TLDR:
- World Fund, a European climate technology investor, closed a $325 million venture fund to help climate startups facing a funding gap at the Series B stage.
- The funding was secured despite challenges in the tech investing environment due to factors like inflation and interest rate hikes after the Russia-Ukraine war in 2022.
Venture capital firm World Fund recently announced the closing of a 300 million euro ($325 million) fund aimed at supporting startups addressing climate change. The initiative, backed by the environmentally-conscious search engine Ecosia, comes at a time when many climate startups find themselves struggling to secure funding during the critical Series B stage of financing.
The challenging investment landscape triggered by rising inflation and interest rates following the Russia-Ukraine war in 2022 has made it difficult for tech-related bets, particularly in climate technology. Institutional investors, including the European Investment Fund, U.K. Environment Agency Pension fund, and others, have shown support for the fund despite volatile market conditions.
World Fund’s founding partner, Danijel Višević, highlighted the need for substantial funding to bridge the gap faced by Series B companies to facilitate further growth and scaling. The fund aims to provide initial investments to startups in the early stages and continue to support them through subsequent rounds to ensure steady progress and product development.
Despite economic challenges and decreasing private tech valuations in recent years, World Fund’s portfolio has remained resilient, demonstrating the potential for consistent growth and advancement in the climate tech sector with strategic investment and support.
