Funding

[Funding alert] Amsterdam-based Carbon Equity Secures an Additional €100 Million Funding

Mar 5, 2024 | By Startup Rise EU

Amsterdam-based Carbon Equity secures an additional €100 million funding for climate solutions through its Climate Tech Portfolio Fund II. This more than doubled the size of Fund I, which closed at €42 million in 2022, and surpassed its original goal of €75 million.

Amsterdam-based Carbon Equity secures an additional €100 million funding for climate solutions through its Climate Tech Portfolio Fund II. This more than doubled the size of Fund I, which closed at €42 million in 2022, and surpassed its original goal of €75 million.

In addition to indirectly funding 150–200 vital climate solutions, such as green hydrogen, battery technology, carbon-free cement, (industrial) heat pumps, bioplastics, smart thermostats, and next-generation proteins, the Climate Tech Portfolio Fund II invests in 7–10 carefully chosen private equity and venture capital funds.

Jacqueline van den Ende, Co-Founder and CEO of Carbon Equity, stated: “Through our platform, we pool the capital of private investors, thus offering them the opportunity to invest in a diversified portfolio of unlisted climate companies. Via our fund of funds, they indirectly invest in a selection of 150+ rapidly growing climate technology companies, such as CarbonCure, which captures and stores CO2 in cement, Twelve, which produces renewable kerosene from green electricity, water and air, and Form Energy, which develops advanced energy storage systems. Given the manifold technological pathways within climate solutions, a relatively young landscape of funds and the importance of geographical diversification, a fund of funds in our view is the best way to generate attractive risk adjusted returns when investing in this theme.”

Roland Berger projects that the revenue generated by climate technology would increase from €5 trillion to €12 trillion between 2020 and 2030. Investments in climate technology now account for 10% of all venture capital and private equity transactions in the private markets, up from just 2% in 2014.

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Over the course of less than three years, 700 investors—including family offices, institutional investors, well-known businesspeople, and C-suite executives—have contributed €200 million to Carbon Equity.

van den Ende said, “It shows that the market is maturing quickly, The global commitment to halt climate change offers opportunities for investors. Not just for the ideological investor, but also for the pragmatic investor who wants to realize attractive, risk-adjusted returns as a result of investing inimpactful and fast growing climate innovators. We believe that climate change is not only the most urgent problem facing humanity but solving it is also the most attractive investment opportunity of our generation. Our biggest challenges are also our biggest investment opportunities.”

With the goal of raising €125 million, Carbon Equity is launching the Climate Tech Portfolio Fund III in response to the successful closing of the Climate Tech Portfolio Fund II.

The establishment of Fund III is a continuation of Fund I and Fund II's successful strategies. These funds have already committed to 15 of the top climate funds, including Ara Partners, 2150 VC, Breakthrough Energy Ventures, and Energy Impact Partners, and they have invested in over 100 climate tech companies that have seen multiple early successes.

To further expand access to its funds, Carbon Equity intends to launch its first ELTIF fund later this year with minimums under €100,000. "In the end, anyone with a good salary, pension, children's savings plan, or inheritance can contribute to the creation of value while building a net zero future with their capital," van den Ende said in closing.

About Carbon Equity

The first impact investment platform in the world, Carbon Equity provides investors with low-cost access to top climate private equity funds. They choose the best funds from the 800+ worldwide funds we have discovered, taking into account both financial performance and climate effect. Carbon Equity aims to make a financial difference by serving those who are passionate about the convergence of technology and the environment.

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