Pale Blue Dot, a young Malmö, Sweden-based investment firm focused on backing climate tech innovations, has closed their fund at €87 million after raising an initial €53 million last year.
Interestingly, the final close comes a mere 18 months after the firm started to fundraise, which is quite impressive and speaks to the fact that sustainability and climate tech investments in Europe and beyond are heating up.
Investors in the new fund top-up include Prima Materia, the investment firm founded by Spotify CEO Daniel Ek and Shakil Khan, Pirates Impact, as well as the founders of companies like Contentful, Delivery Hero and Wise.
Pale Blue Dot has a pretty singular focus on climate tech, as it considers Europe to be well positioned to lead in this area due to government regulation and policy efforts around climate change, corporations left and right pledging to become carbon neutral, founders and potential co-investors alike becoming more sustainability-minded, as well as due to surging consumer demand for solutions.
That said, the firm points out that it's not really a vertical as such, as companies with a positive climate impact can be found across a wide variety of sectors, including energy, food & agriculture and mobility of course, but also fashion, fintech, proptech and so on.
Pale Blue Dot says will invest in 35 early-stage climate tech companies across Europe and the US, preferably taking the lead at the seed stage with tickets ranging from €200,000 to €2 million.
"We’re happy to see the great interest in investing in climate by people who see that a sustainable world is a good investment, and to see the backing by influential people from the startup scene makes us optimistic about the future," said Hampus Jakobsson, general partner of the young investment firm.
"We look for great people who are solving big problems within climate using technology. Great founders with big ideas can come from anywhere. We’re excited to back future founders who are helping to build the solutions that we so urgently need," added Heidi Lindvall, also a general partner at Pale Blue Dot.