Climate Insider Brief:

• Seaya closed Seaya Andromeda, Southern Europe’s first Article 9 climate-tech fund, at €300 million. 
• The fund targets impact-driven growth companies in energy transition, decarbonization, sustainable food value chains, and the circular economy.
• The fund plans to invest between €7-40 million in each of its 25 target investments by 2027, including five more deals this year.

Seaya has announced the closing of Seaya Andromeda, the first Article 9 climate-tech fund based in Southern Europe, at €300 million. The fund’s limited partners include prominent organisations such as Iberdrola, Nortia, Santander, BNP Paribas Group, Next Tech Fund, and Bpifrance. This addition brings Seaya’s total assets under management to over €650 million, positioning the firm as the largest venture capital investor in Spain.

Seaya, leveraging twelve years of expertise in climate technology, established Andromeda to invest in impact-driven growth companies specialising in energy transition, decarbonization, sustainable food value chains, and the circular economy. The fund exclusively targets companies that contribute to a sustainable society by minimising waste and pollution. Adhering to the Sustainable Finance Disclosure Regulations (SFDR) Article 9, the fund ensures that all investments have a positive societal or environmental impact.

Seaya Andromeda has already made its initial five investments into various impact technology companies, including Recycleye, an AI-driven robot for sorting recyclable waste, and 011h, a construction firm focused on reducing CO2 emissions at building sites by 75 percent. The fund plans to invest between €7-40 million per investment and aims to complete 25 investments by the end of 2027, with approximately five more deals anticipated this year.

As one of the few female-founded venture capital firms in Europe, Seaya was launched in 2013 by Beatriz González, a former private equity investor. Despite women constituting only 15% of decision-makers in the sector, González has led Seaya to success in sustainability-focused investments since her first such investment in 2012 with Ecoalf, a sustainable and recycled clothing line. Seaya Ventures has since invested in several startups within this space, including Clarity.ai, Biome Makers, RatedPower, Samara, Crowdfarming, Descartes, and Wallbox, which went public on the New York Stock Exchange in 2021.

Beatriz González, Founder and Managing Partner of Seaya, commented, “From day one, we were focused on impact and climate. We have a strong technological background in this space. We started in 2012 backing climate tech companies and have successfully guided three of them right through to exit. We have 12 years of experience in this space and we can bring this knowledge and expertise to founders through this specialised vehicle.”

Seaya’s investment strategy includes funding Series B stage companies across various regions, including the UK, Denmark, the US, and Spain. The firm’s extensive network of founders, investors, and multinational corporations enhances its attractiveness to entrepreneurs.

Carlos Fisch, partner at Seaya, emphasised, “In addition to investors that can provide capital, there is a need for experienced investors with a proven track record who can support startups navigating the growth challenges in this space. Since we started investing, we have backed 12 climate tech companies and have successfully exited three of them: Wallbox, RatedPower, and Ecoalf.”

Pablo Pedrejón, another partner at Seaya, added, “Deep-tech climate entrepreneurs face a unique set of challenges compared to software-tech entrepreneurs. Climate-tech companies must translate research into a working product, bring it to market, and then scale it. This long journey requires different kinds of support than what is typically provided to software startups. This is why there is a need for Series B and B+ investors that help climate tech startups bridge the ‘valley of death’ – the gap from initial development to deployment at scale.”

Implications for Climate Tech

The establishment of Seaya Andromeda as Southern Europe’s first Article 9 climate-tech fund holds significant implications for the climate technology landscape. By focusing on energy transition, decarbonization, sustainable food value chains, and circular economy initiatives, the fund aims to drive impactful advancements in these crucial areas. Its adherence to SFDR’s Article 9 ensures that investments contribute positively to societal and environmental goals, promoting sustainable development.

The fund’s strategy to invest substantial amounts in growth-stage companies, coupled with Seaya’s extensive network and experience, offers crucial support to climate tech startups. This can facilitate their transition from initial development stages to market deployment and scaling. Such backing is vital for overcoming the unique challenges faced by deep-tech climate entrepreneurs, enabling the creation and expansion of innovative solutions that address climate change and environmental sustainability.

News Source: EU-Startups

Featured Image: Credit: Seaya