TLDR:
- World Fund, a European climate technology investor, closed a $325 million fund to support startups tackling climate change.
- Investors are reeling from riskier tech bets due to rising inflation and interest rates.
In the challenging environment of technology investing, World Fund’s $325 million venture fund aims to help smaller climate startups facing a “valley of death” in funding. With investors cautious after the Russia-Ukraine war, World Fund seeks to bridge the gap for firms in the Series B stage that struggle to scale their operations. Despite pushback from institutional investors, World Fund secured commitments from the European Investment Fund, U.K. Environment Agency Pension fund, and others. The VC firm plans to invest in startups at the early stages and provide follow-on funding to ensure the growth and development of climate tech companies. While many sectors saw a decline in valuations, the fund’s portfolio remained strong, offering a lifeline to startups navigating the challenges of tech investing in a turbulent economic landscape.
