ImpactAlpha, April 5 – European climate tech investing is defying the lull in venture capital dealmaking. The latest: Energy Impact Partners, Fair Capital Partners and Energiiq invested €15 million ($16.4 million) in HeatTransformers, a Dutch startup that sells, installs and services heat pumps in the Netherlands.
The deal follows investments last week in U.K.-based smart water-heater maker Mixergy and Denmark’s Lun, which helps heat-pump installers find customers and complete installations.
Hot for heat pumps
Sales of heat pumps, a clean and energy-saving method of home heating and cooling, jumped nearly 40% in Europe last year, as gas prices spiked with the war in Ukraine. Consumers in the Netherlands last year faced the second-highest energy costs in Europe (costs have since come down).
The Series A financing will help HeatTransformers expand into Germany and the U.K., where residential energy prices are still far above the average in Europe.
Separately, S2G Ventures, chipped in an additional €12 million ($13.1 million) for Germany-based Tado, which makes thermostats to improve home energy efficiency. The company raised €43 million in January with S2G’s participation.
The deal underscores Chicago-based venture capital firm’s expanding climate strategy. S2G was once exclusively focused on sustainable food and agriculture investments but has in recent years branched into ocean and energy tech investments.