The announcement of the government's effort to support green start-up companies across the UK is covered today in national and trade media. The government is joint-funding a £40 million venture capital fund to supercharge the development of next generation clean, low-carbon technologies.
The Clean Growth Fund will contribute towards the UK’s plans to reach Net Zero by 2050 and will be accessible to UK-based companies driving green technology across the power, transport, waste, and building energy efficiency sectors.
Potential examples of projects the fund could support include:
- energy storage and smart grid systems to bolster resilience in the power system
- renewable heating and ventilation technologies across homes and commercial buildings
- bio-fuels and bio-energy systems
Business Secretary, Alok Sharma, said:
The need for innovative and ambitious ideas across green industries has never been greater. I am pleased that with the help of this fund, promising clean growth start-ups will be able to step up to accelerate the UK’s recovery, while supporting our path to Net Zero by 2050.
This pioneering new fund will enable innovative low-carbon solutions to be scaled up at speed, helping to drive a green and resilient economic recovery.
With £20 million of government investment matched pound for pound by CCLA, one of the UK’s largest charity fund managers, the fund could reach £100 million by Autumn 2021 through private sector fundraising.
The fund is seeking to make investments at early stage, seed or Series A rounds in exciting, innovative clean growth start-ups. The fund will invest in businesses with a prototype product or service demonstrating a clear contribution to reducing greenhouse gases together with compelling evidence of market demand. It will be managed by Clean Growth Investment Management LLP (CGIM).
The fund is now seeking wider private sector investment and will aim to balance its portfolio across clean growth sectors. Investment parameters for the fund focus on clean growth technologies, hardware, products and services in sectors including power generation, waste, energy networks, buildings management, industries, bioenergy and alternative fuels.
The Clean Growth Fund is funded by the BEIS Energy Innovation Programme. Find out more about the Clean Growth Fund on GOV.UK.
Further detail and information on the fund’s eligibility criteria and investment approach is available from CGIM’s Clean Growth Fund website.