Venture Capital Firms Focus on Green Startups in Europe
Amsterdam, Monday, 29 September 2025.
Venture capital firms are increasingly investing in green startups across Europe, with EDF Pulse Ventures investing €500 million since 2017. This trend highlights a shift towards climate tech and circular economy sectors.
Shifting Investment Strategies
The focus on green startups by venture capital firms represents a broader shift in investment strategies aimed at addressing climate change and environmental sustainability. EDF Pulse Ventures has been a significant player in this space, investing €500 million since 2017. This move aligns with the growing trend among investors to seek both environmental and financial returns, reflecting a global push towards sustainable development [1].
Key Players in Green Investment
Several venture capital firms are leading the charge in green investments across Europe. SET Ventures, based in Amsterdam, has developed a robust energy portfolio with companies like Optics11 and Sensorfact. They closed their Fund IV at €200 million in September 2024, highlighting their commitment to energy innovation [2]. In London, Kiko Ventures focuses on climate tech, investing in startups such as Mantle8 and AirForestry, demonstrating a strong interest in transformative technologies [1].
Emerging Opportunities in the Netherlands
The Netherlands has emerged as a fertile ground for green startups, attracting venture capitalists eager to support innovative solutions in climate tech. The country’s emphasis on sustainable development and its strategic location make it an attractive destination for investors. This trend is evident in the activities of firms like Rockstart Energy Fund, which supports energy startups through its accelerator program [1].
Corporate Venturing and Open Innovation
In addition to traditional venture capital firms, many corporations are actively participating in corporate venturing and open innovation, investing in green startups to foster collaboration and accelerate sustainable growth. For instance, Vestas Ventures, the corporate VC of the Danish wind turbine manufacturer Vestas, backs startups like Northvolt, showcasing a commitment to renewable energy solutions [2]. This integration of corporate and venture capital strategies is crucial for scaling sustainable innovations globally.