- IDA, Denmark’s largest trade union, has made its first venture capital investment by backing Climentum Capital’s second climate hard-tech fund, alongside the European Investment Fund and Denmark’s state fund, EIFO.
- Climentum Capital Fund II has secured €60 million at first close, moving toward its €100 million goal as climate tech fundraising in Europe slows.
- Most of the funding so far comes from public and semi-public sources, with EIF and EIFO providing €55 million out of the €60 million raised.
It’s rare for a trade union representing more than 180,000 engineers and scientists to invest in venture funds. IDA, Denmark’s largest trade union, has joined EIF and Denmark’s export and investment fund, EIFO, as anchor investors in Climentum Capital Fund II, which has now reached a first close of €60 million.
The firm, founded in Copenhagen in 2022 by Morten Halborg, Dörte Hirschberg, Stefan Maard, and Malin Carlström, invests in Seed and Series A hardware and deep-tech companies that tackle industrial emissions, with offices in Berlin and Stockholm.
Fund II focuses on early-stage companies in energy, industry, transport, and agriculture across Denmark, Sweden, Germany, Austria, and Switzerland.
Challenges in Attracting Private Capital
It is getting harder to attract generalist investors to climate hard tech. Higher interest rates, a slower exit market, and overall economic uncertainty have made many private investors prefer safer, short-term options. As a result, hardware companies that need more time and money are competing for a smaller pool of patient capital.
Climentum’s general partner, Morten Halborg, says, “The fundraising environment for early-stage climate hard tech has not been easy. Investors are more selective, timelines are longer, and the proof bar is higher. That is why the composition of the Fund II launch matters: our investor syndicate reflects informed conviction, not momentum investing.”
So far, almost all the support has come from public and semi-public institutions, not from general private investors. EIF has put in €40 million, EIFO €15 million, and IDA €5 million, making state-linked funding the main source for this first close.
EIF’s deputy chief executive, Merete Clausen, notes Europe “has excellent research and business ideas” but needs investors “willing to back companies developing the industrial technologies that will shape the next generation of clean growth.”
EIFO’s chief investment officer, Erik Balck Sørensen, adds that their commitment is part of a mandate to “accelerate the green transition while strengthening Europe’s strategic independence.”
A trade union’s unconventional investment
IDA’s participation is the most unconventional move in this round. Trade unions almost never act as institutional investors in venture funds.
IDA’s president, Laura Klitgaard, explains the decision as a desire for action over talk: “Europe needs more competitive technology companies, and Denmark has the ideas, the talent and the research to build them”
She openly acknowledged how rare this is: “It is unusual for a trade union to become an investor, but I hope IDA can lead by example.”
Climentum expects that companies in Fund II’s portfolio will cut about 1.5 million tonnes of CO₂ each year once they reach scale. That’s similar to taking 350,000 petrol cars off the road annually. The fund plans to make around 20 investments, following the approach it started with its €60 million debut fund in 2022.
The EIF’s investment is backed by the RCR-REPowerEU mandate, which supports the EU’s goal of achieving climate neutrality by 2050 and reducing dependence on imported fossil fuels. This fits a wider trend in Europe, where state-linked funding is playing a bigger role in hardware-focused climate investments as private investors step back.
It is still unclear whether this public support will help build a stronger private market or simply shows that private interest in climate hard tech is limited, which is a key question for Climentum Capital Fund II.
