Clean Growth Fund has secured £81.5 million in total commitments for its second venture capital fund, marking another step toward its £150 million fundraising target.
The London-based climate tech investor announced the second close as it looks to expand support for UK startups developing technologies designed to reduce emissions and improve resource efficiency.
The latest close places Fund II more than halfway toward its ultimate target and strengthens the firm’s capacity to invest in early-stage businesses across Britain’s growing climate technology sector.
Border to Coast Anchors Latest Fundraising Round
A £22.5 million commitment from Border to Coast’s UK Opportunities Fund served as the anchor for the second close.
Launched in 2024, the fund seeks long-term risk-adjusted returns for Border to Coast’s LGPS Partner Funds while supporting investments capable of contributing to economic growth across the UK.
Strathclyde Pension Fund also committed a further £10 million to Fund II.
The two investors join Islington Pension Fund and East Riding Pension Fund, which were already backing the fund.
Fund II Targets Britain’s Climate Technology Leaders
Clean Growth Fund intends to use the capital to invest in UK companies from the seed stage through Series A.
Its strategy is focused on businesses developing technologies with the potential to cut greenhouse gas emissions while contributing to the expansion of the country’s green economy.
The fund plans to invest in approximately 25 companies and support their development as they scale.
Its investment strategy also targets a net return of 20% internal rate of return (IRR), combining environmental objectives with financial returns for investors.
Four Startups Already Backed
Fund II has already begun deploying capital, with four startups receiving investment so far.
The companies are based across Sheffield, Bristol, Cardiff and London and are working on innovations spanning battery technology, food, heavy industry and buildings.
The portfolio reflects Clean Growth Fund’s broad approach to climate technology, targeting multiple sectors where technological advances could contribute to lower emissions and more efficient use of resources.
First Fund Built a 19-Company Portfolio
The firm’s first fund invested in 19 UK startups, with its portfolio companies projected to abate 27 million tonnes of carbon dioxide equivalent (tCO2e) annually by 2030.
Clean Growth Fund says that figure is equivalent to around 1.5 times the amount of carbon absorbed by all UK forests, highlighting the scale of emissions reduction targeted through its portfolio.
Beverley Gower-Jones Leads Climate Investment Strategy
Clean Growth Fund is led by founder and managing partner Beverley Gower-Jones OBE.
The firm focuses exclusively on UK-based climate technology businesses whose innovations can reduce greenhouse gas emissions or improve resource efficiency.
Its investment interests cover power, transport, industry, the built environment, agrifood and the circular economy, giving the firm exposure to a wide range of technologies shaping the UK’s transition toward a lower-carbon economy.
Fundraising Continues Toward £150M Target
With commitments now standing at £81.5 million, Clean Growth Fund has raised more than half of the £150 million it is seeking for Fund II.
The latest investment from UK institutional investors signals continued appetite for climate-focused venture capital while giving the firm additional resources to identify and scale British startups developing technologies aimed at tackling emissions and resource challenges.
