In an period outlined by useful resource shortage and fragile provide chains, Vireo Ventures, a German early-stage VC agency, is betting on an electrical world with the ultimate closing of its Electrification Fund I at €50 million.
The fund will spend money on options that speed up an all-electrified future that can safe Europe’s vitality independence and competitiveness.
Vireo Ventures is backed by six European vitality corporates, together with Encevo, Verbund X, and EnBW New Ventures, in addition to the European Funding Fund and NRW.Financial institution and over 80 seasoned entrepreneurs, sector veterans, and EnergyTech lovers.
“Grid investments are central to Europe’s future safety and competitiveness. Europe’s electrification push is not only a local weather crucial however a geostrategic necessity,” mentioned Felix Krause, Managing Companion at Vireo Ventures. “Startups are uniquely positioned to ship the pace, innovation, and scalability wanted to satisfy this problem.”
Based in 2020, Vireo Ventures is a VC agency backing hardware-enabled startups which might be electrifying the world and shaping the way forward for vitality and mobility. The €50 million Electrification Fund I is Article 9 categorised beneath SFDR and backed by institutional and company LPs throughout the vitality ecosystem.
The closing comes as Europe faces unprecedented strain to affect.
“Our focus is on direct investments in startups,” explains Crispin Leick, Managing Director EnBW New Ventures. “Now we have identified Vireo’s group for a very long time and worth their expertise within the vitality and utility sector and our shared imaginative and prescient of an all-electrified world. Due to Vireo, we’re even nearer to startup Seed investments and their additional improvement.”
Based on knowledge offered by Vireo, clear electrical energy equipped 40% of world energy in 2024. But electrical energy presently accounts for simply 23% of the EU’s last vitality consumption. To satisfy local weather and vitality targets, that share should enhance to 35% by 2030 and 61% by 2050.
Current evaluation exhibits that electrifying heating, transport, and business might halve family vitality payments, scale back fossil gas imports by tens of billions, and strengthen Europe’s strategic autonomy.
With the brand new fund, Vireo is investing in European early-stage corporations which might be orchestrating and synchronising technology, grids, storage, and downstream functions in mobility, business, and actual property.
“The closing of the Vireo Ventures Fund is a robust affirmation to the belief the market locations within the group and its mission. From day one, our partnership has been formed by a shared dedication to accelerating the vitality transition via innovation. Vireo’s deep experience, entrepreneurial mindset, and sharp concentrate on early-stage vitality startups in Europe make them an distinctive associate.
“Their capacity to establish and help breakthrough applied sciences has already created tangible worth. We’re proud to be a part of this journey and look ahead to scaling our influence collectively,” mentioned Dr Franz Zöchbauer, Director Company Innovation & New Enterprise Managing Director VERBUND Ventures.
Vireo says that they foster a unique type of relationship, the place LPs aren’t simply passive buyers however collaborators, bringing a long time of business experience, operational expertise, and strategic depth.
With buyers spanning Europe and the USA, Vireo’s base of utilities, corporates, and entrepreneurs gives startups alternatives to check and scale their options. Early collaborations have reportedly seen portfolio corporations pilot applied sciences with LPs, from grid intelligence functions to decarbonised heating options.
“Our LPs are usually not simply buyers. They’re consultants, allies, and companions,” added Krause. “Nearly all of our 90+ restricted companions have a direct connection to the vitality business. They supply essential insights, assist form due diligence, and sometimes be a part of forces with startups in pilot initiatives or co-investments. This hands-on collaboration is what units our mannequin aside and accelerates each industrial success and local weather influence.”
Since its inception, Vireo has backed startups comparable to Encentive, Atmen, Inexperienced Fusion, and About:Power, all innovating scalable options in areas like grid optimisation, warmth decarbonisation, and EV infrastructure.
A number of portfolio corporations have already secured follow-on funding, strategic partnerships, or business awards.
“For us, ESG is embedded in our DNA. Each portfolio firm we again contributes on to decarbonising essential infrastructure. Their financial success amplifies their influence,” mentioned Matthias Engel, Managing Companion at Vireo Ventures.