The European Investment Fund has laid EUR 50m into venture capital investor World Fund, which focuses on financing new climate technology developed by small and medium-sized business start-ups, informs the EU Commission in a press release.

This investment, the statement reads, is among the EIF’s largest to date in a first-time VC fund, and the capital injection is meant to support further SMB activities in projects related to climate change mitigation and environment.

World Fund co-Founder Danijel Višević is pleased about EIF’s involvement, commenting in the statement:

”We see this landmark investment – one of the largest EIF has made in a first-time VC fund – as a strong signal that the European Union is serious about tackling the climate crisis. It will help us continue our mission to back the founders that will deliver decarbonization at scale.”

Financing for the EIF investment is provided by the InvestEU program, established last year, as well as via regional mandates from the Netherlands, Germany, and Bavaria. In connection with this support, the VC fund will direct funding to start-ups in these regions, among others throughout Europe, according to the media release.

Founded in 2021, World Fund invests in new European companies with potential to save at least 10 million tonnes of CO₂equivilent annually.

The VC fund’s other investors include PwC Germany, Ecosia as well as the Environment Agency Pension Fund in the UK.

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