Copenhagen-based Climentum Capital has reached the first close of its second fund at €60 million, matching the full size of its first fund as it continues backing European climate HardTech companies aiming to strengthen the continent’s industrial resilience, sustainability and competitiveness.
The European Investment Fund (EIF) has committed €40 million to the fund, while Denmark’s Export and Investment Fund (EIFO) has invested €15 million and the Danish Society of Engineers (IDA) has committed €5 million.
“The fundraising environment for early-stage climate HardTech has not been easy in recent years. Investors are more selective, timelines are longer, and the proof bar is higher. That is why the composition of the Fund II launch matters: our investor syndicate reflects informed conviction, not momentum investing,” says Morten Halborg, General Partner at Climentum Capital.
“Europe has excellent research and business ideas,” adds EIF Deputy Chief Executive Merete Clausen. “To build on these, it needs investors willing to back companies developing the industrial technologies that will shape the next generation of clean growth. Climentum Capital Fund II addresses an important financing gap by supporting entrepreneurs building climate solutions for the real economy.”
Founded in 2022, Climentum Capital backs HardTech companies that can help reduce the carbon footprint of sectors responsible for a significant share of Europe’s greenhouse gas emissions.
Its first fund launched at €60 million and has already delivered a realised exit, with Studsvik acquiring KNXT less than three years after Climentum’s initial investment. The firm said the deal demonstrated its thesis in action, with a strategic industrial player acquiring capabilities needed to remain competitive.
Climentum Capital Fund II is targeting up to €100 million and will invest primarily in Seed and Series A companies developing hardware and DeepTech solutions across energy, industry, transport and agriculture.
The fund will focus on businesses working on energy security, industrial efficiency, supply chain sovereignty and industrial decarbonisation, particularly across Denmark, Sweden, Germany, Austria and Switzerland
The new fund is structured as an Article 9 fund and uses a dual carry model that links the firm’s economics to both financial returns and verified CO₂ savings. Climentum Capital Fund II aims to support companies whose technologies are capable of reducing CO₂ emissions by around 1.5 million tonnes a year, equivalent to emissions from 350 000 gasoline-powered cars driven for one year.
“EIFO’s mission is to accelerate the green transition while strengthening Europe’s strategic independence,” says EIFO Chief Investment Officer Erik Balck Sørensen. “Through our investment in Climentum Capital Fund II, we are helping to scale critical, yet significantly underfunded, climate technologies that are essential to reducing carbon emissions across European industry and achieving Europe’s climate ambitions.”
Climentum outlines that Europe’s changing geopolitical and industrial context has reinforced the need for patient capital in climate HardTech. The firm pointed to the ongoing war in Ukraine, instability in the Middle East, pressure on energy markets, more fragile supply chains and an unpredictable US policy environment as factors that have made industrial resilience and energy security more urgent for both strategic and financial reasons.
The EIF investment is supported by the RCR-REPowerEU mandate and supports the European Union’s target of becoming climate neutral by 2050, while helping reduce Europe’s dependence on imported fossil fuels. The backing also reflects a wider push to mobilise private investment for high-risk, early-stage companies working on technologies that can support Europe’s green transition and industrial competitiveness.
“We cannot keep talking. We need to turn words into action. Europe needs more competitive technology companies, and Denmark has the ideas, the talent and the research to build them. I see this potential every day among our members. It is unusual for a trade union to become an investor, but I hope IDA can lead by example and inspire others to follow,” said IDA President Laura Klitgaard.
Climentum is investing from Fund II with teams based across the Nordics and Germany. The firm said its local presence helps it source companies aligned with its thesis, assess opportunities beyond the technology itself and support founders after investment.
With Fund II, Climentum expects to make around 20 investments and continue leading Seed and Series A rounds in European B2B HardTech startups. Its strategy remains focused on companies that can combine climate impact with strong business fundamentals, while helping Europe rebuild a more sustainable, resilient and competitive industrial base.
Read the orginal article: https://www.eu-startups.com/2026/07/danish-climate-vc-climentum-capital-launches-fund-ii-with-e60-million-first-close/
