Danish climate VC Climentum Capital launches Fund II with €60 million first close

Climentum Capital, a climate-focused venture capital firm based in Copenhagen, has announced the first close of its second fund at €60 million, equal to the total size of its first fund. The fund has attracted significant institutional backing: the European Investment Fund (EIF) committed €40 million, Denmark’s Export and Investment Fund (EIFO) added €15 million, and the Danish Society of Engineers (IDA) contributed €5 million.

General Partner Morten Halborg noted that the fundraising environment for early-stage climate HardTech has been challenging in recent years, with investors becoming more selective and demanding longer timelines and higher proof bars. He emphasized that the composition of Fund II’s launch reflects informed conviction, not momentum investing.

EIF Deputy Chief Executive Merete Clausen highlighted that Europe has excellent research and business ideas, but needs investors willing to back companies developing industrial technologies that will shape the next generation of clean growth. She stated that Climentum Capital Fund II addresses an important financing gap by supporting entrepreneurs building climate solutions for the real economy.

Founded in 2022, Climentum Capital backs HardTech companies that can reduce the carbon footprint of sectors responsible for a significant share of Europe’s greenhouse gas emissions. Its first fund, also €60 million, has already delivered a realized exit: Studsvik acquired KNXT less than three years after Climentum’s initial investment, demonstrating the firm’s thesis that strategic industrial players seek capabilities to remain competitive.

Climentum Capital Fund II is targeting up to €100 million and will primarily invest in Seed and Series A companies developing hardware and DeepTech solutions in energy, industry, transport, and agriculture. The fund will focus on energy security, industrial efficiency, supply chain sovereignty, and industrial decarbonization, particularly in Denmark, Sweden, Germany, Austria, and Switzerland.

Structured as an Article 9 fund under the EU sustainable finance framework, Fund II uses a dual carry model that links its economics to both financial returns and verified CO₂ savings. The fund aims to support technologies capable of reducing CO₂ emissions by approximately 1.5 million tonnes per year, equivalent to the annual emissions from 350,000 gasoline-powered cars.

EIFO Chief Investment Officer Erik Balck Sørensen said the investment aligns with EIFO’s mission to accelerate the green transition while strengthening Europe’s strategic independence. He noted that the fund helps scale critical but underfunded climate technologies essential for reducing carbon emissions across European industry.

Climentum pointed to Europe’s changing geopolitical and industrial context—including the war in Ukraine, instability in the Middle East, pressure on energy markets, fragile supply chains, and unpredictable US policy—as factors that have made industrial resilience and energy security more urgent for both strategic and financial reasons.

The EIF investment is supported by the RCR-REPowerEU mandate and contributes to the EU’s target of climate neutrality by 2050, while reducing dependence on imported fossil fuels. It also reflects a broader push to mobilize private investment for high-risk, early-stage companies working on technologies that support Europe’s green transition and industrial competitiveness.

IDA President Laura Klitgaard urged turning words into action, noting that Denmark has the ideas, talent, and research to build competitive technology companies. She expressed hope that IDA, as a trade union, could lead by example and inspire others to become investors.

Climentum expects to make around 20 investments from Fund II, continuing to lead Seed and Series A rounds in European B2B HardTech startups. The firm’s strategy remains focused on companies that combine climate impact with strong business fundamentals, helping Europe rebuild a more sustainable, resilient, and competitive industrial base.