Sweden-based VC fund Pale Blue Dot bounced onto the scene in 2020 with a €53 million fund to help climate-focused startups. This fund grew again by €34 million in April 2021, and after deploying investments into 28 climate-forward companies, the investor this week announced it has officially closed its second fund. This one is valued at €93 million (approximately $101 million at today's valuation), with the same thesis in mind: to support climate tech-oriented startups.
Founded by general partners Joel Larsson, Heidi Lindvall and Hampus Jakobsson, Pale Blue Dot looks to make pre-seed and seed investments in European-based companies, although it is open to deals from the U.S., too.
“Climate tech is here to stay,” says Lindvall in a statement to TechCrunch. “As long as the climate crisis has not been solved, we will need to keep investing more money into tech solutions. This space will continue to see accelerated growth as individuals, corporates and governments try to figure out how to decarbonise and prepare for a new world.”
The firm prefers to lead rounds, writing checks between €500,000 and €2 million. Out of its 28 investments to date, the firm highlights some examples of what it is looking for in the form of Phytoform, a British-U.S. biotech-agritech business, climate risk data analytics firm Climate X; U.K.-based logistics company Hived, Danish EV charging platform Monta and French fintech firm Green Got. There remain a few investments to be made from the first fund before the firm officially starts deploying funds out of its second investment vehicle. The GPs are aiming to invest in 35 startups with this fund, in sectors such as food and agtech, industry, mobility and fintech, provided that they are focused on making a positive difference toward climate change.
The Pale Blue Dot team. Image Credits: Pale Blue Dot
Larsson, Lindvall, and Jakobsson are all former startup founders themselves, giving them a strong founder focus in the companies where they choose to invest. They are also the only members of the investment team, which doesn’t have a hierarchy. Any startup that is offered a meeting with the GPs meets with all three of them. If they choose to make an investment, then the founders can expect the GPs to work closely with them to help their startups grow and flourish.
“Receiving interest and recognition from the industry is good,” said Jakobsson, “but the fact that amazing founders keep picking us to be their partners on their journeys is the biggest vote of confidence and why we get up in the morning.”
The new €93 million fund has been created with investment from serial entrepreneurs, family offices and institutional investors from Europe and the U.S. Roughly two-thirds of the second fund’s LPs were LPs in the first fund, with the new LPs having been invited to join.
Pale Blue Dot tells TechCrunch it is eager to meet with ambitious founders from a diversity of backgrounds who are seeking to tackle climate change with their startups.