Copenhagen-based Climentum Capital has successfully achieved a €60 million first close for its second fund, dedicated to advancing European climate HardTech. This initial amount, matching the entire size of its predecessor fund, is bolstered by significant commitments from major European institutions. The fund, which targets a final size of €100 million, will continue to back companies developing solutions to enhance the continent's industrial resilience, sustainability, and global competitiveness.
Strategic Backing in a Challenging Market
The new fund is anchored by a €40 million commitment from the European Investment Fund (EIF), alongside €15 million from Denmark’s Export and Investment Fund (EIFO) and €5 million from the Danish Society of Engineers (IDA). Morten Halborg, General Partner at Climentum Capital, noted the difficult fundraising environment, stating that the investor syndicate reflects "informed conviction, not momentum investing." This composition underscores the strategic belief in the fund's mission despite market headwinds.
This successful first close arrives as geopolitical instability and fragile supply chains highlight the urgent need for industrial self-sufficiency and energy security in Europe. The ongoing war in Ukraine and pressure on energy markets have reinforced the necessity for patient capital in the climate HardTech sector. Climentum's focus directly addresses these challenges by fostering technologies that can build a more resilient and sovereign European industrial base.
A Focus on Industrial Decarbonisation
Climentum Capital Fund II will primarily invest in Seed and Series A companies developing tangible hardware and DeepTech solutions. The firm plans to make approximately 20 investments in startups across the energy, industry, transport, and agriculture sectors. Its geographical focus will be on key innovation hubs, particularly within Denmark, Sweden, Germany, Austria, and Switzerland.
Structured as an Article 9 fund, the vehicle employs a dual carry model that links the firm's financial success to both investment returns and verified CO₂ reductions. The fund aims to support companies whose technologies can collectively reduce carbon emissions by around 1.5 million tonnes per year. This impact is equivalent to removing the annual emissions from 350,000 gasoline-powered cars, demonstrating a clear commitment to measurable climate action.
Key Stakeholders on Europe's Green Transition
EIF Deputy Chief Executive Merete Clausen emphasized that the fund addresses a critical financing gap for entrepreneurs building real-world climate solutions. The EIF's investment, supported by the RCR-REPowerEU mandate, aligns with the European Union's broader goals of achieving climate neutrality by 2050. This backing is part of a wider push to mobilize private capital for high-impact, early-stage companies vital for Europe's green transition.
Danish stakeholders also highlighted the fund's strategic importance. EIFO's Chief Investment Officer, Erik Balck Sørensen, stated the investment helps scale underfunded technologies essential for Europe's climate ambitions and strategic independence. In an unconventional move, IDA President Laura Klitgaard explained the trade union's investment as a way to "turn words into action" and inspire others to support the talent and research building Europe's future technology companies.
With its €60 million first close, Climentum Capital Fund II is strongly positioned to accelerate the growth of critical climate technologies across Europe. The fund's strategic focus and the backing of prominent institutional investors signal robust confidence in the HardTech sector's ability to solve pressing industrial and environmental challenges. This initiative represents a significant step toward building a more sustainable, competitive, and resilient European economy for the future.