German-based climate VC World Fund has raised a €300M fund to make substantial investments into European tech startups, developing technologies that can potentially decarbonise entire industries.
World Fund‘s €300M first fund is the largest ever first fund created in the EU. The fund’s major investors include EIF, KfW Capital, BPI France, PwC Germany, Wiltshire Pension Fund, the UK Environment Agency Pension Fund, Croatia’s Erste Plavi, and Ecosia.
The raised capital will enable the World Fund to offer support for early and growth-stage climate tech disruptors. It is estimated that €300M will cover about 25-30 investments into European startups that may struggle to overcome their biggest challenge today: the financing gap at the Series B stage.
Earlier, World Fund made 15 investments into market leaders e.g. Planet A Foods, ENOUGH Food, ecoworks, aedifion, IQM Quantum Computers, Space Forge, CustomCells and Cylib.
Some of the LPs who joined the fund have never previously backed first-time VC funds. The milestone illustrates a continued interest in climate tech from institutional investors. The growing institutionalisation of climate capital in Europe is a good signal for tech startups addressing environmental issues.
The European tendency goes in line with global investment trends. In 2023, sustainable tech funding managed to maintain the 2022 investment level on a global scale, despite a significant decrease in startup investment in most industries, and the overall destabilisation of global economies.
Moreover, the trend is forecast to continue in the near future. Thus, the World Bank Group – the biggest provider of climate finance to developing countries – aims to invest 45% of its financing pool (or $40 billion) into climate projects by 2025.
World Fund was founded in 2021. It has offices in Berlin, Munich, Cologne and Amsterdam.
“We are proud that we have been able to attract numerous institutional investors who haven’t ever invested in VC or a first-time fund before, but did now with us. We will work to ensure that our fund demonstrates to the world that successful investments and positive climate impact go hand-in-hand. In this way, we hope to provide a service to the entire climate investment sector.”
Danijel Višević, Managing Partner at World Fund
