Encevo, Verbund and EnBW are among the energy utilities that chipped in as European electrification-focused Vireo Ventures reached a final close of its debut fund.
Six European energy utilities have contributed to a €50m ($58.7m) venture capital fund formed to help bring the continent to an all-electrified future.
Germany-based VC firm Vireo Ventures closed its Electrification Fund I this morning, securing backing from a limited partner group featuring energy providers including Encevo, Verbund and EnBW, the latter two through corporate VC units Verbund X and EnBW New Ventures respectively.
Although clean energy was responsible for 40% of the world’s electricity use last year, electricity made up less than a quarter of Europe’s final energy consumption. Vireo is investing in European startups aiming to synchronise and manage energy generation, electricity grids, storage systems and downstream applications, in a bid to substantially increase that proportion.
“We have known Vireo’s team for a long time and value their experience in the energy and utility sector and our shared vision of an all-electrified world,” said EnBW New Ventures managing director Crispin Leick in a press release this morning.
Vireo says its model is more strategic than many peers and it plans to harness the expertise of its utility, corporate and entrepreneur LPs to offer portfolio companies the chance to collaborate on pilot projects to test and scale their technologies.
The corporates were joined in the fund by European Investment Fund and NRW.Bank in addition to more than 80 individual investors, many of whom are already involved in the energy industry.
“Our LPs are not just investors. They are experts, allies and partners,” said Vireo Ventures’ managing partner, Felix Krause, while announcing the close.
“The majority of our 90+ limited partners have a direct connection to the energy industry. They provide critical insights, help shape due diligence and often join forces with startups in pilot projects or co-investments. This hands-on collaboration is what sets our model apart and accelerates both commercial success and climate impact.”
Although today marks the full close of Electrification Fund I, Vireo has been investing since 2021 and has built a 17-strong portfolio. Its most recent investments, in June this year, were in heat pump installer NuuEnergy and Atmen, creator of a certification automation platform for energy supply chains.
EnBW’s investments in startups since 2023
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