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HomeInnovationIgnitis Group backs climate tech VC World Fund

Ignitis Group backs climate tech VC World Fund

Integrated renewable energy company Ignitis Group, has backed World Fund with around 25 million euros, to invest in start-ups offering energy and climate change solutions.

“We are pleased to further our net-zero commitments by investing in climate tech through venture capital,” said Darius Maikštėnas, CEO of Ignitis Group. “We clearly see that this asset class is crucial for the energy sector in order to meet EU climate and our strategy targets as well as maintain competitive advantage. We conducted an 18-month research and public tender process, where World Fund stood out among a competitive group of VCs due to its clear investment and climate methodology, ability to attract climate-focused investors and experienced team with a background in science, entrepreneurship and venture capital.”

At this stage, Ignitis Group is investing in World Fund together with KfW Capital, the largest national development bank in the world and other institutional investors.

“We see this as a strong signal for climate tech in Europe, especially against the backdrop of the venture capital slowdown,” said Daria Saharova, one of the Managing Partners of World Fund.

In the first half of 2023, the investment environment for climate tech looked dire – the levels of capital being invested and deployed across the sector dropped 57.6 per cent between the first quarter of 2022 and the same period of 2023. This development came as interest rates soared and Europe entered a broader inflationary and recessionary environment.

Ignitis Group’s decision to invest in a second venture capital fund was based on the strong performance of the first fund established in 2017 and the ambitious goal of achieving a zero-emissions balance by 2040-2050. The first fund, Smart Energy Fund powered by Ignitis group, managed by Contrarian Ventures, has already generated a return of 15.6 million euros this year, compared to a total investment of around 11 million euros by the Group.

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