Search engine Ecosia has recently announced it has launched a new venture capital (VC) fund that has raised €350 million ($406 million) in funding.
Target: Save 2 Gigatons of CO2 Emissions by 2040
The newly-launched “World Fund” will focus on entrepreneurs and startup founders around the world who have innovative business ideas to tackle climate change and help decarbonize our planet.
More than 60 business investors provided capital for the VC fund. Some of these include current and former tech startup founders from Europe and several institutional Limited Partners (LPs). The VC fund claims to be the largest tech fund of its kind in the world.
The focus will be on providing startup funding across sectors like energy, transport, food and agriculture, manufacturing, and construction. A special focus will be on the climate change fight within cities as they consume more than two-thirds of the planet’s energy. The World Fund’s target is to save two gigatons of CO2 emissions by 2040, which represents 4% of all global emissions. Ecosia has a separate project that has so far yielded 136 million planted trees globally.
The climate crisis continues to be one of the most pressing issues in the world. The CO2 emissions need to be reduced by 50% before 2030 in order for the planet to prevent 1.5 degrees of warming, which represents a difficult task.
In order to track this objective, one of the key metrics to follow is the so-called “Climate Performance Potential” (CPP). Each company that the World Fund invests in will need to prove that it is capable of cutting greenhouse gas emissions by a minimum of 100 megatonnes CO2e per year, the VC fund said.
This is because “only companies enabling a decarbonized world can become the most valuable companies of the next decade,” the VC fund added.
“Europe urgently needs to stop continuing business as usual, relying on the continued use of fossil fuels. This continent has the research, innovation, and political awareness to lead the world in the fight against climate change. However, until now, there hasn’t been the venture support to ensure these solutions go from idea to success,” said Danijel Višević, a general partner at the World Fund.
Višević said that the World Fund would be a tech entrepreneurs’ ultimate business partner to contribute to create the most valuable companies focused on tackling the climate crisis within the next ten years.
This year, tech startup companies fighting climate change have collectively raised a record-breaking $32 billion to date in funding, according to the Dealroom and London & Partners's report. The amount of VC funds invested into climate tech this year is already larger than the whole of last year. Moreover, investments deployed into climate tech have increased fourfold since 2016.
“The tech industry plays a fundamentally important role in helping drive forward innovation in the fight against climate change,” said Laura Citron, CEO at London & Partners, in a statement.
Search engine Ecosia said today it has launched a new $406 million VC fund focused on providing funding for tech startup companies that are fighting climate change. More than 60 European entrepreneurs and tech startup founders have provided business funding for the new VC fund.