NextSTEP, the London-based venture capital fund focused on supporting CleanTech innovation, has announced an ambitious move to allocate €1.6 million for 16 new investments in 2025.
This decision follows the fund’s initial success, having closed 17 investments and raising €2 million since its inception in 2022. NextSTEP’s strategy is aimed at advancing startups across key sectors, including renewable energy, sustainable mobility, circular economy, waste management, water efficiency, and agritech.
“It is highly likely that the cleantech sector will experience significant growth in the UK and worldwide over the coming months. Record investments in climate-focused funds are expected to surpass previous levels, driven by specialised VC funds, with London maintaining its role as a global financial hub. Public-private partnerships will drive innovation, as governments collaborate with VCs to fund high-impact solutions for climate change. We will also see an increase in SPACs and IPOs as more cleantech startups go public, reflecting growing confidence in sustainable technologies with strong unit economics,” said Claudio Colombo, Managing Director of NextSTEP.
Founded in 2022 by Claudio Colombo as part of the NextEnergy Group, NextSTEP focuses on nurturing CleanTech startups at the pre-seed and seed stages, primarily in Italy, the UK, and beyond, including other parts of Europe and the US.
The fund actively seeks opportunities emerging from incubators, accelerators, universities, and research centres. It also maintains an opportunity fund to invest in more advanced-stage ventures and collaborates with companies to develop bespoke open innovation programmes, aligning with businesses that demonstrate strong commitments to environmental sustainability.
The announcement comes at a time when the global cleantech sector is experiencing significant growth. According to NextSTEP, €1.7 trillion was invested in energy transition efforts worldwide in 2023, marking a 17% increase from the previous year.
In Europe, cleantech investments in the energy sector accounted for 41% of total funding in Q3 2024, amounting to €1.4 billion, with notable growth in AgriTech investments rising from 7% in Q2 to 17% in Q3.
NextSTEP’s Managing Director, Claudio Colombo, highlighted the transformative opportunities in cleantech and shared four key predictions for the sector:
- Cleantech startups are set for exponential growth, attracting record investments, particularly in pre-Seed and Seed stages, as sustainability becomes a top priority for businesses and governments alike.
- AI-powered solutions will accelerate progress in areas such as energy efficiency,
water management and renewable energy infrastructure. - Green hydrogen is approaching significant breakthroughs, with declining production
costs paving the way for large-scale applications and innovations in energy storage. - Carbon management startups focusing on carbon capture, storage and utilisation
(CCUS) will secure substantial funding as companies intensify efforts to meet net-zero
targets.
According to Colombo, the widespread adoption of distributed energy solutions will help communities lower energy costs, next-generation batteries will revolutionise the market, and EV infrastructure expansion will address “charging deserts,” creating opportunities for startups in the electric vehicle space.
NextSTEP’s 2025 plans are not just a response to the sector’s rapid growth but a signal of confidence in the potential of cleantech startups to tackle global sustainability challenges while delivering strong returns.
“Overall 2025 will be a year of transformation not just for NextSTEP, but for cleantech as a whole, as government policies, investment capital and innovation hubs converge to scale solutions for a sustainable future,” concluded Colombo.
Read the orginal article: https://www.eu-startups.com/2025/01/vc-nextstep-allocates-e1-6-million-to-fuel-cleantech-growth-in-2025/
