Clean Growth Fund raises one-third of £150M fund target

Climatetech VC fund Clean Grown Fund (CGF) has raised a third of its £150m target as it looks back startups aimed at cutting greenhouse gas emissions and speeding up net zero innovation.

CGF is a VC fund set up in 2020 which invests in UK-based early-stage startups that cut greenhouse gas emissions or improve resource efficiency.

CGF says its Fund 2 has now raised £49m of its £150m target. 

Fund 2 deploys initial cheques of £500k to £5 million, targeting innovations across six core areas: power and energy systems; transport and mobility; industrial decarbonisation; buildings and the built environment; agrifood and land use; circular economy, waste and water.

Two of CGF’s previous investors, including Strathclyde Pension Fund, have committed to Fund 2, which is also joined by new investors Islington Pension Fund and East Riding LGPS, CGF said.

CGF’s Fund 1 invested in 19 climate tech startups now projected to reduce over 55 million tonnes of CO2e (carbon dioxide equivalent) by 2030, said CGF. 

These include Sunswap, the developer of zero-emission transport refrigeration units: Rendesco, provider of low-carbon ground-source heat networks, and Above, a robotics firm aimed at helping the solar industry build higher-performing plants.  

“Raising capital in this market isn’t easy, especially with global political uncertainty affecting climate policy momentum” said Beverley Gower-Jones, managing partner, 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.” 

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