Democratizing Climate Tech: Why we are launching an ELTIF
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Four years ago, we set out on a mission to democratize climate tech investing. We believed that startup innovation would be crucial for the energy transition, and that everyone should have the opportunity to invest in these world-changing companies. Today, I'm thrilled to share a major milestone in that journey: the launch of Access to Climate Tech Fund II 🎉
This is our first European Long-Term Investment Fund (ELTIF), which makes climate tech venture capital accessible starting at just €20,000.
⚡️Democratizing Climate Tech: Why we are launching an ELTIF
🎯 How it started
From my research project on impact investing in university, I knew that the impact you make with your capital is very limited on the stock market. Why? Your money doesn't go directly to companies, and these mature businesses can typically access bank financing when they want to grow.
During my time as an environmental consultant, I witnessed countless innovations the world desperately needs to reach net zero. Geothermal power, alternative cements, industrial heat pumps—technologies with the potential to be cheaper and better, requiring only scale to transform markets. I also learned that we know precisely what technologies we need to get to net zero, but only about 10% are mature today. Another 45% are commercializing, 40% in early innovation, and 5% are still in concept phase.
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The companies working hardest to bring these technologies to maturity are startups. They possess the agility, risk tolerance, and focus that established firms often lack when commercializing groundbreaking ideas. This crystallized my thinking: funding these innovators is the most impactful thing you can do with your capital.
💡 The birth of Carbon Equity’s mission
When I met my co-founders Jacqueline and Lara, we shared a vision: enabling as many people as possible to put their capital to work for a better world. Until now, only multi-millionaires could invest in the VC funds that funded climate innovations, leaving trillions in affluent wealth ($295 trillion globally) untapped for the energy transition. There's more affluent than institutional wealth worldwide, and by creating access for this group, we believe we can effectively double the capital pool for climate solutions.
After exploring various concepts, we returned to what we knew best—startup investing. Our moment of clarity came when we realized we could partner with great climate venture funds rather than compete with them. As Lara said, "I've heard of this thing called a feeder fund..." A feeder fund pools capital from multiple investors to invest collectively into a larger master fund, making it easier to join high-quality investment opportunities… and making it more affordable. We were on the right track. Jacqueline replied, "Can you scale that?"
💪 Get to work: the “Tesla Roadster” play and piloting smaller tickets.
Regulatory frameworks led us to start with our "Tesla Roadster" approach: a fund with a €100,000 minimum investment. This decision allowed us to quickly build scale, invest with top funds, and successfully execute our strategy. Behind the scenes, we continued pursuing accessibility. We obtained an AIFMD license, navigated prospectus legislation, and piloted smaller tickets through regulatory exceptions.
Starting this journey, I never expected it would take four years. While frustrating at times, we've built meaningful scale (€300M from 1,250 investors) and earned a reputation that grants us access to the world's top climate funds. Our approach and due diligence have become laser-focused on identifying the most important technologies to fund with attractive return potential.
Then, a lucky break: the updated European ELTIF regulation specifically designed to enable retail investors to access private equity.
In hindsight, it is an exciting time to launch this fund and invest in European climate tech. An interesting moment to contribute to our European economy, and to profit from the biggest transition our continent has faced in decades. While the US is in chaos under Trump, the European Union reiterated its objective to “turn decarbonization into a driver of growth for European industries.” With the Clean Industrial Deal that was announced in February, the European Union will step up further in creating the right conditions for European climate tech startups to succeed. The ELTIF will invest the majority of the capital in European funds and European startups (which is a requirement from the ELTIF legislation).
🇪🇺 What is an ELTIF?
The European Long-Term Investment Fund (ELTIF) represents a breakthrough in democratizing access to private markets. ELTIFs are designed specifically to channel capital into long-term investments while providing appropriate investor protections.
Unlike traditional private equity vehicles that typically require multi-million euro commitments, ELTIFs allow investors access with more reasonable minimums, in our case: €20'000.
Our ELTIF fund maintains a similar investment strategy to our other portfolio offerings: investing in the best climate technology funds globally, but with a particular focus on European opportunities. The fund provides exposure to approximately 100 underlying climate technology companies working to accelerate the energy transition and get us to net zero.
Now we’re here:
Access to Climate Tech Fund II is open for investment.
We believe there are more people like us. Who believe in our vision of "money as a means" where money is about more than money. It is responsibility. And it is power. How will you use yours?
🎥 Upcoming webinars
Join me for our upcoming webinar "How to invest in real climate solutions like a pro" on Tuesday, May 27th at 4:00 PM CEST. I'll be joined by Tobias Grinwis to walk through the fund structure, investment strategy, and answer all your questions about Access to Climate Tech Fund II. Whether you're new to venture capital or a seasoned investor looking to expand your climate portfolio, this session will provide valuable insights into an opportunity previously reserved for institutional investors.
Can't make it? Sign up anyway, we'll send you the recording.
💡 News from within our funds
🌱 Puna Bio raises strategic funding from Corteva Catalyst to boost regenerative agriculture with extremophile microbes.
🔥 Fervo Energy inks 31 MW geothermal PPA with Shell Energy to advance clean baseload power.
🔋 Form Energy lands Pacificorp backing to scale its iron-air long-duration battery tech.
💨 Sunfire progresses 500 MW green hydrogen project and lands 10 MW electrolyzer deal with Repsol.
🏠 Dandelion Energy and Lennar launch one of the largest U.S. residential geothermal rollouts.
🌞 Flower signs 180 GWh PPA with Locus Energy to power businesses and balance the grid.
♻️ Redwood Materials teams up with Lime to recycle 1M+ pounds of e-bike and scooter batteries.
🔋 Inlyte Energy secures $8M to scale iron-salt batteries for long-duration grid storage.
✈️ Twelve lands United Airlines investment to turn CO₂ into sustainable aviation fuel.
⚛️ Elementl Power to build three advanced nuclear sites in U.S. with funding from Google, underscoring a major bet on small modular reactors as part of the clean energy transition.
Investing with us? You can now follow the latest news on your investments directly on our platform, here.
📚 Interesting reads
A Grid Turning Point: Fossil Fuels Dip Below 50% in U.S. Electricity Mix
For the first time ever, fossil fuels generated less than half of U.S. electricity in a single month. This new record shows renewables aren’t just growing: they’re winning. A must-read milestone for those interested in the acceleration of clean energy markets.
Young Money Moves: 80% of Gen Z & Millennials Plan to Up Their Sustainable Investments
Morgan Stanley’s latest survey reveals a generational shift: 80% of young investors are doubling down on sustainability. Their motivations? Strong returns and stronger values.
Geothermal Meets Exploding AI Power Demand
As data center electricity demand skyrockets, RMI explores how steady, low-carbon geothermal can be a key clean supply source. A prime example of tech gaining relevance through new tailwinds.
Podcast: $28M for smarter timber supply chains.
Global wood demand is set to triple by 2050, so Cambium is on a mission to build better supply chains for the timber industry. Their platform helps industries source Carbon Smart Wood™ from downed trees—think storm damage and urban removals—at scale. This podcast dives into how local wood can decarbonize supply chains and turn waste into a climate asset. A fresh take on climate tech beyond energy and mobility.
