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European Investment Fund anchors new climate firm with €50 million

Dec 7, 2022
Illustration of a small plant growing in a pot with the EU flag on the front

Illustration: Sarah Grillo/Axios

The EU's European Investment Fund agreed to invest €50 million (~$52 million) in newly formed climate investment group, World Fund.

Why it matters: The investment is one of EIF's largest commitments for first-time funds to date.

Driving the news: EIF joins search engine Ecosia, PwC and the U.K.’s Environment Agency as anchor LPs in World Fund's debut capital raise, which is targeting €350 million.

  • World Fund spun out of Ecosia in 2021. The debut fund is expected to close in the first half of 2023, EIF says.
  • World Fund has so far backed quantum computing company IQM, space tech company Space Forge, and fermentation startup Planet A Foods.

State of play: Private investment across parts of Europe has risen sharply, driven primarily by large deals in mobility and EVs.

  • "The climate tech VC market in Europe is in its infancy," EIF CEO Alain Godard said in a statement.
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