Clean Growth Fund Secures £49m for Fund II, Targeting UK's Net Zero Innovation
Funding | Aug 18, 2025 | Clean Growth Fund
The Clean Growth Fund (CGF), a leading UK climate tech venture capital firm, has announced the first close of its £150m Fund II, securing £49m to accelerate net zero innovation in the UK. The fund's launch underlines investor confidence in CGF's impact-led strategy and the strength of the UK's climate tech ecosystem. Fund II follows the success of Fund I, which invested in several notable clean tech start-ups expected to significantly reduce carbon emissions by 2030. Among these is Sunswap, specializing in zero-emission transport refrigeration, and Rendesco, offering ground-source heat networks. Fund II aims to invest in early-stage UK companies with technologies that can cut greenhouse gas emissions across six sectors. The successful close aligns with the UK's Mansion House Compact, promoting pension fund investments in high-growth economic sectors.
Sectors
- Venture Capital
- Climate Technology
- Pension Funds
Geography
- United Kingdom – The article focuses on the UK-based Clean Growth Fund and its impact on the UK's climate tech sector, as well as support from UK pension funds.
Industry
- Venture Capital – The article discusses a fund launch by Clean Growth Fund, a venture capital firm dedicated to investing in climate tech start-ups.
- Climate Technology – Clean Growth Fund is highlighted as a specialist in investing in climate technology, aiming to foster innovations that contribute to achieving net zero emissions.
- Pension Funds – Several pension funds, including Strathclyde Pension Fund, are major investors in the Clean Growth Fund, aligning with broader trends of pension investments in venture capital.
Financials
- £49m – The first close amount secured by Clean Growth Fund for its £150m second fund.
- £150m – The total target amount for Clean Growth Fund's second fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Clean Growth Fund | Venture Capital Firm | Company | A UK-based specialist climate tech venture capital firm launching its second fund. |
| Strathclyde Pension Fund | Investor | Company | One of the returning investors participating in Clean Growth Fund's Fund II. |
| Islington LGPS | Investor | Company | A new investor in Clean Growth Fund's Fund II. |
| East Riding LGPS | Investor | Company | A new investor showing confidence in Clean Growth Fund's approach. |
| Pinsent Masons LLP | Legal Advisor | Company | The legal firm advising Clean Growth Fund, led by Ian Warner. |
| Beverley Gower-Jones | Managing Partner | Person | Managing Partner at Clean Growth Fund expressing optimism for UK’s climate innovation trajectory. |