Danish Climate VC Climentum Capital Raises $63M Fund II

Jan de Vries · 2026-07-03

Copenhagen-based Climentum Capital just hit the first close of its second fund at $63 million. That matches the full size of their very first fund, which is a pretty big deal. They're betting big on European climate HardTech startups that want to make the continent more resilient, sustainable, and competitive. So who's backing this fund? The European Investment Fund (EIF) threw in $42 million. Denmark's Export and Investment Fund (EIFO) added $15.8 million. And the Danish Society of Engineers (IDA) chipped in $5.3 million. Solid mix of institutional and local support. ### Why This Matters Right Now Let's be real—raising money for early-stage climate HardTech hasn't been easy lately. Investors are pickier, timelines stretch longer, and you need to prove way more before anyone cuts a check. Morten Halborg, General Partner at Climentum Capital, put it perfectly: "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." This first close comes as 2026 funding activity keeps humming along in European climate HardTech, industrial decarbonization, and energy transition. Just this year, EU-Startups reported over $256 million in disclosed startup funding across similar areas. Think RIFT's $119 million for industrial heat in the Netherlands, Entrix's $45 million for battery optimization in Germany, D-CRBN's $18.4 million Series A for industrial CO2 conversion in Belgium, and Exergy3's $12 million Seed round for clean industrial heat in the UK. Danish companies are also making moves. Copenhagen-based Kvasir Technologies raised $10.5 million to scale climate-neutral marine biofuel. And Climentum Capital has backed Nature Robots and one.five before, so this new fund fits right into the bigger European trend of money flowing into industrial efficiency, energy security, and emissions reduction. ### What This Fund Will Actually Do Merete Clausen, EIF Deputy Chief Executive, nailed the bigger picture: "Europe has excellent research and business ideas. 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." Climentum Capital launched in 2022 and backs HardTech companies that can seriously cut carbon footprints in sectors responsible for a huge chunk of Europe's greenhouse gas emissions. Their first fund already proved the model works—they had a realized exit when Studsvik acquired KNXT less than three years after Climentum's initial investment. The firm says that deal showed their thesis in action, with a strategic industrial player grabbing capabilities to stay competitive. Fund II is targeting up to $105 million and will invest mostly in Seed and Series A companies building hardware and DeepTech solutions in energy, industry, transport, and agriculture. They're focusing on businesses working on: - Energy security - Industrial efficiency - Supply chain sovereignty - Industrial decarbonization Geographically, they're looking at Denmark, Sweden, Germany, Austria, and Switzerland. ### The Coolest Part: Dual Carry Model Here's where it gets interesting. This fund is structured as an Article 9 fund (the highest sustainability standard under EU rules). It uses a dual carry model that ties the firm's economics to both financial returns and verified CO2 savings. So they literally get paid more if they actually reduce emissions. Climentum Capital Fund II aims to back companies whose technologies can cut CO2 emissions by around 1.5 million metric tons per year—that's like taking 350,000 gasoline-powered cars off the road for a year. Erik Balck Sorensen, EIFO Chief Investment Officer, summed it up: "EIFO's mission is to accelerate the green transition while strengthening Europe's strategic independence. Through our investment in Climentum Capital Fund II, we are helping to scale critical, yet significantly underfunded, climate technologies." The bottom line? This fund is a real signal that smart money is still flowing into climate tech, even when the market feels tough. And with that dual carry model, they're putting their money where their mouth is on cutting emissions.