Clean Growth Fund (CGF), a London-based venture capital firm specialising in climate technology, has secured a €56.8 million first close for its second fund, targeting a total of £150 million (around €174 million). This fresh round of capital will enable the firm to continue backing early-stage UK startups working at the forefront of net zero innovation across critical sectors, including energy, mobility and the built environment.
The fundraise, announced today, builds on the success of CGF’s inaugural €117.2 million Fund I launched in 2020. With a focus on impact-led, disciplined investment, Fund I backed 19 startups projected to reduce more than 55 million tonnes of CO2e by 2030. Standout portfolio companies include:
- Sunswap: a zero-emission transport refrigeration to clients like Tesco and DFDS.
- Rendesco: a leader in low-carbon ground-source heat networks with a €116 million project pipeline.
- Above: a solar infrastructure optimisation startup using robotics and AI, which has grown revenue by 50% CAGR since 2021.
Investors in Fund II include returning LPs such as Strathclyde Pension Fund, joined by new institutional backers Islington and East Riding LGPS. Their participation underlines growing investor alignment with the UK government’s Mansion House Compact, which urges pension funds to channel more capital into high-growth sectors like climate innovation and venture capital.
Clean Growth Fund’s approach has won investor favour by combining robust financial performance with high climate impact. The firm is a certified B Corp with a score of 133.8, one of the highest in the UK VC sector, and is led by a team with extensive experience across climate science, technology and finance. The partners have worked together for years, enabling deep collaboration and sharp insight into commercialising sustainable innovation.
“Raising capital in this market isn’t easy, especially with global political uncertainty affecting climate policy momentum. Despite this, the UK continues to stand out as a hub for climate innovation – and the strong first close of Fund II reflects the trust our investors place in our team and our mission,” said Beverley Gower-Jones, Managing Partner at Clean Growth Fund.
Fund II will continue CGF’s strategy of investing in early-stage UK companies with high-emission reduction potential. Initial ticket sizes will range from €580k* to €5.8 million*, targeting six core verticals: power and energy systems, transport and mobility, industrial decarbonisation, buildings and the built environment, agrifood and land use, and the circular economy, waste and water.
The fund’s expansion also includes a broader national outreach, with CGF deepening engagement across UK innovation hubs. A Climate Tech Roadshow is planned in Glasgow on 9 September to connect investors, founders and ecosystem stakeholders with the firm’s investment team.
Investor endorsements further solidify CGF’s growing stature. “Clean Growth Fund’s combination of rigorous investment discipline, clear climate impact and a strong focus on delivering commercial returns made our decision to reinvest straightforward. The UK needs mission-driven, sector experts like CGF to lead in net zero delivery,” said Ian Jamison, Investment Manager, Strathclyde Pension Fund.
Read the orginal article: https://www.eu-startups.com/2025/08/london-based-clean-growth-fund-powers-ahead-with-e56-8-million-to-boost-uk-climatetech/
