Climatetech venture capital firm Clean Growth Fund (CGF) has secured a third of its £150 million goal, focusing on startups that aim to reduce greenhouse gas emissions and accelerate net zero innovation.
Launched in 2020, CGF invests in early-stage UK startups that either cut greenhouse gas emissions or enhance resource efficiency.
CGF announced that its Fund 2 has accumulated £49 million of its £150 million target.
Fund 2 is designed to issue initial investments ranging from £500k to £5 million, targeting breakthroughs in six key sectors: power and energy systems, transport and mobility, industrial decarbonisation, buildings and the built environment, agrifood and land use, and the circular economy, waste, and water.
Two previous CGF investors, including Strathclyde Pension Fund, have committed to Fund 2, joined by new investors such as Islington Pension Fund and East Riding LGPS, according to CGF.
CGF’s Fund 1 supported 19 climate tech startups now expected to cut over 55 million tonnes of CO2e (carbon dioxide equivalent) by 2030, as CGF reported.
These startups include Sunswap, which develops zero-emission transport refrigeration units; Rendesco, a provider of low-carbon ground-source heat networks; and Above, a robotics company assisting the solar industry in developing more efficient plants.
“Raising capital in this market isn’t easy, especially with global political uncertainty affecting climate policy momentum,” stated Beverley Gower-Jones, managing partner at CGF.
“Despite this, the UK continues to stand out as a hub for climate innovation – and the strong first close of Fund II reflects the trust our investors place in our team and our mission.”