- World Fund, a European climate tech investor, has closed its first fund at €300 million to back climate tech start-ups.
- The fund has received investments from various sources including the European Investment Fund, KfW Capital, BPI France, and PwC Germany.
- World Fund will focus on investing in companies that can significantly reduce carbon emissions across various sectors.
- The fund will target start-ups at seed and Series A stages, with provisions for follow-on investments and addressing the “Series B valley of death.”
- The team at World Fund includes individuals with engineering and science backgrounds to aid in vetting investments that align with emission reduction goals.
World Fund Closes First Fund At Over $300 Million To Back Climate Tech
World Fund, the European climate tech investor, has successfully closed its first fund at over $300 million, signaling a strong commitment to backing innovative companies focused on combating climate change. The fund, based in Berlin, has attracted a diverse group of investors, including the European Investment Fund, KfW Capital, BPI France, PwC Germany, and several pension funds. This significant milestone marks the beginning of a new chapter for World Fund as it gears up to accelerate its investments in the climate tech sector.
Fundraising Challenges Amid Tech Downturn
Raising the capital for the €300 million fund was no easy feat, especially against the backdrop of a challenging tech landscape over the past two years. Managing partner Danijel Višević acknowledged the difficulties faced during the fundraising process, citing the impact of global events such as the war in Ukraine and rising interest rates. Despite these challenges, World Fund managed to secure investments from high net worth individuals and institutional investors like the European Investment Fund. Višević highlighted the resilience of the fund in navigating through turbulent times to close the fund successfully.
Investment Strategy and Focus
With its substantial fund now in place, World Fund is poised to concentrate on investing in startups that have the potential to make a significant impact on reducing carbon emissions. The fund’s investment strategy is not limited to specific sectors but is centered around supporting companies that can effectively decrease emissions within their industries. World Fund has already made strategic investments in promising startups like Planet A Foods in the food sector and IQM Quantum Computers in the quantum computing space. By targeting companies at the seed and Series A stages, World Fund aims to provide crucial support for early-stage ventures and nurture their growth.
Related Video
Managing partner Danijel Višević emphasized the importance of addressing the “Series B valley of death,” a critical stage where many startups face challenges due to a lack of sufficient capital for scaling. He underscored the significance of having follow-on investments available to support companies through this crucial phase of growth. Višević also highlighted the need for a greater understanding and investment in hardware-based solutions, noting that Europe’s focus on software has sometimes hindered the scalability of innovative technologies. World Fund’s team, comprising individuals with diverse expertise in engineering and science, plays a vital role in evaluating potential investments and ensuring a rigorous due diligence process focused on emission reduction capabilities.
Future Outlook and Expansion Plans
Looking ahead, World Fund aims to make between 25 to 30 investments during the lifespan of this fund, demonstrating a proactive approach to supporting a broad range of climate tech startups. The fund’s leadership team, including Daria Saharova, Tim Schumacher, and Craig Douglas, is well-equipped to guide World Fund through its investment journey and drive positive impact in the climate tech sector. As World Fund continues to expand its portfolio and nurture innovative solutions to combat climate change, it remains committed to fostering a sustainable future through strategic investments and partnerships.
Links to additional Resources: 1. https://www.worldfund.com/ 2. https://www.eic.org/ 3. https://www.climatetechvc.com/