Clean Growth Fund (CGF), a London-based venture capital firm focusing on climate technology, has raised €56.8 million for the first close of its second fund, with a target of £150 million (around €174 million). This new funding will support early-stage UK startups in net zero innovation across energy, mobility, and the built environment sectors.
The fundraising follows the success of CGF’s first €117.2 million Fund I in 2020, which backed 19 startups expected to reduce over 55 million tonnes of CO2e by 2030. Notable portfolio companies are:
– Sunswap: A zero-emission transport refrigeration supplier to clients like Tesco and DFDS.
– Rendesco: A leader in low-carbon ground-source heat networks with a €116 million project pipeline.
– Above: A solar infrastructure optimization startup using robotics and AI, with a 50% CAGR revenue increase since 2021.
Investors in Fund II include returning LPs like Strathclyde Pension Fund, with new institutional supporters Islington and East Riding LGPS. Their involvement highlights growing investor alignment with the UK government’s Mansion House Compact, which encourages pension funds to invest in climate innovation and venture capital.
Clean Growth Fund combines strong financial performance with high climate impact, as a certified B Corp with a score of 133.8, one of the highest in the UK VC sector. Led by a team with extensive experience, the partners have collaborated for years, providing insight into sustainable innovation commercialization.
“Raising capital in this market isn’t easy, but the UK remains a hub for climate innovation. The strong first close of Fund II reflects our investors’ trust in our team and mission,” said Beverley Gower-Jones, Managing Partner at Clean Growth Fund.
Fund II will maintain CGF’s focus on early-stage UK companies with high-emission reduction potential. Initial investments will range from €580k to €5.8 million, targeting six core areas: power and energy systems, transport and mobility, industrial decarbonization, buildings and the built environment, agrifood and land use, and the circular economy, waste, and water.
The fund’s expansion includes a national outreach with a Climate Tech Roadshow in Glasgow on 9 September, connecting stakeholders with the investment team.
Investor endorsements reinforce CGF’s stature. “Clean Growth Fund’s clear climate impact and focus on commercial returns made our reinvestment decision simple. The UK needs mission-driven experts like CGF for net zero delivery,” said Ian Jamison, Investment Manager, Strathclyde Pension Fund.