Clean Growth Fund

The Clean Growth Fund is a prominent UK-based venture capital fund dedicated to accelerating the transition to a low-carbon economy. Launched in May 2020, the fund was established with a strategic mandate to invest in promising early-stage clean technology businesses across the United Kingdom. Its formation was a collaborative effort, notably backed by the UK government's Department for Business, Energy & Industrial Strategy (BEIS), now the Department for Energy Security and Net Zero (DESNZ), alongside private investors such as Octopus Investments and Legal & General. The fund's primary objective is to support innovative companies developing solutions critical for achieving the UK's ambitious net-zero targets.

Initially capitalized with £40 million (approximately $50 million USD), the Clean Growth Fund aimed to grow its total fund size to £100 million (approximately $125 million USD) through subsequent closes. This significant capital base allows the fund to make meaningful investments into companies that are developing disruptive technologies in areas like renewable energy, energy efficiency, carbon capture, sustainable transport, and circular economy solutions. The fund specifically targets UK-headquartered businesses, reinforcing its commitment to fostering domestic innovation and job creation within the green economy.

The Clean Growth Fund typically focuses on Series A and early Series B funding rounds, providing crucial capital for companies transitioning from product development to commercial scaling. Their investment strategy involves taking significant stakes, often leading or co-leading investment rounds. The typical first check size ranges from £1 million to £5 million, which translates to approximately $1.25 million to $6.25 million USD, depending on the specific exchange rate at the time of investment. Beyond capital, the fund offers strategic guidance and leverages its extensive network within the clean tech ecosystem to support portfolio companies' growth and market penetration.

By channeling investment into high-potential clean growth ventures, the Clean Growth Fund plays a vital role in de-risking early-stage climate tech innovation and bringing impactful solutions to market. Its government backing provides a unique blend of public and private capital, signaling strong national support for the clean energy transition. The fund's disciplined approach to identifying and nurturing companies with strong intellectual property and scalable business models positions it as a key enabler for the UK's net-zero ambitions and a significant contributor to the global fight against climate change.