Junction Growth Investors Raises €75 Million in First Close of Energy Fund
- The European Investment Fund contributed 30 million
- Fund’s primary focus will be scaling and industrializing companies specializing in the energy transition.
Belgian growth equity fund Junction has announced first close of its new energy fund at €75 million, including a €30 million contribution from the European Investment Fund (EIF). The EIF participation in the fund is made possible through the support of the European Commission’s InvestEU program, as well as the Dutch Future Fund (DFF). The new fund is focused on impact-driven companies developing software and hardware solutions that enable the energy transition. Notably, it will invest in clean energy production enabling technologies and in energy efficiency technologies for the building and renovation industries.
Paolo Gentiloni, European Commissioner for the Economy, said: “InvestEU is making an important contribution to achieving our green objectives. I am delighted that, with this agreement, InvestEU will grant companies in the energy sector access to the finance they need to innovate, grow and create jobs. I am proud that InvestEU will play an important role in helping these companies achieve their full potential.”
“The energy transition is an important part of our fight against climate change.” says Alain Godard, Chief Executive of the European Investment Fund. “The innovative solutions that Junction targets, can speed up the transition towards a carbon-free Europe and world, and we are happy to support that.”
“The transition towards net-zero should not be a problem, as it can be achieved with technologies that already exist today. Most German or European venture firms prefer to invest in early-stage start-ups in order to have a quick turnaround. However, if we want to succeed with the energy and climate transition, we need more funding into scale-ups and SMEs”, says Junction partner Vincent Gregoir.
In its investments, Junction will focus on companies in the Benelux and Germany, but remains open to applications from other countries.