E.On investment fund targets smart energy start-ups

  • January 30, 2024
  • Steve Rogerson

E.On, the European Investment Fund (EIF) and Future Energy Ventures (FEV) have set up a €110m to €250m fund to invest in smart energy start-ups.

The fund managed by FEV already has a volume of €110m and a target size of €250m. E.On and the EIF are holding a mid double-digit million euro stake as anchor investors.

The fund will invest primarily in start-ups and scale-ups that develop and implement digital technology to drive the energy transition.

The capital of the fund is allocated entirely towards sustainable investments across three core themes with clear decarbonisation potential: future energy, future cities and future technologies. With an average initial ticket size of between €1m and €10m for early-stage investments, it aims to target thirty new investments in the innovation hubs of Europe, North America and the Middle East.

“The clean energy economy is the greatest business opportunity of our generation, and we are excited to be raising our second fund at this pivotal moment,” said Jan Lozek, managing partner of FEV. “With FEV’s track record of portfolio successes, an extensive network of industry partners, our highly collaborative approach and deep sector focus, we are in a unique position to drive the digitisation and decarbonisation of the energy system. We are grateful to our investors and look forward to continuing discussions with potential institutional and strategic investors that share our vision.”

Marjut Falkstedt, EIF chief executive, added: “Better managing our energy needs is one of the most important challenges of our time. That’s why we are excited about our participation in the newly established fund. This investment aligns perfectly with the EIF’s strategic objectives and our commitment to driving the energy transition and supporting decarbonisation efforts across Europe.”

And Thomas Birr, chief strategy officer at E.On (www.eon.com), said: “This is a milestone for E.On on our way to making the new world of energy work. Having access to climate tech and the resulting digital solutions is a central cornerstone of our innovation initiatives through which we continuously integrate new technologies and start-ups into the E.On business. The newly established fund, which is open for external investors, builds on our success of the existing venture portfolio and is the next important step for E.On to broaden impact through collaboration.”

With this fund, E.On can expand its expertise in the field of innovation and, through a stable innovation ecosystem, bring on board partners who jointly have the confidence to invest in the energy transition.

Today, FEV already runs one of the biggest global funds investing in climate tech, investing primarily in start- and scale-ups that develop and implement digital technology to drive the energy transition. The fund is expected to hold its final closing in the fourth quarter of 2024.

FEV (www.fev.vc) supports ready-to-scale start-ups whose mission is to accelerate the energy transition and decarbonise society. Founded in 2016, FEV has operational hubs in Berlin, Tel Aviv, and Palo Alto.

The EIF (www.eif.org) is part of the European Investment Bank Group. Its mission is to support Europe’s SMEs by helping them access finance.