Danish Climate VC Hits $63M First Close for Fund II

Jan de Vries · 2026-07-03

Copenhagen-based Climentum Capital just hit the first close of its second fund at $63 million (60 million euros). That's already matching the full size of their first fund. And they're not stopping there - they're targeting up to $105 million total. This VC firm backs European climate HardTech companies. You know, the kind of startups building physical stuff that actually reduces emissions. Think industrial tech, not just software. ### Who's Putting Money In? The European Investment Fund (EIF) committed the biggest chunk at $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. "The fundraising environment for early-stage climate HardTech has not been easy in recent years," says Morten Halborg, General Partner at Climentum Capital. "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." ### The Bigger Picture for Climate Tech Climentum's first close comes amid a busy 2026 for European climate HardTech funding. EU-Startups has reported at least $256 million in disclosed startup funding across similar areas this year. That includes: - RIFT's $119.5 million financing for industrial heat in the Netherlands - Entrix's $45.2 million raise for battery optimization in Germany - D-CRBN's $18.4 million Series A for industrial CO2 conversion in Belgium - Exergy3's $12 million Seed round for clean industrial heat in the UK Danish relevance is also visible through Copenhagen-based Kvasir Technologies, which raised $10.5 million to scale climate-neutral marine biofuel. "Europe has excellent research and business ideas," adds EIF Deputy Chief Executive Merete Clausen. "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." ### What Climentum Actually Does Founded in 2022, Climentum backs HardTech companies that can help reduce the carbon footprint of sectors responsible for a huge chunk of Europe's greenhouse gas emissions. Their first fund launched at $63 million and already delivered a realized exit. Studsvik acquired KNXT less than three years after Climentum's initial investment. The new fund will invest primarily in Seed and Series A companies developing hardware and DeepTech solutions across energy, industry, transport, and agriculture. They're focusing on businesses working on energy security, industrial efficiency, supply chain sovereignty, and industrial decarbonization - particularly across Denmark, Sweden, Germany, Austria, and Switzerland. ### The Unique Structure Here's something interesting. The fund is structured as an Article 9 fund (the highest sustainability standard under EU rules). It uses a dual carry model that links the firm's economics to both financial returns and verified CO2 savings. Climentum aims to support companies whose technologies can reduce CO2 emissions by around 1.5 million tonnes a year. That's equivalent to emissions from 350,000 gasoline-powered cars driven for one year. "EIFO's mission is to accelerate the green transition while strengthening Europe's strategic independence," says EIFO Chief Investment Officer Erik Balck Sorensen. "Through our investment in Climentum Capital Fund II, we are helping to scale critical, yet significantly underfunded, climate technologies." So yeah, this isn't your typical VC fund. They're betting on real hardware that can actually move the needle on emissions. And with $63 million already in the bank, they've got the firepower to do it.