Clean Growth Fund Secures £49m First Close of £150m Fund II to accelerate UK Climate Tech

LONDON - Aug. 18, 2025 - PRLog -- Clean Growth Fund (CGF), the UK's leading climate tech venture capital firm,  today announced first close (£49m) of its second fund, targeting £150 million to accelerate the next generation of net zero innovation.

This milestone reflects growing investor confidence in both CGF's track record and strength of the climate tech ecosystem.

In a remarkable show of confidence, two of CGF's Fund I investors including Strathclyde Pension Fund have recommitted to Fund II and are joined by new investors Islington and East Riding LGPS, a powerful endorsement of the firms disciplined, impact -led investment approach.

Backing the UKs Climate Tech Future

Fund II follows the success of Fund I, which invested in 19 breakthrough climate tech startups now projected to reduce over 55million tonnes of CO2e by 2030.

"Raising capital in this market isn't easy, especially with global political uncertainty affecting climate policy momentum" said Beverley Gower-Jones, Managing Partner at CGF. "Despite this, the UK continues to standout as a hub for climate innovation – and the strong first close of Fund II reflects the trust our investors place in our team and our mission."

Alignment with UK Pension Reform and Mansion House Ambitions

The first close of Fund II also reflects growing alignment with the UK's Mansion House Compact, which calls for greater investment from pension funds into high-growth sectors of the UK economy, including venture capital and climate innovation.

Fund II: Doubling down on Net Zero

Fund II, will continue CGF's focussed strategy of investing in UK-based, early-stage companies developing technologies with high potential to cut greenhouse gas emissions. The fund will deploy initial cheques of £500k to £5 million targeting innovations across six core areas:

• Power and energy systems
• Transport and mobility
• Industrial decarbonisation
• Buildings and the built environment
• Agrifood and land use
• Circular economy, waste and water

Investor Endorsements:

Ian Jamison, Investment Manager, Strathclyde Pension Fund: "Clean Growth Fund's combination of rigorous investment discipline, clear climate impact and a strong focus on delivering commercial returns made our decision to reinvest straightforward. The UK needs mission-driven, sector experts like CGF to lead in net zero delivery."

Cllr Paul Convery, Chair Pensions Committee, Islington Pension Fund: "As a new investor in Clean Growth Fund, we see this commitment as firmly aligned with the Mansion House ambitions – backing UK based innovation, supporting high growth sectors and ultimately delivering long term commercial returns for our members. Clean Growth Fund's deep expertise in climate tech, combined with disciplined venture investing, made them a compelling partner for our first step into this space."

www.cleangrowthfund.com