Forget futuristic tech, a European venture capital firm is making a big bet on climate solutions that can deliver results fast. ETF Partners just closed their fourth fund, raking in €284 million to invest in startups with quicker turnaround times.
“We need companies that can make a real difference within a decade, not solutions stuck in development for 20 years,” said Patrick Sheehan, a partner at the firm.
Instead of chasing moonshot ideas like carbon capture, ETF Partners is looking for software-driven solutions that can have a big impact right away. They point to Deepsea, a company in their portfolio that uses AI to optimize shipping routes, slashing fuel use by up to 15%.
“That’s a massive chunk of global emissions we can cut quickly, just with some clever software,” explained Sheehan.
The firm focuses on European startups, where they see a strong government and public commitment to tackling climate change. This, they say, creates a fertile ground for companies that can make existing infrastructure more sustainable, rather than needing to completely replace it with revolutionary new technologies.
“There’s a place for deep tech, but for us, it’s all about companies that are already generating revenue and can scale up fast to make a real difference today,” concluded Sheehan.
