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In a groundbreaking move for the UK's environmental tech landscape, the country's leading climate tech cluster, Sustainable Ventures, proudly announced today its successful completion of a £3 million fundraising round. The primary driver behind this achievement is Barclays Sustainable Impact Capital, alongside other key investors, as they endeavour to propel Sustainable Ventures into a new era of expansion across the United Kingdom.
Sustainable Ventures, known for its unwavering commitment to supporting sustainability-driven startups and innovations, has ambitious plans to utilise the newly acquired funding to establish a prominent presence in various cities. The first of these will be the vibrant city of Manchester, which is set to witness Sustainable Ventures' arrival in 2024. Additionally, the company aims to fortify the range of services it provides to startups at its well-positioned London hub in Westminster.
The decision to expand into Manchester is strategically significant, as the city emerges as the fastest-growing tech hub outside of London, boasting a staggering £5 billion digital tech ecosystem. What further distinguishes Manchester is its reputation as the most digitally inclusive city in the UK, aligning with its ambitious goal of achieving net-zero emissions by 2038. Sustainable Ventures' entry into this burgeoning tech hub promises to catalyse Manchester's pursuit of climate-positive solutions.
Andrew Wordsworth, co-founder and managing partner at Sustainable Ventures, said climate tech is now the sector of choice for ambitious entrepreneurs. As such, it is crucial to provide local hubs that can connect entrepreneurs and investors.
"This has been Sustainable Ventures' purpose for more than a decade," he said. "We're delighted that with the support of Barclays Sustainable Impact Capital investment, we can support hundreds more innovators to go further and faster on their journey to overcome the challenges of climate change."
Under the terms of the deal, Steven Poulter, head of principal structuring and investments at Barclays, will also join Sustainable Ventures' board.
"The UK, with its world-leading universities, research and manufacturing capabilities, has the potential to be the global hub for climate tech companies that become future unicorns," Poulter said.
"Through Barclays Sustainable Impact Capital, the bank is investing its own capital in Sustainable Ventures' UK expansion to support growth at pace for these innovative low-carbon solutions leveraging our experience as an advisor, bank and investor."
Sustainable Ventures' unique model integrates funding, state-of-the-art workspaces, and expert support services, all meticulously tailored to cater to the climate tech sector's needs. Thus far, this approach has played a pivotal role in accelerating the development of over 450 climate tech companies, enhancing their technological innovations, generating substantial returns, and creating more than 5,500 jobs. Impressively, the climate tech companies associated with Sustainable Ventures have achieved a remarkable survival rate of over 90%.
Operating from the iconic London County Hall, Sustainable Ventures has nurtured a thriving ecosystem of over 500 companies, including notable entities like subsea robotics firm RovCo and Earthshot-winning sustainable packaging innovator Notpla. Their ambitious goal is to foster the growth of 1,000 climate tech businesses by 2025, cementing their position as a driving force in the industry.
Barclays Sustainable Impact Capital is committing to climate tech to a new level by investing £500 million of its equity capital in climate tech firms. They have already thrown their weight behind three businesses previously supported by Sustainable Ventures: Airex, creators of the world's first intelligent air brick; Brill Power, pioneers in technology for extending battery lifespan and output; and Sunswap, a zero-emission transport refrigeration technology firm.