In 10 years’ time, Dutch CO2 emissions should be halved. In 30 years it should be close to zero. Companies with CO2-reducing products, services or processes face the same growth challenges as other early stage companies. With that in mind, we started developing the Climate Tech Innovation Fund (CTIF) fund concept two years ago: a fund aimed at bringing innovative technology to the market in the field of sustainability and CO2 reduction.
Sustainability as a ‘hygiene factor’
In the course of CTIF’s funding process, we have come to the conclusion that the Sustainability element, classified according to the Sustainability Development Goals (SDG) of the UN, has now become more of a “hygiene factor” than an objective in itself. Investing in sustainability has become “just” investing. In addition to the main priority, achieving returns, the preconditions of SDG and compliance (“Know Your Customer”) must be met as standard.
Restricting a fund to just the Sustainability aspect would therefore be unnecessarily limited in the market. We have therefore decided to embed the preconditions of CTIF in the investment criteria of the follow-on fund to the current EVCF II, which is rapidly evolving towards a “fully invested” status; an exit has even already been realised.
Establishment of new fund EVCF III
We expect that EVCF II will acquire two more new ventures before the end of this year and will therefore be fully invested, taking into account reserves. Our lead flow is and remains good and we expect to start the follow-up fund (EVCF III) in the first half of 2022.
EVCF III will acquire and admit ventures with the same scope as EVCF II in 2022, as stated on our Venture Capital Funds website. More information about EVCF III will follow in early 2022.