Announcing the Green European Tech fund

Munich Venture Partners and Demeter launch the Green European Tech venture capital fund:

A joint French-German initiative to invest in European scale-up companies

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Munich Venture Partners (MVP) and Demeter are pleased to announce the setup of a joint European venture fund with a strong French-German base. The fund, called Green European Tech (GET), will be dedicated to European scale-ups developing transformative technologies for a sustainable future. GET will be a €250 million fund with a potential top-up to €400 million by applying to the Late Stage venture initiative promoted by the French Government.

Yann Lagalaye, Partner at Demeter: “We are delighted to announce this partnership between MVP and Demeter. Combining both parties’ experience and capabilities will strengthen the European venture capital ecosystem and give us a powerful lever to support European start-ups in expanding quickly across France, DACH and other European markets.”

The clear mission of the French-German initiative is to fight climate change through technological transformation of value chains in the sectors energy, building, industry, resources management, and mobility.

Martin Kröner, Managing Partner at MVP: “Climate change bears the greatest challenge of the 21st century. At the same time, it offers entrepreneurs opportunities to build companies on the basis of new technologies. We want to back these companies to exploit their potential to transform incumbent industries and establish a new generation of European champions.”

Gonzague Dejouany, Partner at GET: “This cooperation among French and German venture capitalists is very unique. For investors, the GET fund offers a genuine opportunity to participate in both significant return potential and contribution to environmental wealth.”

The multi-cultural GET team has outstanding experience as industry managers, start-up founders, and venture capital investors. Martin Kröner, Yann Lagalaye, Michael Sailer and Eric Marty will be the Fund Partners of GET. Gonzague Dejouany will act as an Operating Partner. The team will be completed by two other binational Fund Partners post first close.

 

 

About Munich Venture Partners (MVP):
Munich Venture Partners is a European venture capital investor backing entrepreneurs driving the eco-industrial revolution with transformative technologies. The investment focus is on sectors with CO2 emission-intensive value chains: energy, mobility, agriculture and food, and industrial technologies. MVP has more than 15 years of experience investing in cleantech start-ups across Europe, including investments in recent success cases relayr and sonnen.

About Demeter:
Demeter is a major European player in venture capital, private equity and infrastructure for the ecological transition. Its funds invest from €1m to €30m to support  companies and projects in the sector at all stages of their development: innovative startups, small and mid-cap companies, as well as infrastructure projects. The Demeter team counts 40 people based in Paris, Lyon, Grenoble, Metz, Madrid, and Münster, manages €1bn and has completed 180 investments over 14 years.


What's "driving the eco-industrial revolution" about?

Climate change has entered a new phase. Alarming signals of an ever more rapid change in the biosphere are increasing. And scientist highlight that earth may have already passed several climate change tipping points which has irreversible effects as the loss of the Amazon rainforest and the great ice sheets of Antarctica and Greenland.  At the same time, it is becoming a decisive political factor with hundreds of thousands of young people pioneering a new extra-parliamentary climate opposition.

 

…it’s about decoupling economic growth from environmental pollution

As the world’s population is rising to over 9 billion people in 2050, countries of the South and the East are becoming increasingly industrialized, and cities continue to grow, global economic output will roughly double in the next 30 years. Over the same period, greenhouse gas (GHG) emissions will have to fall dramatically in order to reach the GHG reduction targets set by governments. For the EU, the binding target is a cut by at least 40% compared to 1990 levels by 2030. This puts a great burden on the economy. However, the question is not whether the global economy will continue to grow. The key question is whether we can decouple value creation from environmental pollution.

The recipe is nothing less than a new industrial revolution with an impact similar to the invention of the steam engine, industrial steal making, or the automobile: the eco-industrial revolution.

In essence, it is about a threefold transformation of the old industrial society: firstly, a complete shift from fossil energy sources to renewable energies; secondly, a continuous increase in resource efficiency to generate more value from fewer raw materials and energy; and thirdly, the transition to a circular economy in which the productivity of resources is increased.

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…it’s about fostering the transformative power of technology

Similar as the first industrial revolution was triggered by the invention of the stream engine, also the eco-industrial revolution will be driven by technological innovations and their expansion. However, this time, we require technologies that allow a rethinking of existing value chains to reduce CO2 emissions along the entire process of value creation.

At MVP, we call such technologies that (I) improve, (II) enhance, or (III) reconstruct existing value chains Transformative Technologies. They trigger fundamental changes and paradigm shifts in existing business areas in short time frames. To some degree, Transformative Technologies can also be viewed as disruptive. However, rather than the disruptive “destroy and build new” approach, Transformative Technologies may also enable developing new enhanced solutions using existing infrastructure whenever possible. They are the basis for shaping the future and have an extraordinary growth potential. Identifying these opportunities and financing appropriate technologies and solutions is one of the strategic cornerstones of MVP’s Venture Capital investment approach.

…it’s about leveraging total value potential

Our focus is on driving change in the most CO2 intensive sectors and financing businesses that can have a huge impact in achieving decarbonization of the incumbent industry. To make it clear: it’s not about limiting economic growth in favor of ecological sustainability. We are firmly convinced that economic growth and ecological sustainability are not tradeoffs, but in contrast mutually reinforcing factors. With investments in companies like sonnen we were able to verify this thesis in the past. Even more, companies and business models, which do not take into account ecological responsibility, will not be successful anymore or disappear completely.

Therefore, we integrate the concept of Triple Top Line value creation in our investment strategy to leverage the full transformative potential of a technology. Rather than balancing economical, ecological and societal targets, this approach focuses on employing their dynamic interplay to generate value.

Driving the industrial revolution is the core philosophy of our investment approach. In fact, that’s what we’ve been doing at MVP for over 15 years now. With this experience and the capital entrusted to us, we back pioneering entrepreneurs and become sparring partners for ambitious teams to create the business leaders of tomorrow.


Are startups in a position to transform markets?

Interview with MVP partners

Walter Grassl and Martin Kröner

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How do markets develop, when can a start-up participate in them – and how does it get there? WirtschaftsWoche kicks off a new column on investor insights with an interview with MVP Partners Martin Kröner and Walter Grassl (German only).

Click here to read the full interview