Berlin-based Extantia Capital has successfully closed its oversubscribed Article 9 flagship fund at €204 million, drawing strong support from a diverse global network of institutional investors. These backers include sovereign wealth funds, pension funds, insurance companies, corporations, and family offices.
Behind Extantia Capital: €300M in AuM, EPIC methodology, and ESG framework
Founded in 2020, Extantia Capital has established itself as a pioneering venture capital firm with €300 million in assets under management (AuM). The firm’s investment strategy centres on identifying and supporting climate tech pioneers through two complementary approaches: the Extantia Flagship and Extantia Allstars initiatives. Practically speaking, these strategies target software and hardware solutions with transformative potential, specialising in Seed to Series A rounds across Europe, with initial investments ranging from €1-5 million.
In a conversation with TFN, Yair Reem, Partner at Extantia, elaborated further: “We invest in companies tackling high-impact, near-term climate opportunities. Using our EPIC methodology, we estimate their potential carbon savings by 2050 and set short-term impact targets to track per-unit carbon reductions. We also assess other environmental effects through our ESG framework.”
Proven portfolio performance: traction and impact
Extantia’s portfolio demonstrates remarkable traction and industry-transforming potential, with several standout investments showcasing the firm’s strategic vision.
Reverion represents a cutting-edge advancement in carbon-negative technology, securing $62 million in Series A funding in September 2024. The company attracted a robust group of investors, including VC Partners, European Innovation Council, Honda Motor, Energy Impact Partners (EIP), Extantia Capital, Doral Energy-Tech Ventures, Green Generation Fund, and Possible Ventures, and has already achieved over €100 million in customer pre-orders, signalling strong market validation.
Similarly, INERATEC has emerged as a leader in sustainable fuel innovation, raising €118 million in Series B funding from High-Tech Gründerfonds, Safran, Honda Motor, ENGIE New Ventures, Planet A Ventures, MPC, and FO Holding in January. The company focuses on transforming renewable energy into sustainable e-fuels, strategically decarbonising challenging sectors like aviation and shipping.
Another portfolio success is BeZero, a carbon rating company that raised $50 million in November 2022 and achieved a remarkable $1 billion valuation. Backed by investors such as Molten Ventures, QIMA, Illuminate Financial, Norrsken VC, Contrarian Ventures, Quantum Capital Group, Hitachi Ventures, EDF Pulse Ventures, and Intercontinental Exchange, BeZero is a prime example of the potential of innovative climate tech solutions.
“There is no impact without scale. That’s why we provide founders with hands-on support in commercialisation, organisational growth, and fundraising. As entrepreneurs and operators who’ve built and exited companies, we understand the pain points and work with our founders to facilitate accelerated growth – both for deep tech and high-impact software solutions,” said Reem.
Green discount as the key trend in climate tech for 2025
Yair Reem, Partner at Extantia, offers an insightful perspective on the evolving climate tech landscape. He highlights an exciting emerging trend: transitioning from a “green premium” to a “green discount.” This paradigm shift suggests that innovative technologies like heat pumps and behind-the-meter storage are no longer niche, premium solutions but are becoming cost-competitive alternatives with immediate financial benefits.
The firm believes that climate technology can accelerate sustainable transition by creating cheaper, faster, and higher—quality solutions that are also environmentally friendly. This approach reflects Extantia’s core philosophy of driving meaningful climate impact through strategic, thoughtful investment.
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