Future Energy Ventures confident about energy tech despite headwinds: ‘Everything we do is still valid’

Future Energy Ventures recently raised a new €235m Article 9 fund – and partner Veronique Hördemann says the thesis is almost unchanged from the firm’s first vehicle back in 2016. The focus remains software and asset-light tech to underpin Europe’s energy transition.

Fund I, backed solely by German energy utility E.ON, invested in more than 50 companies. Though E.ON remains an anchor, a broader mix of LPs has joined the second fund. They include the likes of KfW Capital, Telos Impact, and Sabanci Climate Ventures.

Hördemann admits fundraising took longer this time, with COVID, war in Europe, and the broader macroeconomic environment slowing commitments. Nevertheless she remains optimistic about the future of energy tech.

Resilience as the new framing

Hördemann says Europe’s burgeoning energy security narrative hasn’t forced a rewrite of the thesis. The same grid and orchestration tools they backed pre-Ukraine now look like resilience tech by default.

“Everything we do is still valid,” she said, pointing out that more efficient grids, smarter buildings, and reliable mobility systems all build resilience.

Political shifts in Germany

Hördemann says recent government changes have caused some uncertainty around subsidies, but they haven’t altered the underlying fact that renewables are still the cheapest source of energy.

“There was some turmoil or some changes in the political environment, but in the end, we still see the trend is there…from an economic point of view, there can't be a way around it,” she said.

Where they’re deploying now

New investments already include companies tackling grid optimisation, EV charging, building efficiency, predictive modelling, and early wildfire detection. The common thread is software that connects and protects fragmented energy assets.

“In order to make the energy transition work, we need the digital layer that connects everything,” Hördemann said.