Ignitis Group backs climate tech VC World Fund
Ignitis Group, an integrated renewable energy company, has backedWorld Fund, which invests in start-ups offering energy and climate change solutions, together with other institutional investors. Ignitis Group is now launching its second phase of investments in innovation through venture capital funds. In total, Ignitis Group will invest around €25 million in World Fund.
“We are pleased to further our net-zero commitments by investing in climate tech through venture capital. We clearly see that this asset class is crucial for the energy sector in order to meet EU climate and our strategy targets as well as maintain competitive advantage. We conducted an 18-month research and public tender process, where World Fund stood out among a competitive group of VCs due to its clear investment and climate methodology, ability to attract climate-focused investors and experienced team with a background in science, entrepreneurship and venture capital.” – says Darius Maikštėnas, CEO of Ignitis Group.
At this stage, Ignitis Group is investing in World Fund together with KfW Capital, the largest national development bank in the world, and other institutional investors.
“We see this as a strong signal for climate tech in Europe, especially against the backdrop of the venture capital slowdown,” says Daria Saharova, one of the Managing Partners of World Fund.
In the first half of 2023, the investment environment for climate tech looked dire - the levels of capital being invested and deployed across the sector dropped 57.6 per cent between Q1 2022 and Q1 2023. This development came as interest rates soared, and Europe entered a broader inflationary and recessionary environment.
Ignitis Group's decision to invest in a second venture capital fund was based on the strong performance of the first fund established in 2017 and the ambitious goal of achieving a zero-emissions balance by 2040-2050. The first fund, Smart Energy Fund powered by Ignitis group, managed by Contrarian Ventures, has already generated a return of €15.6 million this year, compared to a total investment of around €11 million by the Group.
World Fund is the leading Europe-focused climate venture capital fund established by Daria Saharova, Danijel Višević, Craig Douglas, and Tim Schumacher. From energy, food, agriculture, and land use, to building materials, manufacturing and transport, World Fund is investing in European tech with significant climate performance potential (CPP). The investment team comprises engineers, physicists, chemists, biologists, early and growth stage investors. World Fund is backing those entrepreneurs who are building tech for a regenerative world.
