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 put money into options that speed up an all-electrified future that can safe Europe’s power independence and competitiveness.
Vireo Ventures is backed by six European power 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 fans.
“Grid investments are central to Europe’s future safety and competitiveness. Europe’s electrification push isn’t just a local weather crucial however a geostrategic necessity,” stated Felix Krause, Managing Accomplice at Vireo Ventures. “Startups are uniquely positioned to ship the pace, innovation, and scalability wanted to fulfill 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 power and mobility. The €50 million Electrification Fund I is Article 9 labeled below SFDR and backed by institutional and company LPs throughout the power ecosystem.
The closing comes as Europe faces unprecedented stress to affect.
“Our focus is on direct investments in startups,” explains Crispin Leick, Managing Director EnBW New Ventures. “Now we have identified Vireo’s workforce for a very long time and worth their expertise within the power 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 growth.”
In line with information offered by Vireo, clear electrical energy provided 40% of world energy in 2024. But electrical energy presently accounts for simply 23% of the EU’s remaining power consumption. To fulfill local weather and power targets, that share should improve to 35% by 2030 and 61% by 2050.
Current evaluation exhibits that electrifying heating, transport, and trade may halve family power payments, cut back fossil gasoline imports by tens of billions, and strengthen Europe’s strategic autonomy.
With the brand new fund, Vireo is investing in European early-stage firms which might be orchestrating and synchronising era, grids, storage, and downstream functions in mobility, trade, and actual property.
“The closing of the Vireo Ventures Fund is a strong affirmation to the belief the market locations within the workforce and its mission. From day one, our partnership has been formed by a shared dedication to accelerating the power transition via innovation. Vireo’s deep experience, entrepreneurial mindset, and sharp give attention to early-stage power startups in Europe make them an distinctive associate.
“Their skill to establish and assist breakthrough applied sciences has already created tangible worth. We’re proud to be a part of this journey and sit up for scaling our impression collectively,” stated Dr Franz Zöchbauer, Director Company Innovation & New Enterprise Managing Director VERBUND Ventures.
Vireo says that they foster a special sort of relationship, the place LPs aren’t simply passive traders however collaborators, bringing many years of trade experience, operational expertise, and strategic depth.
With traders spanning Europe and america, Vireo’s base of utilities, corporates, and entrepreneurs provides startups alternatives to check and scale their options. Early collaborations have reportedly seen portfolio firms pilot applied sciences with LPs, from grid intelligence functions to decarbonised heating options.
“Our LPs aren’t simply traders. They’re specialists, allies, and companions,” added Krause. “The vast majority of our 90+ restricted companions have a direct connection to the power trade. They supply crucial 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 business success and local weather impression.”
Since its inception, Vireo has backed startups reminiscent of Encentive, Atmen, Inexperienced Fusion, and About:Vitality, all innovating scalable options in areas like grid optimisation, warmth decarbonisation, and EV infrastructure.
A number of portfolio firms have already secured follow-on funding, strategic partnerships, or trade awards.
“For us, ESG is embedded in our DNA. Each portfolio firm we again contributes on to decarbonising crucial infrastructure. Their financial success amplifies their impression,” stated Matthias Engel, Managing Accomplice at Vireo Ventures.
