Lightrock closes Climate Impact Fund at €860 million to fuel net zero innovation #StartUps - The Entrepreneurial Way with A.I.


Thursday, October 13, 2022

Lightrock closes Climate Impact Fund at €860 million to fuel net zero innovation #StartUps


Global investment firm Lightrock has just announced the close of its oversubscribed inaugural Climate Impact Fund at an incredible €860 million. The Fund will make initial investments in growth-stage companies across Europe and North America that are fueling innovation in solving the world’s greatest generational challenge – the climate crisis. 

Decarbonising our global society is undoubtedly the greatest concern of our generation. Taking on this challenge needs collaboration, forward-thinking innovation, ambitious ideas, and money. Moving towards a place of net zero and creating a healthier and happier planet is a target being pursued by both the public and private sectors, and startups are helping generate the innovative approaches and ideas that are taking us there. 

While concerns abound around the current global economic climate, questions have arisen over whether financial commitments will continue to sufficiently support the development of climate innovation. So far, climate tech is continuing to grow as a market area and investors are continuing to back this area – seeing the awards it can have for both the planet and their pockets. We tracked the European greentech space in September and found that €1.1 billion was invested into startups pushing new tech developments forward. 

Now, Lightrock has just closed a new fund – and sitting at an incredible €860 million, it’s a positive reflection that climate innovation is continuing to be prioritized on a global level – which is exactly what is needed. 

Lightrock Climate Impact Fund

This inaugural fund has closed at €860 million. It was oversubscribed and came above its initial hard cap, which had a target of €600 million. 

Supporting the fund are the likes of Lightrock’s anchor investor LGT and its Private Banking Clients. It also has the backing of Lightrock co-investments as well as a diverse range of new high-quality investors including First Swedish National Pension Fund (AP1); New Zealand charitable foundation, Bay Trust; Netherlands-based climate technology-focused investment platform, Carbon Equity; an investment platform company wholly-owned by Temasek, dedicated to accelerating decarbonisation globally, GenZero; European asset manager, Golding Capital Partners; US-based charitable foundation, Grantham Foundation; Thai energy and infrastructure group, GULF; German family-owned investment holding, Haniel; Australian pension fund, NGS Super; Austrian insurance group, UNIQA; and Dutch impact investor, Wire Group.

The Fund will make initial investments of €10-40 million in growth-stage companies driving net-zero innovation in Europe and North America. 

Pål Erik Sjåtil, the CEO and Global Managing Partner of Lightrock, commented: “I want to extend my grateful thanks to our investors for their confidence in and support of our mission. This is Lightrock’s third successful fund close in little over a year and it represents a resounding endorsement of our mission to scale impact investing.” 

Fostering a net zero economy

This impact fund is all about just that – supporting impact. It’ll specifically be used to back growth-stage companies that are innovating towards a net-zero economy and building an operating system for climate action.

It may also include a modest allocation to early-stage startups, provided they have clear potential to emerge as leaders within the climate tech space and are showing emerging commercial traction. 

The key climate themes are:

  • Energy Transition
  • Decarbonizing Industries
  • Sustainable Food and Agriculture
  • Sustainable Transportation

It also includes a cross-cutting focus area centred on the underlying Enabling Technologies & Solutions that support decarbonisation across sectors and industries. 

Lightrock has already made seven investments in leading companies operating across its investment themes and in accordance with LCIF’s investment strategy. These assets are warehoused for the Fund and serve as a clear demonstration of its aims and ambitions. 

Lightrock: Backing purpose-driven entrepreneurship

Lightrock, which is based in London, has been supporting purpose-driven innovators and entrepreneurs tackling the world’s biggest challenges since 2009. The firm aims to back companies and startups that pursue tech-enabled, scalable business models around the themes of plant, people and productivity for good. 

The firm’s portfolio includes more than 80 high-growth companies in 14 countries across Europe, the USA, Latin America, Asia and Africa. 

Lightrock’s experienced investment team and dedicated impact professionals employ an entrepreneur-centred approach to value creation. This encompasses the provision of strategic and impact-focused advice, the strengthening of functional capabilities and governance, and leveraging Lightrock’s global relationships to facilitate partnerships, financing, and fundraising. 

This Climate Fund is classified as an Article 9 Fund under the Sustainable Finance Disclosure Regulation. Each LCIF portfolio company will report on their impact on a regular basis, with each company also benefiting from Lightrock’s proprietary approach to impact assessment and management. This approach has been subject to independent third-party verification. 

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October 13, 2022 at 03:51AM by (Patricia Allen), Khareem Sudlow