Clean Growth Fund Raises £49m in First Close of Second Climate Tech Fund

Clean Growth Fund (CGF), a UK-based venture capital firm specializing in climate technology, has completed the first close of its second fund with £49 million secured toward a £150 million target. The vehicle will focus on early-stage companies developing technologies to support the transition to net zero.

The close includes commitments from returning investors such as Strathclyde Pension Fund, alongside new backers including the Islington and East Riding local government pension schemes. The commitments reflect growing institutional interest in climate technology as an asset class, despite broader fundraising challenges in the venture capital market.

CGF’s first fund invested in 19 companies projected to reduce more than 55 million tonnes of CO2e by 2030. Portfolio companies include Sunswap, a manufacturer of zero-emission refrigeration units; Rendesco, which develops low-carbon ground-source heat networks; and Above, a solar technology company using robotics and artificial intelligence.

Beverley Gower-Jones, managing partner at CGF, said: “Raising capital in the current market is difficult, particularly with uncertainty around global climate policy. However, the UK continues to demonstrate strength in climate innovation, and this first close underlines investor confidence in our approach.”

Fund II will deploy investments of £500,000 to £5 million across six areas: power and energy systems, transport, industrial decarbonization, buildings, agrifood, and the circular economy.

The strategy is consistent with the UK government’s Mansion House Compact, which encourages pension schemes to allocate capital to high-growth domestic sectors. CGF, a certified B Corp, said it will also continue engagement with regional innovation hubs, with its next Climate Tech Roadshow scheduled for September in Glasgow.

Source: cleangrowthfund.com