Ecosia launches fund for climate technology

Innovation is needed to combat climate change. But in Europe, as always, there is a lack of venture capital. A new fund wants to change this.

Green investments are currently in vogue, but at the same time the greenwashing method does not stop at the financial market. The new climate tech fund World Fund, set up by the search engine Ecosia, now wants to apply its own principles and is basing its investments on climate performance potential (CPP). In future, 350 million euros will be invested in early and growth-stage start-ups in the energy, transport, construction, food and agriculture sectors. Half of the sum has already been raised and the first closing is planned for spring 2022.

The initiators include well-known names such as Daria Saharova, who led the venture capitalist Vito One, and Tim Schumacher, investor and founder of Eyeo and the Sedo platform, for example. In addition, Danijel Višević, who worked at Ecosia and looks back on a career as an advisor to the German government and helped set up the European venture capitalist Project A. Another investor in the round is Craig Douglas from the UK, who previously worked at the climate fund Set Ventures in the Netherlands. Ecosia CEO Christian Kroll is one of the fund's venture partners. The advisory board consists of scientists.

The World Fund has developed its own methodology for auditing the CPP. According to the initiators of the fund, the main focus will be on companies with the potential to become market leaders. By 2040, two gigatons of emissions are to be saved through investments in technological innovations. Each company supported by the World Fund must prove that it saves at least 100 megatons of CO2 per year.

The initiators criticize the lack of venture capital for climate technology in Europe. According to their own statements, they have now established the largest European fund for climate technology with the World Fund: "Start-ups that deal with climate change need equity-rich funds and commitment that supports dynamic companies in order to realize their potential," says Saharova.