SET Ventures has successfully closed its fourth fund at €200 million, doubling the size of its previous fund. With a focus on digital technologies that facilitate the transition to a carbon-free energy system, this fund solidifies SET Ventures' commitment to driving innovation in the renewable energy sector. By investing in European startups with digital-first, data-driven solutions, SET Ventures aims to accelerate the widespread adoption of renewable energy technologies and support the energy transition.

Focus on Digital Solutions for Renewable Energy

The new fund, dubbed SET Fund IV, will target entrepreneurs developing innovative business models that integrate renewable energy into mass markets. The firm recognizes that while hardware technologies like solar panels and electric vehicles have reached maturity, the challenge now is to implement digital solutions that enable their large-scale deployment and integration into the energy grid. These solutions are crucial in addressing systemic challenges such as grid congestion, fluctuating demand, and the storage of intermittent renewable energy.

Strategic Vision and Commitment

SET Ventures, founded in 2007, has long been a pioneer in clean energy investment. Its focus has always been on technologies that promote the decentralization of the energy system and enhance the flexibility of energy markets. By investing in early-stage and growth-stage companies, the firm is positioning itself at the forefront of a rapidly evolving energy landscape. The goal is to enable a smooth transition away from fossil fuels by leveraging digital innovation to make renewable energy more accessible and adaptable.

The Importance of the Energy Transition

As Europe continues to increase its reliance on renewable energy sources, systemic challenges have emerged, requiring innovative solutions to optimize energy distribution and storage. In 2022, renewable energy accounted for 44% of the EU’s electricity supply, a record high. However, integrating these technologies into the energy system is not without difficulties. Challenges such as mismatched production and demand, along with grid congestion, have become pressing issues as the adoption of renewable energy grows.

According to Anton Arts, Managing Partner at SET Ventures, "Hardware alone cannot achieve the urgent climate goals we face. Digital solutions complementing renewable energy infrastructure are vital to making this transition successful." SET Ventures' approach aims to tackle these challenges by supporting startups working to create technologies that enable efficient energy management and distribution.

Portfolio and Impact

Over its 17 years in operation, SET Ventures has built a robust portfolio of companies that have already made significant contributions to the clean energy sector. Some of its notable investments include Instagrid, which recently raised $95 million in a Series C round and expanded into the North American market, and Sensorfact, a company helping industrial SMEs monitor and optimize their energy usage. The firm also backed sonnen, a leader in residential energy storage systems and virtual power plants.

SET Ventures' track record of success demonstrates its ability to identify and nurture startups that have a lasting impact on the energy landscape. In 2023 alone, the portfolio companies supported by SET Ventures helped avoid 3.3 million tonnes of CO2 emissions. This focus on meaningful, measurable environmental impact has become a hallmark of the firm’s investment strategy.

Investor Support and Fund Structure

SET Fund IV has garnered significant support from both new and returning investors. Notable backers include the European Investment Fund (EIF), Triodos Energy Transition Europe Fund, and several European grid operators. The fund has been designated as an SFDR Article 9 fund, underscoring its commitment to sustainability and impact investing.

So far, SET Fund IV has invested in several promising companies, including vilisto, a smart heat-management startup; Fuchs & Eule, an energy renovation advisory firm; Tibo Energy, which specializes in energy management software; and e-mobilio, a cloud-based e-mobility platform.

SET Ventures’ fourth fund represents a major step forward in accelerating the energy transition in Europe. By focusing on digital technologies that complement existing renewable energy solutions, the firm is addressing the systemic challenges that have emerged as the adoption of renewable energy has grown. With strong backing from a range of investors and a proven track record in clean energy investment, SET Ventures is poised to make a significant impact in the push toward a carbon-free energy future.