach $4.35T annually. Achieving this requires commitment from governments, LPs, and VCs.
The World Fund is actively campaigning for this goal and says it will continue to play a pivotal role in advocating for increased investment in climate tech to combat climate change effectively.
Helping to decarbonise the global economy
Founded in 2021, World Fund claims to be a leading European climate venture capital fund. Its aim is to support entrepreneurs working on technology solutions for a more regenerative and sustainable world.
“As a climate tech VC, we are driven by tackling the climate crisis and only invest in technologies with scalable businesses and significant emissions savings potential. We support startups from the early to growth stage, focusing on energy, food and agriculture, manufacturing, buildings, and mobility,” says the firm.
“Entrepreneurs who understand decarbonisation as a value driver are whom we back; those who think big, act macro; those who build tech for a regenerative world,” adds World Fund.
The fund is supported by a team of professionals, including engineers, physicists, chemists, and biologists, who specialise in early and growth-stage investments.
Brief about Ignitis Group
The Ignitis Group is a utility company with a focus on renewables, particularly offshore wind, onshore hybrid, P2X, and storage technologies.
The company is actively working to expand its green and flexible energy capacity with a goal to achieve 4–5 GW of installed capacity by 2030.
Ignitis Group aims to contribute to Europe’s decarbonisation efforts and regional energy security. They have set a target to reach net-zero emissions between 2040 and 2050, demonstrating their dedication to sustainability and environmental goals.
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