SET Ventures, the Dutch venture capital firm renowned for its focus on sustainable energy technologies, has announced the closing of its largest fund yet. The firm's fourth fund, totaling €200 million, marks a significant leap from its previous fund and aims to support 20 to 25 European startups dedicated to making renewable energy more accessible and mainstream.
Founded in 2007, SET Ventures has a proven track record in nurturing climate-focused startups. The firm's name, pronounced "set," reflects its mission to drive advancements in Sustainable Energy Technologies. With its new fund, SET Ventures is attracting substantial interest from both corporate and institutional investors, thanks in part to its Article 9 status, which underscores its commitment to sustainability.
Managing Partner Anton Arts emphasizes that despite the larger fund size, SET Ventures will stick to its strengths. "Our approach remains focused on making more deals, not different ones," Arts said. The firm plans to continue concentrating on early-stage investments, particularly Series A rounds, with initial check sizes ranging between €2 and €5 million. A recent example is Vilisto, a German digital heat management startup that secured a €5 million Series A round from SET Ventures.
SET Ventures' investment thesis has evolved to emphasize digital technologies essential for achieving a carbon-free energy system. This focus sets it apart from other climate-focused funds, such as World Fund, which recently closed a €300 million first fund and prioritizes hardware innovations. While SET Ventures remains open to hardware investments, it believes that digital solutions and automation are crucial for widespread adoption and impactful innovation. The success of portfolio company Instagrid, which recently raised $95 million in Series C funding, illustrates the potential of hardware within a broader digital strategy.
The firm’s geographical scope is also expanding. Originally based solely in Amsterdam, SET Ventures now has an office in Germany, reflecting its growing investments in the Netherlands, the U.K., and the DACH region. This expansion aligns with the firm's goal of increasing its geographical coverage and supporting a wider range of clean energy initiatives.
As the clean energy landscape evolves, SET Ventures is eager to leverage the expertise of founders from diverse sectors. Arts notes that these founders bring valuable insights, networks, and conviction to the sector, further energizing the transition to sustainable energy.
SET Ventures is poised to play a pivotal role in shaping the future of renewable energy, using its expanded fund to support innovative startups that will drive the industry forward.
