Vireo Ventures Raises €50M for European Energy Tech
Berlin-based venture capital firm Vireo Ventures has successfully closed its Electrification Fund I at €50 million, positioning itself at the forefront of Europe's energy transition. The fund exceeded its target despite challenging market conditions, signaling strong investor confidence in electrification technologies.
According to the company's press release, Vireo Ventures is backed by an impressive consortium of six leading European energy utilities, including Encevo, Verbund X, and EnBW New Ventures, alongside the European Investment Fund and NRW.BANK. The fund also counts over 80 seasoned entrepreneurs and energy sector veterans among its supporters.
The timing couldn't be more critical. While clean electricity supplied 40% of global power in 2024, electricity accounts for just 23% of the EU's final energy consumption. To meet climate targets, this share must jump to 35% by 2030 and 61% by 2050. Recent analysis suggests that electrifying heating, transport, and industry could halve household energy bills and reduce fossil fuel imports by tens of billions.
"Grid investments are central to Europe's future security and competitiveness," said Felix Krause, Managing Partner at Vireo Ventures. "Europe's electrification push is not just a climate imperative but a geostrategic necessity."
What sets Vireo apart is its collaborative approach. The firm's 90+ limited partners aren't passive investors but active collaborators who provide industry expertise, pilot opportunities, and strategic guidance. Portfolio companies have already begun testing technologies with these partners, from grid intelligence applications to decarbonized heating solutions.
The fund targets European early-stage companies orchestrating generation, grids, storage, and downstream applications across mobility, industry, and real estate. Early investments include startups like Encentive, Atmen, Green Fusion, and About:Energy, which are developing scalable solutions for grid optimization, heat decarbonization, and EV infrastructure.
"Every portfolio company we back contributes directly to decarbonizing critical infrastructure," noted Matthias Engel, Managing Partner at Vireo Ventures. "Their economic success amplifies their impact."
With Europe facing unprecedented pressure to achieve energy independence, Vireo's focus on software-enabled, scalable technologies positions the fund to capture significant momentum in the growing electrification market.