Danish investment firm Climentum Capital has raised €60 million in a first close for its second climate tech fund, backed by the European Investment Fund (EIF), Denmark's export and investment fund EIFO, and the Danish Society of Engineers (IDA), to invest in early-stage climate technology startups across Europe.
Developing new climate technologies requires patient, long-term investors willing to support companies long before they become commercially established.
Climentum Capital backs hard tech companies that strengthen Europe's industrial resilience, sustainability and competitiveness. With teams based throughout the Nordics and Germany, we lead Seed and Series A rounds in companies addressing energy security, industrial efficiency, and supply chain sovereignty. Fund I launched in 2022 at €60 million. Fund II targets up to €100 million. With commitments from EIF, EIFO and IDA, Climentum Capital Fund II has reached a first close of €60 million.
According to Morten Halborg, General Partner, Climentum Capital:
"The fundraising environment for early-stage climate hard tech has not been easy in recent years. Investors are more selective, timelines are longer, and the proof bar is higher.
That is why the composition of the Fund II launch matters: our investor syndicate reflects informed conviction, not momentum investing."
The fund expects to make around 20 investments and will invest primarily in Seed and Series A companies developing hardware and deep tech solutions for energy, industry, transport, and agriculture. Its focus is on businesses that strengthen energy security, improve industrial efficiency and accelerate industrial decarbonisation, particularly in Denmark, Sweden, Germany, Austria and Switzerland.
“Europe has excellent research and business ideas,” said EIF Deputy Chief Executive Merete Clausen.
“To build on these, it needs investors willing to back companies developing the industrial technologies that will shape the next generation of clean growth. Climentum Capital Fund II addresses an important financing gap by supporting entrepreneurs building climate solutions for the real economy.”
Founded in Copenhagen in 2022, Climentum Capital specialises in early-stage investments in businesses developing technologies that can reduce the carbon footprint of sectors responsible for a large share of Europe's greenhouse gas emissions. While climate tech companies in Europe offer growing hope of stepping up the fight against climate change, fundraising has been held back by higher interest rates, a tougher exit environment, and broad macroeconomic and geopolitical uncertainty.
Fund II aims to support companies whose technology products can reduce carbon dioxide (CO₂) emissions by approximately 1.5 million tonnes a year – equivalent to the emissions from 350 000 gasoline-powered cars driven for one year.
“EIFO's mission is to accelerate the green transition while strengthening Europe's strategic independence,” said EIFO Chief Investment Officer Erik Balck Sørensen.
“Through our investment in Climentum Capital Fund II, we are helping to scale critical, yet significantly underfunded, climate technologies that are essential to reducing carbon emissions across European industry and achieving Europe's climate ambitions.”
The Danish Society of Engineers (IDA), which represents more than 180 000 engineers, scientists and IT professionals, says access to capital remains one of the biggest barriers facing climate-tech entrepreneurs and has invested in Climentum Capital Fund II to help strengthen Europe's innovation ecosystem.
"We cannot keep talking. We need to turn words into action. Europe needs more competitive technology companies, and Denmark has the ideas, the talent and the research to build them. I see this potential every day among our members. It is unusual for a trade union to become an investor, but I hope IDA can lead by example and inspire others to follow," said IDA President Laura Klitgaard.
The EIF investment is supported by the RCR-REPowerEU mandate and advances the European Union's goal of becoming climate-neutral by 2050 while helping to reduce Europe's dependence on imported fossil fuels.
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