AENU, a leading European venture capital firm focused on climate technology, has successfully closed its first fund at €170 million, significantly surpassing its original target of €140 million. The fund, which focuses on early-stage investments in the energy transition and carbon economy, represents a major step forward in advancing Europe's climate tech ecosystem. This final close near the hard cap highlights strong investor confidence in AENU's unique approach to climate impact investing.

Surpassing Expectations: €170 Million Raised for Climate Tech

The initial target of €140 million set for AENU’s first fund was exceeded by a substantial margin, with the final fund size reaching €170 million. This oversubscription reflects the increasing interest of institutional investors in the intersection of market-rate returns and climate impact. Investors backing the fund include prominent institutions such as the European Investment Fund (EIF), KfW Capital, Rentenbank, and Bertelsmann. Additionally, serial entrepreneurs and family offices like E.R. Capital Holding also joined the round, further endorsing the fund’s potential. Noteworthy investors include well-known figures such as Lawrence Leuschner, founder of TIER, Anna Alex, co-founder of Planetly, and Michael Wax, co-founder of Forto.

A Research-Led Investment Strategy

AENU’s investment strategy is rooted in a research-led, science-based approach, distinguishing it from other venture capital funds. The firm regularly conducts deep dives into specific subcategories of the energy transition and carbon economy, allowing it to develop targeted investment theses. Examples of these research projects include carbon removal through direct air capture and mineralization, energy flexibility behind the meter, and climate risk analytics. This approach enables AENU to identify high-potential companies and provide valuable insights into market trends, with nearly 70% of its investments sourced through outbound deal sourcing driven by these deep dives.

Impact-as-a-Service: A Unique Value Proposition

AENU’s value proposition extends beyond financial capital, offering what it terms "Impact-as-a-Service" to its portfolio companies. This service includes impact measurement, lifecycle assessments (LCAs), and readiness for regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD). The firm’s commitment to supporting climate-focused startups is further demonstrated by its entrepreneurial sparring, providing strategic and operational guidance from seasoned entrepreneurs who have built unicorn companies. This combination of research, entrepreneurial support, and impact-driven methodology sets AENU apart in the venture capital landscape.

Notable Portfolio Companies

AENU has already made significant strides in building a portfolio of companies that contribute to solving the climate crisis. Among its notable investments is Alcemy, a Berlin-based startup using data-driven technology to optimize concrete production, resulting in substantial CO2 reductions in the construction industry. Monta, a Copenhagen-based company, offers software solutions for managing electric vehicle charging infrastructure, supporting the energy transition. Another standout, Trawa, specializes in intelligent energy measurement and optimization for industrial applications, helping reduce energy consumption. Ocell, based in Munich, develops solutions for real-time CO2 emission monitoring, aiding companies in achieving their climate goals. HomeTree, a London-based company, focuses on installing and maintaining energy-efficient heating systems for homeowners, contributing to the decarbonization of homes.

Since its inception, AENU has invested in over 20 companies, with nine of these already achieving successful up-rounds. The fund's investments span across Northern Europe, with a particular focus on Germany, the UK, Denmark, and Sweden.

Shifting from Evergreen to Traditional Fund Structures

AENU was initially launched in 2022 as an evergreen fund, to provide long-term support to climate tech companies from the seed stage to IPO. However, due to the challenging market environment and a lack of appetite among institutional investors for unconventional fund structures, AENU pivoted away from its evergreen model. This shift allowed the firm to attract a broader base of investors and meet the growing demand for climate-focused venture capital.

The evergreen model, which AENU had championed, offered innovative liquidity options for investors and sought to democratize the venture capital asset class by allowing shares to be sold quarterly. The firm also envisioned carried interest being paid in equity rather than capital, encouraging long-term alignment between investors and portfolio companies. Despite the current pivot, AENU’s founder, Fabian Heilemann, remains hopeful that the firm can return to this model in future fund generations.

A Collaborative Approach to Climate Tech Investing

AENU has positioned itself as a collaborative force within the climate tech venture capital ecosystem. The firm works closely with NGOs such as Leaders for Climate Action, Founder’s Pledge, and the Clean Air Task Force to advance climate solutions. The fund's leadership team, including Fabian and Ferry Heilemann, is committed to maximizing impact by backing companies that have the potential to reduce and remove millions of tons of CO2 at scale.

The firm’s collaborative spirit extends to co-investments with other venture capital firms. AENU has partnered with firms such as Balderton and LocalGlobe, particularly in software-focused deals. The firm’s expertise in impact methodology, led by principal Melina Sánchez Montañés, has been recognized by co-investors and founders alike, reinforcing AENU’s reputation as a leader in climate tech investing.

AENU’s successful €170 million fund close marks a significant milestone in the European climate tech investment landscape. By focusing on early-stage investments in energy transition and the carbon economy, the fund is poised to play a key role in driving innovation and systemic transformation. With a unique research-led investment approach, strong investor backing, and a commitment to impact, AENU is well-positioned to lead the next generation of climate tech ventures in Europe.