The European Investment Fund (EIF) is committing €20 million to the Vireo Electrification Fund I of Berlin-based Vireo Ventures, a VC targeting early-stage asset-light technologies enabling the digitalisation and electrification of energy systems. The new fund has a size of up to €60 million. The EIF`s investment is backed by the REPowerEU-programme, as well as by the European Recovery Programme (ERP) of the German government.
The Vireo Electrification Fund invests into early-stage start-ups that develop new technologies in the areas of energy supply, mobility, transport, buildings and industry to accelerate the electrification of the energy sector. Vireo aims at investing in technologies that accelerate digitalisation and intelligent monitoring and managing of energy systems.
In response to the energy sector’s contribution towards emitting over 70% of all CO2 emissions, Vireo Ventures was founded. Originally conceived as an angel investing platform dedicated to energy-tech, it has now evolved into a fund management firm. With a clear focus on seed-stage companies, Vireo Ventures specialises in identifying the most promising teams and technologies very early and supporting them on their way to product-market fit and initial growth.
Marjut Falkstedt, Chief Executive of the EIF, said: “Electrification has become the area of very important technological developments, and its importance will only continue to grow in the next decade. This opens significant potential for profitable investments and adds a powerful tool in the arsenal to tackle so many of the problems we are facing in decarbonising the electricity sector. That’s why, at the EIF, we are proud to support advanced technology investors like Vireo Ventures to further boost European capabilities in the energy sector.”
Mischa Wetzel, Managing Partner of Vireo Ventures, added: “We firmly believe that electrification is the most important measure for mastering the path to global net zero and for achieving the Paris climate targets. That is why we fund start-ups contributing to this energy transition across the whole electrification value chain, from generation of renewable energy to grids and storage, to applications in the electrification of transport and mobility, real estate, and industrial processes. We are delighted about EIF joining us on our mission to nurture the European energy-tech innovation landscape and are looking forward to a long and impactful partnership.”