Danish Climate VC Climentum Capital Raises €60 Million for Fund II

Climentum Capital Secures €60 Million for Second Fund, Focused on European Climate HardTech Companies

Copenhagen-based Climentum Capital has successfully closed the first round of its second fund, raising a total of €60 million. This amount matches the size of its initial fund, demonstrating the firm’s commitment to supporting European climate HardTech companies. These companies aim to enhance the continent’s industrial resilience, sustainability, and competitiveness.

The fund received significant backing from various investors, including the European Investment Fund (EIF) with a commitment of €40 million, Denmark’s Export and Investment Fund (EIFO) with €15 million, and the Danish Society of Engineers (IDA) with €5 million.

Morten Halborg, General Partner at Climentum Capital, emphasized the challenges in the fundraising environment for early-stage climate HardTech companies. He highlighted the importance of having an investor syndicate that is driven by informed conviction rather than mere momentum investing.

EIF Deputy Chief Executive Merete Clausen praised Europe’s research and business ideas, emphasizing the need for investors to support companies developing industrial technologies for clean growth. Climentum Capital Fund II aims to bridge this financing gap by backing entrepreneurs focused on climate solutions for the real economy.

Founded in 2022, Climentum Capital specializes in supporting HardTech companies that contribute to reducing Europe’s carbon footprint. The firm’s first fund, also totaling €60 million, has already seen a successful exit with Studsvik acquiring KNXT within three years of Climentum’s initial investment.

Focus Areas and Goals of Climentum Capital Fund II

Climentum Capital Fund II, targeting up to €100 million, will primarily invest in Seed and Series A companies developing hardware and DeepTech solutions in energy, industry, transport, and agriculture sectors. The fund will concentrate on areas such as energy security, industrial efficiency, supply chain sovereignty, and industrial decarbonization.

The structure of the new fund as an Article 9 fund incorporates a dual carry model, aligning the firm’s incentives with both financial returns and verified CO₂ savings. Climentum Capital Fund II aims to support companies capable of reducing CO₂ emissions by approximately 1.5 million tonnes annually.

Erik Balck Sørensen, Chief Investment Officer at EIFO, highlighted the fund’s role in accelerating the green transition and supporting critical climate technologies that are essential for reducing carbon emissions across European industries.

European Context and Investment Support

Climentum Capital underscored the increasing need for patient capital in climate HardTech, citing Europe’s evolving geopolitical and industrial landscape. The firm emphasized factors such as the conflict in Ukraine, energy market pressures, and supply chain vulnerabilities as reasons for prioritizing industrial resilience and energy security.

The EIF investment, supported by the RCR-REPowerEU mandate, aligns with the European Union’s goal of achieving climate neutrality by 2050 and reducing dependence on imported fossil fuels. The investment also aims to mobilize private capital for early-stage companies developing technologies to support Europe’s green transition and industrial competitiveness.

Laura Klitgaard, President of IDA, highlighted the significance of investing in competitive technology companies to drive Europe’s green transition. She emphasized Denmark’s potential in innovation and research, expressing IDA’s commitment to inspiring similar investments.

Climentum Capital’s Investment Strategy and Impact

Climentum Capital, operating from Fund II with teams in the Nordics and Germany, plans to make around 20 investments. The firm focuses on leading Seed and Series A rounds in European B2B HardTech startups that combine climate impact with strong business fundamentals.

The overarching goal remains to support companies that contribute to a more sustainable, resilient, and competitive industrial base in Europe. Climentum Capital’s local presence enables it to identify aligned opportunities, assess beyond technological aspects, and provide post-investment support to founders.