After an arduous three-year fundraise, World Fund has successfully closed its first fund at €300 million. Despite falling €50 million short of its initial target in 2021, this achievement is significant amidst a backdrop of war and economic instability. Originating from the creators of the Ecosia search engine, World Fund is dedicated to investing in climate tech startups, with a focus on decarbonization.
Comparative Insights
While World Fund’s €300 million fund is notable, it stands alongside other impactful venture capital initiatives. For instance, Norrsken VC manages a $130 million fund focused on climate solutions, while Demeter Partners recently raised a €250 million fund with a similar climate-centric focus.
Backing and Support
World Fund’s success is bolstered by a coalition of backers, including the European Investment Fund, KfW Capital, Wachstumsfonds, Bpifrance, PwC Germany, NRW.BANK, and Ignitis Group. Additionally, pension funds like the U.K. Environment Agency Pension Fund, Wiltshire Pension Fund, and Croatia’s Erste Plavi have contributed to its funding.
Investment Focus
With its newly secured capital, World Fund aims to make 25-30 investments in European startups focused on decarbonization. Notable investments already include IQM Quantum Computers, Space Forge, Planet A Foods, Juicy Marbles, ENOUGH, CustomCells, Cylib, aedifion, and Ecoworks.
Navigating Challenges
World Fund’s achievement is particularly commendable amidst challenges such as war, interest rate fluctuations, and investor apprehension. Fund managing partner Danijel Višević acknowledges the difficulty of fundraising in such conditions, emphasizing the fund’s commitment to decarbonization technologies.
Strategic Emphasis on Hardware
Recognizing the importance of hardware in climate solutions, World Fund prioritizes investments in this area. Višević underscores Europe’s need to focus more on hardware for climate initiatives and highlights the fund’s investment in technical expertise to evaluate such opportunities.
Opportune Timing
World Fund’s successful fundraise coincides with a thriving climate tech landscape in Europe. Despite global uncertainties, European climate tech startups raised over $20 billion in 2023, showcasing
the sector’s resilience and growth potential. Key countries leading in climate tech VC include the U.K., Sweden, and Germany, with emerging growth seen in nations like Iceland, Lithuania, and Bulgaria.
Continued Momentum
As Europe intensifies its focus on climate solutions, World Fund remains poised to drive innovation in the sector. With its base in Berlin and offices across strategic European cities, the fund is well-positioned to nurture
and support the next generation of climate tech pioneers. Founded in 2021, World Fund is primed to play a pivotal role in shaping Europe’s climate tech landscape for years to come.
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