TODAY: Clean Growth Fund Secures £49m First Close of £150m Fund II to accelerate UK Climate Tech
CGF Fund II first close
Clean Growth Fund logo
The UK’s leading specialist climate tech venture capital firm, today announced the first close (£49m) of its second fund, targeting £150 million
LONDON, LONDON, UNITED KINGDOM, August 18, 2025 /EINPresswire.com/ -- Clean Growth Fund (CGF), the UK’s leading specialist climate tech venture capital firm, today announced the first close (£49m) of its second fund, targeting £150 million to accelerate the next generation of net zero innovation.
This milestone reflects growing investor confidence in both CGF’s track record and strength of the climate tech ecosystem.
In a remarkable show of confidence, two of CGF’s Fund I investors including Strathclyde Pension Fund have recommitted to Fund II and are joined by new investors Islington and East Riding LGPS, a powerful endorsement of the firms disciplined, impact -led investment approach.
Building on a Strong Foundation
Fund II follows the success of Fund I, which invested in 19 breakthrough climate tech startups now projected to reduce over 55 million tonnes of CO2e by 2030. Among the standout portfolio companies:
Sunswap – Developer of zero-emission transport refrigeration units, with a £6m+ growing order book delivering units to major corporations such as DFDS and Tesco.
Rendesco – Provider of low-carbon ground-source heat networks, over 400 completed projects, with £100m pipeline and 80% revenue growth in last 12 months.
Above –Apply robotics, AI and Computer Vision technology to enable the solar industry to build and operate higher performing plants. Grown revenue at 50% CAGR since 2021
Backing the UKs Climate Tech Future
"Raising capital in this market isn’t easy, especially with global political uncertainty affecting climate policy momentum" said Beverley Gower-Jones, Managing Partner at CGF. "Despite this, the UK continues to standout as a hub for climate innovation – and the strong first close of Fund II reflects the trust our investors place in our team and our mission."
CGF is a certified B Corp with a score of 133.8 - one of the highest for UK VC firms and is led by a team combining deep sector expertise across climate, finance and technology. The team who has worked together over many years, brings technical insight and commercial acumen critical to identifying, backing and scaling high-impact climate solutions.
Alignment with UK Pension Reform and Mansion House Ambitions
The first close of Fund II also reflects growing alignment with the UK’s Mansion House Compact, which calls for greater investment from pension funds into high-growth sectors of the UK economy, including venture capital and climate innovation. As one of the few specialist climate tech funds with a proven team and a disciplined, impact-led approach, Clean Growth Fund offers LGPS and other institutional investors a credible and focused route into early-stage investing that combines climate impact with the potential for long-term commercial returns.
Fund II: Doubling down on Net Zero
Fund II, will continue CGF’s focussed strategy of investing in UK-based, early-stage companies developing technologies with high potential to cut greenhouse gas emissions. The fund will deploy initial cheques of £500k to £5 million targeting innovations across six core areas:
Power and energy systems
Transport and mobility
Industrial decarbonisation
Buildings and the built environment
Agrifood and land use
Circular economy, waste and water
Scaling Impact and Ecosystem Reach
To support its national mission, CGF is deepening its engagement with founders across the UKs regional innovation hubs. Its next Climate Tech Roadshow will be held in Glasgow on 09 September, connecting climate innovators, investors, and ecosystem partners with CGF’s investment team.
Investor Endorsements:
Ian Jamison, Investment Manager, Strathclyde Pension Fund: "Clean Growth Fund’s combination of rigorous investment discipline, clear climate impact and a strong focus on delivering commercial returns made our decision to reinvest straightforward. The UK needs mission-driven, sector experts like CGF to lead in net zero delivery.”
Cllr Paul Convery, Chair Pensions Committee, Islington Pension Fund: As a new investor in Clean Growth Fund, we see this commitment as firmly aligned with the Mansion House ambitions – backing UK based innovation, supporting high growth sectors and ultimately delivering long term commercial returns for our members. Clean Growth Fund’s deep expertise in climate tech, combined with disciplined venture investing, made them a compelling partner for our first step into this space.
CGIM was advised again by Pinsent Masons LLP with a team led by Ian Warner who commented “We’re delighted to have helped the team at the Clean Growth Fund again on this second fund. It’s a great testament to the team and work they are doing, bringing together investors and skilled management to invest in this important sector. “
Beverley Gower-Jones
Clean Growth Fund
Beverley.Gower-Jones@cleangrowthfund.com
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