As global cities grapple with decarbonisation, infrastructure strain and an urgent need for industrial transformation, one European venture firm is positioning itself at the centre of the shift. This week, climate focused VC 2150 announced the final close of its second fund at two hundred ten million euro, bringing its total assets under management to five hundred million euro. The fund reflects a deep commitment to backing founders building technologies that can reshape cities and the industries that power them.
A Climate Fund Built Around Cities and Industry
2150 was founded on a clear thesis. Cities drive economic prosperity and produce most global emissions, which makes them the greatest lever for sustainable progress. The firm invests in founders creating scalable solutions across industrial decarbonisation, energy systems, advanced manufacturing, mobility and the built environment.
Partner and co founder Christian Hernandez says the new fund reinforces the firm’s mission to find technologies that are both climate positive and economically competitive. Rather than investing in early science experiments, 2150 focuses on companies with real products that can scale rapidly across industrial markets.
Why LPs Reinforced Their Commitments in a Tough Fundraising Climate
Despite a challenging fundraising environment for climate funds, 2150 secured strong support from existing and new investors. Hernandez attributes this to two factors. First, continued backing from the firm’s original institutional anchors. Second, the ability to show a meaningful track record since Fund I.
The second fund attracted a broad international base of limited partners. They include Viessmann Generations Group, Chr. Augustinus Fabrikker, Novo Holdings, the Danish sovereign fund EIFO, Security Trading Oy, Islandbridge Capital, Carbon Equity and the Church Pension Group in the United States.
Hernandez notes that LPs wanted evidence that the firm could source high quality deals, win competitive opportunities and help founders reach substantial scale. The portfolio now includes companies with an aggregate run rate of one billion dollars and around four thousand five hundred employees.
By the time 2150 launched Fund II, the team had already completed seven investments, demonstrating a reliable and repeatable pipeline.
Backing Scalable Climate Solutions With Real Economics
2150 does not believe in a green premium. Hernandez emphasises that climate solutions must win on cost, performance or long term ownership economics. This philosophy shapes the firm’s investment strategy and its expectations for founders.
Fund I included companies such as 1Komma5º, Vammo and Blue Frontier. These companies combine industrial hardware, software and financing models that allow them to scale in markets where climate often meets heavy infrastructure.
The firm also evaluates whether founders can access non dilutive financing such as working capital, project finance or debt facilities. For every one euro of venture equity raised, portfolio companies have secured an additional seventy five cents in non dilutive capital. This is considered essential for success in climate and industrial technologies.
A Focus on Commercial Ready Technologies, Not Distant Science
Hernandez says 2150 is intentionally a Series A investor. The firm looks for companies with real products, live pilots and the beginnings of recurring revenue. Founding teams must include both technical and commercial leadership, along with individuals able to structure financing relationships.
The firm does not invest in technologies that may take five or more years to commercialise. Instead, it selects solutions capable of delivering impact within the near term.
Priority Areas: Cooling, Water, Energy and Industrial Software
Cooling is a major focus area for 2150. Energy demand for cooling is projected to surpass that of data centres by 2035, making it one of the fastest growing sources of emissions. Water is another key theme, with challenges such as drought, flooding, PFAS contamination and microplastics shaping a large global market.
Hernandez also highlights rapid growth in industrial and commercial energy management software, a sector benefiting from AI driven optimisation across factories, logistics hubs and cold storage infrastructure.
A Firm Built for Climate Impact Now
The second fund is structured as an Article 9 fund under the European Union’s sustainable finance regulations, meaning every investment must meet strict criteria for environmental impact. Hernandez says this structure aligns with the firm’s mission to back technologies that can create real, measurable planetary outcomes.
With its second fund now closed, 2150 is positioned to scale its model of practical, economically grounded climate innovation across Europe and North America.