Primo Ventures launches Primo Climate, a growth-focused VC fund to boost innovation in the climate tech sector

18 lug 2024 Press Release, Primo Climate

Milano, July 18th, 2024. Primo Ventures SGR S.p.A., an independent asset management company specializing in technological investments, announces the first closing of Primo Climate (hereafter “the Fund”), a growth-focused VC fund focused on early-stage climate tech startups with the aim of accelerating the ecological transition.

The Fund starts with an endowment of more than 40 million euros, subscribed by CDP Venture Capital on behalf of the VenturItaly Fund of Funds and the Green Transition Fund - PNRR, which uses resources allocated by the EU through the NextGeneration EU initiative and aims to stimulate the growth of an innovation ecosystem in green transition sectors.

The target size of Primo Climate amounts to 60 million euros and its management has been entrusted to the three new partners of Primo Ventures: Ezio Ravaccia, CFO of Solar Ventures, Giusy Cannone, former CEO of Fashion Tech Accelerator and Venture Partner in TLF ventures and Simone Molteni, scientific director and board member of LifeGate, among the top experts in Europe on decarbonization and founder of the Zero Impact project adopted by more than 2,000 companies. The key managers bring 75 cumulative years of direct experience in investment and sustainability to the Fund.

The Primo Climate team comments, "Globally, since 2022, for every four dollars of venture capital invested more than one dollar has gone to climate change technologies. That is more than $50 billion, an amount that has grown 24-fold in 10 years and will revolutionize the current technology landscape. Participating as a key player in this industrial revolution represents an incredible opportunity for the Italian and European economy of tomorrow. Our vision is a long-term one: there are Italian stories that need to be properly supported and funded, this is Primo Climate's role. Scouting activities are underway, we have already met hundreds of companies and we expect to announce our first investments in the second half of the year."

"The investment in Primo Climate reflects CDP Venture Capital's long-term commitment to promoting the development of sustainable technologies and solutions that can address the environmental challenges of our time," says Agostino Scornajenchi, Managing Director and General Manager of CDP Venture Capital, "In this closing we have channeled resources from our VenturItaly Fund of Funds but also from the Green Transition Fund, which was created to manage the PNRR resources allocated by NextGeneration EU with the aim of stimulating the growth of an ecosystem of innovation in the energy transition sectors."

Primo Climate can count on a strong partnership with LifeGate, a Benefit Corporation recognized as a benchmark for sustainability in Italy, which translates into advisory and support activities for the Fund. Primo Ventures and LifeGate also intend to develop a detailed methodology to accurately calculate and report on emissions reduction.

Addressing climate change and promoting environmental sustainability are pressing challenges that require the pro-active involvement of every stakeholder concerned. The World Fund estimates that $100 to $150 trillion is needed to achieve the Net Zero goal by 2050. However, capital alone will not be enough; it is necessary to accelerate the development of emerging technologies and make recent climate tech innovations more accessible to achieve those goals. As the World Green Development Report suggests, investing in innovative solutions will be crucial to completing the transition to a low-carbon economy in a timely manner.

Primo Climate therefore aims to seize this opportunity by investing in companies ready to scale their solutions to accelerate the green transition. From established sectors such as solar energy, alternative mobility, and lithium-ion batteries, to emerging verticals such as green hydrogen, renewable energy, and geothermal solutions, the Fund is strategically positioned to identify and invest in cutting-edge companies committed to achieving adaptation and mitigation goals.

In line with Primo Ventures' commitment, the Fund is classified as an ex. art 8 fund under the European SFDR regulations, with a commitment to promote the United Nations Sustainable Development Goals. In particular, the Fund places a strong emphasis on goal number 13, "Acting for the Climate," further emphasizing its dedication to the ecological transition.

The Fund aims to support 10-13 companies that develop and produce cutting-edge climate tech or products and services that enable such technologies. Primo Climate will operate in several areas, including energy efficiency and renewables, mobility, circular economy, waste management, and energy storage.

The Fund's activities will focus on Italy, contributing to the country's national resilience and international prominence in the field of sustainability.

Gianluca Dettori, president of Primo Ventures concludes "We are proud to announce the expansion of our independent platform dedicated to technology investment with the launch of our fourth vertical dedicated to climate tech. Climate change is a complex challenge, and we are excited to be able to contribute to adaptation and mitigation efforts to accelerate the achievement of sustainable goals that are crucial to our future. We firmly believe that the climate tech sector is critical to our country's economic development, and we will work to invest in Italian companies with cutting-edge solutions that create jobs and contribute to our peninsula's economic growth."

The latest news from our network
Follow us on Linkedin.