The new fund is targeting an additional €200m as it searches for companies offering scalable, disruptive technologies capable of slashing the carbon footprint of the transport sector.
Shift4Good, an impact venture capital fund for sustainable transport startups, has raised more than €100m from major institutional and corporate investors in Europe and Asia.
The first close of the Shift4Good Fund 1 was supported by investors including French carmaker Renault Group, the European Investment Fund (EIF), various mobility players such as major car dealers or equipment manufacturers, as well as renowned family offices and sustainable mobility entrepreneurs.
The alignment to a 1.5°C scenario of global warming requires the automotive industry to halve its carbon emissions by 2030. That’s because transport of goods and people account for around one-fifth of global CO₂ emissions. In Europe, close to 30% of all emissions are generated by the mobility sector.
“This first closing will allow us to launch our support programmes for entrepreneurs committed to developing sustainable mobility solutions, making it possible to contribute to reversing the climate trend,” said Yann Marteil, co-founder & managing partner of Shift4Good.
“The abundance and quality of the deal flow illustrate the existence of bold and profitable solutions to offer sustainable mobility,” he added.
Disruptive, scalable tech
Shift4Good is targeting an additional €200m for the fund, which qualifies as an Article 9 fund, meaning it meets the strictest sustainability criteria under the EU’s SFDR framework.
The Paris and Singapore-based venture capitalist, founded by four specialist in in venture capital and mobility, said it aims to invest in around 30 startups over the next five years, predominantly in Europe and South-East Asia. Its first two investments will be announced soon.
Shift4Good’s main focus is on companies with disruptive technologies and scalable business models, according to its website. It will typically invest between €500,000 to €20m per company.
Renault Group and InvestEU
Luc Julia, chief scientific officer of Renault Group, said the carmaker was “particularly proud” to be able to contribute to the launch of Shift4Good. “Together, we will allow entrepreneurs to succeed, by leveraging corporate investors and a wide network of experts and business partners, in a collaborative ecosystem,” Julia said.
Renault, which sold 2.7 million cars last year, is aiming to become carbon neutral by 2040.
The EIF is supporting the new fund through its European investment programme InvestEU, and French national investment bank Bpifrance.
Alain Godard, managing director of the EIF, said it was “absolutely essential that players like Shift4Good can find financial partners in Europe capable of supporting them on a massive scale in these innovative and risky projects for large-scale economic transformation”.
InvestEU has made “an important contribution to innovation in sustainable mobility by bringing out new carbon-neutral modes of transport”, said Paolo Gentiloni, European Commissioner for the Economy. Gentiloni said he was “delighted that, through this investment, InvestEU is supporting the decarbonisation of a sector which has a crucial role to play in ensuring the green transition”.