European sustainable energy VC SET Ventures has closed its fourth fund at €200 million to back digital technologies which will facilitate the transition to a carbon-free energy system.

Doubling the size of its previous fund, the firm backs European startups with digital-first, data-driven solutions that accelerate the integration of existing renewable energy technologies into mass markets. 

SET Fund IV will invest in entrepreneurs who pioneer business models that incentivise companies and consumers to adapt now, rather than wait for regulation to force a change.

Founded in 2007, the firm is one of the longest-standing VCs to exclusively invest in the clean energy sector.

Adoption rates for clean energy have continually risen across Europe in recent years as technologies are proven, scaled and developed to a mature standard. Last year, electricity from renewable energy sources made up a record 44 per cent of the EU’s total electricity supply. However, as these solutions are increasingly adopted and our future energy system becomes more decentralised, new systemic challenges emerge such as grid congestion, mismatched production and demand, and storage of intermittent renewable energy.

“Hardware is, on its own, not going to achieve urgent climate goals,” says Anton Arts, Managing Partner at SET Ventures. 

“For decades, our energy system has been geared towards fossil fuels, so it’s no surprise that the energy transition has come with teething problems. In fact, these issues are a positive sign that we are in the midst of this mass rollout.”

With our fourth fund, we champion the founders who apply digital technology to address these challenges. We invest to spawn a universe of solutions and companies that complete the formula for fully transitioning to a carbon-free energy system in the coming years.”

The specialised fund has generated successes with early movers such as Instagrid, Sensorfact, and sonnen.

Co-founder and Managing Partner Wouter Jonk said: 

“76 per cent of the world’s emissions stem from energy, so solving this brings the fastest potential emissions reductions. The advantage of our long-standing history is that we understand which technologies are likely to stand the test of time and have a genuine impact.

Last year, our portfolio companies’ work led to the avoidance of 3.3 million tonnes of CO2 emissions.”

SET Fund IV, an SFDR Article 9 fund, has attracted investment from new and existing investors, including the European Investment Fund (EIF), Triodos Energy Transition Europe Fund, a.s.r., Carbon Equity as well as several European grid operators. 

The companies who have so far received investment are smart heat-management startup vilisto, energy renovation advisor Fuchs & Eule, energy management software provider Tibo Energy, and e-mobilio, the cloud-based e-mobility platform.

Lead image: SET Ventures. Photo: Uncredited.