Clean Growth Fund launched as a venture capital vehicle to accelerate early-stage green businesses
The government is launching a new effort to support green start-up companies across the UK, joint-funding a £40 million venture capital fund to supercharge the development of next-generation clean, low-carbon technologies.
The Clean Growth Fund will contribute towards the UK’s plans to reach Net Zero by 2050 and will be accessible to UK-based companies driving green technology across the power, transport, waste, and building energy efficiency sectors. Potential examples of projects the fund could support include:
With £20 million of government investment matched pound for pound by CCLA, one of the UK’s largest charity fund managers, the fund could reach £100 million by Autumn 2021 through private sector fundraising.
Business Secretary, Alok Sharma, said:
James Bevan, the CCLA’s Chief Investment Officer said:
The Fund is seeking to make investments at early stage, seed or Series A rounds in exciting, innovative clean growth start-ups. The fund will invest in businesses with a prototype product or service demonstrating a clear contribution to reducing greenhouse gases together with compelling evidence of market demand. It will be managed by Clean Growth Investment Management LLP (CGIM).
Beverley Gower Jones, Managing Partner of CGIM, said:
The Fund is now seeking wider private sector investment and will aim to balance its portfolio across clean growth sectors. Investment parameters for the Fund focus on clean growth technologies, hardware, products and services in sectors including power generation, waste, energy networks, buildings management, industries, bioenergy and alternative fuels.