London-based venture capital firm 2150 has closed its second fund at €210 million (approximately USD 249 million), reinforcing investor confidence in technologies reshaping how cities are built, powered, and decarbonised. The fund targets climate and sustainability startups addressing the structural challenges of urbanisation, from energy systems and industrial heat to materials, mobility, and circular economy solutions. The key question is whether urban-focused climate tech can now scale fast enough to materially cut emissions while delivering venture-level returns.

Cities as the Core Climate and Growth Engine

Founded in 2019, 2150 invests under the premise that cities generate roughly 80 percent of global economic output and sit at the centre of the climate transition. As urbanisation accelerates, the firm argues that sustainability must be embedded directly into how cities are designed, constructed, and operated. Fund II continues this thesis, backing technologies that enable sustainable urban growth without locking in high-emissions infrastructure.

The firm’s investment focus spans energy systems, industrial decarbonisation, advanced manufacturing, mobility, and urban infrastructure platforms. These sectors are increasingly intersecting as cities grapple with rising energy demand, ageing assets, and tightening climate regulation.

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Portfolio Scale and Climate Impact

To date, 2150 has invested in 27 companies across its funds. Collectively, these portfolio companies generate more than USD 1 billion in annual revenues and employ over 4,500 people. The firm reports that its portfolio is already delivering climate impact exceeding one million tonnes of CO₂ annually, reflecting a focus on commercially deployed solutions rather than early-stage pilots.

The portfolio includes startups working on lower-carbon cement, industrial heat decarbonisation, energy-efficient cooling, biodiversity monitoring, critical minerals, urban mobility, and circular economy models. This breadth reflects a strategy of targeting emissions-intensive urban systems where incremental efficiency gains can translate into large absolute reductions.

Fund II Deployments and Strategy

Fund II has already backed seven companies, including industrial steam decarbonisation provider AtmosZero, metal recycling platform Metcycle, carbon removal technology firm Mission Zero, and electronics refurbishment company GetMobil. Three additional investments are expected to be announced.

These investments highlight a shift toward scaling infrastructure-adjacent technologies that can integrate into existing urban and industrial systems, rather than relying on wholesale replacement. The emphasis is on solutions that can be deployed quickly and generate near-term emissions reductions alongside long-term structural change.

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Global Investor Backing

Fund II attracted a diverse group of limited partners from Europe, Asia, and North America. Investors include Viessmann Generations Group, Novo Holdings, Denmark’s sovereign fund EIFO, Carbon Equity, and the US-based Church Pension Group, among others. The mix of strategic, institutional, and long-term capital suggests growing maturity in the sustainable cities investment theme.

Long-Term Outlook

According to co-founder and partner Christian Jolck, the firm’s focus on revenue-generating companies with real-world deployment underpins its confidence in delivering long-term returns. As cities account for the majority of both economic activity and emissions, investors are increasingly viewing urban systems as one of the most leverageable points in the climate transition.

Whether funds like 2150 can translate this momentum into system-wide change will depend on policy alignment, infrastructure readiness, and the ability of portfolio companies to scale across global cities. What is clear, however, is that sustainable urbanisation has moved firmly from niche thesis to core climate investment strategy.

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