German VC raises €50m fund to drive Europe toward all-electric future

Berlin-based Vireo Ventures wants to help Europe plug into an all-electric future. Now the VC has closed its first fund at €50m to back early-stage founders working on everything from smarter grids to energy storage and industrial solutions. “Europe’s electrification push is not just a climate imperative but a geostrategic necessity,” says Felix Krause, managing partner at Vireo Ventures. “Startups are uniquely positioned to deliver the speed, innovation, and scalability needed to meet this challenge.”

Backed by major utilities

Vireo started out as a small network of angel investors but now has the backing of six major European energy utilities and the European Investment Fund. The VC has the stated aim to “accelerate an all-electrified future that will secure Europe’s energy independence and competitiveness.”

To do that, it has already accrued a portfolio that includes companies like Encentive, Green Fusion and About:Energy. The idea is to create a community for those founders who want to drive Europe’s energy transition. According to Vireo’s figures, Europe currently gets just 23% of its final energy from electricity. To hit climate targets, that figure must leap to 35% by 2030 and 61% by 2050. “In view of the increasing share of renewable energy sources and the volatility of energy production and energy prices, investments in innovative technologies and business models play a crucial role in building a reliable energy system of the future,” says Philipp Leidig, director at NRW.Ventures, one of the investors in Vireo’s fund.