Climate tech investment fund Blume Equity has received a €40m (£35m) boost from the European Investment Fund (EIF).
Based in London, Blume Equity invests into high-growth European tech startups developing tools for decarbonisation and environmental sustainability.
Blume has said that while the climate tech sector is one of the fastest growing industries in the European startup scene, there is a clear funding gap at the scale-up stage for green tech companies.
Recent investments from Blume include Sensorfact, a startup using IoT data to improve resource efficiency in the industrial sector, Normative, a carbon accounting platform for large enterprise clients, and Aerones, which has developed a robotic maintenance system for wind turbines.
The EIF is Luxembourg-based investment fund jointly owned by the European Investment Bank and the European Union. The EIF made the investment into Blume with support from the InvestEU programme.
“The green transition must be accelerated to meet our current climate and environmental challenges,” said EIF chief executive Marjut Falkstedt.
“Innovation in all sectors of our economy and cutting-edge technology will play a major role in achieving it.
The EIF joins existing Blume investors such as the Swedish pension fund AP4, Visa Foundation and US-based Impact Engine.
Clare Murray, co-founder of Blume Equity said the investment highlights the EU’s “commitment both to the environment and to supporting the growth-stage ecosystem in Europe”.