Green Forum • 8 February, 2023 at 10:17 AM
EIB and Czech fund Inven Capital have doubled up on their strategic partnership, with the EIB committing a further €50 million to fund innovative clean-tech and decarbonisation startups. The EIB invested the initial €50 million alongside Inven over the period 2017-2022.
This renewed collaboration will provide equity to innovative EU small businesses and mid-caps in the areas of cleantech and decarbonisation and contribute further to the SME/Innovation window under the EU bank's climate action and environmental sustainability goals. Some Inven investments are also beneficial to the pressing REPower EU initiative. They help consumers reduce their energy consumption and hence their reliance on Russian gas. These companies can then develop solutions to reduce their carbon footprint and other negative externalities in a wide range of sectors from agriculture to transportation and energy generation.
Inven Capital and the EIB have so far co-invested in companies that substantially contribute to greenhouse gas emission reduction in Europe. For instance, Czech portfolio company Woltair is helping households save more than 8 kt of CO2 annually thanks to heat pumps and photovoltaic modules that they have installed since Inven invested in the company. The German-based green hydrogen producer Sunfire has built installations that are saving more than 250 kt of CO2.
EIB Vice-President Lilyana Pavlova said: “With its vast experience and a strong network in the cleantech sector, Inven is an ideal partner for the EIB to swiftly provide capital in this market, which is crucial to the European Union's energy transition. It significantly increases the fund's resources to support innovative small businesses and adds further expertise. Against the backdrop of this crisis, it is important that we work together with trusted partners to generate much-needed support for European businesses and turn the current situation into an opportunity to advance with cleaner, more sustainable energy generation.”
Member of the Board of Directors and Chief Renewable Energy and Distribution Officer of ČEZ Tomáš Pleskač stated: “Inven Capital has gradually broadened its scope of investments, and its portfolio significantly contributes to clean, sustainable, decentralised energy and to reducing global CO2 emissions in all areas of the economy, including transport, industry, international freight and agriculture. We are delighted with the European Investment Bank's trust and appreciation of the fund's work thus far and we look forward to our continued cooperation.”
Managing Director and Chairman of the Board of Inven Capital Petr Míkovec commented: “We view this continued partnership with the EIB as a major commitment in continuing to support outstanding startups with positive carbon reduction impact. In line with ČEZ Group's Vision 2030, we at Inven Capital consider sustainability as one of our core values, implementing ESG (environmental, social and governance) screening into our investment process and actively supporting our portfolio companies in applying sustainable best practices.”
Inven strengthens its position on the market
Czech energy utility the ČEZ Group, which owns Inven Capital, has provided over €210 million for the fund's 2022-2027 investment period. Together with the EIB's input, Inven currently has more than €260 million at its disposal for new investments. With a total fund size of more than €500 million, Inven has bolstered its position as a strong and stable partner for innovative startups and co-investors, including major global players.
During the first investment period (2015-2022), Inven Capital screened some 3 200 investment opportunities and built a diversified portfolio of 16 companies from several European countries and Israel, of which five were already exited (fully or partially) with an average return of 36%. The invested companies employ almost 2 500 people. EIB has co-invested in eight of those, namely in the German companies Cloud&Heat, Tado°, Zolar and Forto, with the latter becoming the first unicorn in the 2021 portfolio including the French company CosmoTech, Swedish company Eliq, and Czech companies Neuron Soundware and Woltair.