VC firm 2150 raises €210M in funding to tackle urban climate challenges

If you want to tackle climate change, there are few better places to start than cities.

“This city is like a beautiful vampire squid that sucks all the resources,” Jacob Bro, co-founder and partner at 2150told TechCrunch. “They generally accumulate all the prosperity of the world – 80% of GDP – but also 70% of emissions and all other resources, all the waste, and all the lack of a good life.”

Many investors have raised large funds to tackle climate change in recent years, with many measuring their success by yield and carbon reduction. 2150 does the same, but to find fertile ground for investment, it starts by looking at the problems and opportunities in cities, in particular.

“If we look at all the things we consume, all the things we need to build, so that the prosperity city platform can run and develop, you can identify technology and bottlenecks,” said Bro.

The climate angle helped fund it, he said. “Sustainability, when done well, is just better business, right? Cheaper, faster, and freer from geopolitics.”

That dual focus helped 2150 raise a new second fund of €210 million from several institutional investors and family funds, including Chr. Augustinus Fabrikker, Church Pension Group, EIFO Danish state fund, Carbon Equity Equity Fund, Novo Holdings, Islandbridge Capital, Keamanan Trading Oy, and Viessmann Generations Group. The new fund brings the European company’s assets under management to €500 million.

In total, the new fund has 34 limited partners, said Christian Hernandez, co-founder and partner in 2150. “Pretty meaty check,” he added.

To date, 2150 have invested in seven companies from the new fund, including AtmosZerowho manufactures industrial heat pumps; GetMobiland e-waste recycling startup; Metyclescrap and recycling metal markets; and MissionZerostart of direct air capture. The other three have yet to be announced.

In total, 2150 want to invest in 20 companies in the second fund. Most startups that write checks will raise series A, and the checks will total €5 million to €6 million, Hernandez said. Half of the funds will be reserved for follow-on investments.

The partners said they will be looking for a variety of startups, the same as before. In particular, however, he is excited about the opportunities in data centers and automation, both of which have been fueled by the surge in AI. But for them, AI is more than just an opportunity to invest in energy-related companies.

“The impact was more social than climate-related,” Hernandez said. “Europe is expected to lose 100 million people between now and 2040 – only the elderly. The Netherlands already has 50% of the population over the age of 50. So what is the role of the automatic help industry with help for them to be productive, but also generate GDP and finance their retirement?” said.

Bro said the focus on industrial applications is perhaps obvious at the end. “The entire city is supplied by large or small industries in the end,” he said.

The focus seems to be paying off. The 2150 portfolio companies reduced one megaton of carbon emissions last year, Hernandez said. “The fact that a small venture capital fund has been able to reach a megaton scale in just four years, that level of impact, together with the commercial appeal, makes me feel like we’re doing the right thing.”