2150 Secures €210M to Tackle Urban Climate Challenges
Urban areas, while being the epicenters of global economic activity, are also significant contributors to environmental issues. Recognizing this, venture capital firm 2150 has successfully raised a €210 million fund aimed at addressing climate challenges within cities.
Jacob Bro, co-founder and partner at 2150, aptly describes cities as entities that, while aggregating 80% of the world’s GDP, are also responsible for 70% of global emissions. This duality underscores the pressing need for sustainable urban solutions.
Unlike many investors who focus broadly on climate change, 2150 zeroes in on urban-specific problems and opportunities. By analyzing the consumption patterns and infrastructural needs of cities, they identify technologies that can alleviate environmental bottlenecks. Bro emphasizes that sustainability, when executed effectively, not only benefits the environment but also enhances business efficiency, making operations cheaper, faster, and less dependent on geopolitical factors.
The recent fundraise saw participation from a diverse group of institutional investors and family funds, including Chr. Augustinus Fabrikker, Church Pension Group, the Danish sovereign fund EIFO, Fund of Funds Carbon Equity, Novo Holdings, Islandbridge Capital, Security Trading Oy, and Viessmann Generations Group. This influx of capital elevates 2150’s total assets under management to €500 million.
Christian Hernandez, another co-founder and partner at 2150, highlighted the substantial contributions from 34 limited partners, noting the significance of their investments.
To date, 2150 has allocated funds to seven companies from this new fund. These include AtmosZero, specializing in industrial heat pumps; GetMobil, an e-waste recycling startup; Metycle, a marketplace for scrap and recyclable metals; and MissionZero, a direct air capture startup. Three additional investments are pending announcement.
The firm plans to invest in a total of 20 companies through this fund, primarily targeting Series A rounds with investments ranging from €5 million to €6 million. Notably, half of the fund is reserved for follow-on investments, ensuring sustained support for portfolio companies.
2150’s investment strategy encompasses a broad spectrum of startups. However, they are particularly interested in sectors like data centers and automation, especially given the recent surge in artificial intelligence applications. Hernandez points out that while AI presents energy-related opportunities, its societal impact is profound. With Europe projected to experience a significant demographic shift, losing 100 million people by 2040 due to aging populations, industrial automation becomes crucial. It offers a means to maintain productivity, generate GDP, and support pension systems amidst a declining workforce.
Bro adds that focusing on industrial applications is logical, as cities rely heavily on both large and small industries for their sustenance.
The firm’s approach appears to be yielding tangible results. In the past year, 2150’s portfolio companies have collectively mitigated one megaton of carbon emissions. Hernandez expresses confidence in their strategy, emphasizing that achieving such a significant impact within four years underscores the effectiveness of their dual focus on sustainability and business viability.
