VC firm 2150 raises €210M fund to solve cities’ climate challenges

In the battle against climate change, urban areas represent a crucial front. Jacob Bro, co-founder and partner at 2150, describes cities as resource magnets, stating, "The city is kind of like this beautiful vampire squid that sucks in all the resources." He emphasizes that while cities contribute significantly to global prosperity—accounting for 80% of GDP—they also generate 70% of emissions, presenting both challenges and opportunities for investment. 2150's approach to climate investment revolves around identifying urban problems that can lead to innovative solutions. Bro explains, "If we look at all the stuff we consume, all the stuff we need to build, to make the urban platform of prosperity operate and thrive, you can identify technologies and the bottlenecks." This dual focus on sustainability and profitability has proven advantageous, as the firm recently raised a second fund of €210 million from various institutional and family investors. Notable contributors to the new fund include Chr. Augustinus Fabrikker, Church Pension Group, and the Danish sovereign fund EIFO, among others, bringing the firm's total assets under management to €500 million. The new fund has 34 limited partners, with significant financial commitments, according to co-founder Christian Hernandez. With this capital, 2150 has already invested in seven companies, focusing on sustainable solutions. These include AtmosZero, which specializes in industrial heat pumps; GetMobil, an e-waste recycling venture; Metycle, a marketplace for scrap and recyclable metals; and MissionZero, a startup dedicated to direct air capture technology. The firm plans to invest in a total of 20 companies, primarily in the Series A funding stage, with individual investments averaging between €5 million and €6 million. Hernandez notes that half of the fund is reserved for follow-up investments. The partners are particularly interested in opportunities within data centers and automation, areas that have gained momentum due to the recent growth in artificial intelligence. However, they see the implications of AI extending beyond climate impact. Hernandez points out the demographic challenges Europe faces, predicting a loss of 100 million people by 2040 due to an aging population, with countries like the Netherlands already having a significant portion of their populace over 50 years old. He asks, "What role does industrial automation help with helping those people be productive, but also generating GDP and funding those people’s pensions?" Bro adds that the emphasis on industrial applications is logical, given that cities depend on various industries. The outcomes so far are promising; 2150’s portfolio companies collectively mitigated one megaton of carbon emissions last year. Hernandez expresses optimism about their impact, stating, "The fact that a small venture capital fund can already get to the megaton-level scale in only four years is a significant achievement, indicating we are on the right path."