European and Canadian climate tech fund managers buck the VC downturn

ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha Editor

Amy Cortese

ImpactAlpha, January 9 — Climate tech deals may have taken a steep 30% drop last year, but the climate funds keep on coming.

The latest additions: Eurazeo is out in the market with a €1 billion climate impact fund to invest in decarbonization, circular economy, biodiversity and energy efficiency and other climate solutions. The French global investor in July last year closed a €400 million venture fund to invest in smart cities, and is in fundraising mode for a pair of green transition and sustainable maritime funds.

As of mid-2023, research firm Sightline Climate tallied $121 billion in private climate tech fund assets under management, including $33 billion of investable dry powder. 

True north

In Canada, Montreal-based Diagram is nearing its CAD $60 million target for its first fund focused on early-stage companies developing digital solutions for the sustainable economy. The fund, which is primarily seeking investments in Quebec, has secured close to CAD $50 million ($37.4 million) in commitments from LPs, including Canadian state government’s Investissement Quebec and Sagar, a Montreal-based asset management firm.

Also in Canada, Active Impact Investments is seeking $120 million for its third early-stage climate tech fund. Vancouver-based Spring Impact Capital is looking to raise CAD $20 million ($15 million) to invest in two dozen early-stage health and climate tech founders in Canada.