Testing the hypothesis

In setting out our first G-Force Fund, we aspired to build a differentiated investment platform, one that was attractive to founders and could help them build strong foundations from which to grow sustainably, especially in the tough early years. We designed a three-pillared package made up of pre-seed capital, hands on expert operational support and non-dilutive grant support and we started to offer this package to the best climate tech founders we could find. 

We decided to focus on two high level ideas. First of all, we invest in themes, not regions. Our operations may be mostly Europe based (Founders Factory largely in the UK, Italy, and Germany; G-Force in Slovakia and Hungary), but we never wanted geography to constrain us. Rather, we’ve been led by finding and supporting companies across five key investment themes—decarbonising the grid, fixing food and agriculture, electrifying transportation, cleaning up industry & buildings, and protecting nature & removing carbon—which could be located anywhere in the world. Secondly, size—investing purely at the pre-seed stage. 

Like most funds, we were investing capital—€150k in pre-seed investment. But on top of this, we had two additional features that distinguished us. Firstly, a six month programme of bespoke, hands-on operational support from Founders Factory’s team of experienced operators. Over the past seven years, they’ve built and invested in over 300 businesses, sharpening their process for what startups need across different stages and industries. And secondly, grant support, working with our dedicated public funding team to find and secure non-dilutive capital from EU and UK innovation support schemes. 

We believed this investment package set us apart from the crowd. Ultimately, founders can accept capital from anyone, but it’s the hands-on support that differentiates us. So was this something the highest quality climate tech founders were looking for? Ultimately, this was the hypothesis we set out to test with Fund I. 

Highlights from G-Force Fund I

After reviewing over 1000 startups, we invested in eight. These spanned the full spectrum of climate tech and the themes we’d selected to invest in. Our first portfolio includes:

• Solivus—residential and commercial solar energy products and solutions to enable buildings to decarbonise 

• Metalchemy—patented nano-particle solution focused on preserving food for longer, addressing the 8% GHG emissions that global food waste emits

• Materials Nexus—AI modelling platform designing new materials and accelerating green materials research and development

• Quiron—AI platform using satellite data to monitor forest threats (can predict forest fires within a 10 metre radius and 10 days before they happen)

• Manna Insect—turning bio-waste into high quality insect protein for animal feed, using a container based, self-assembly, IoT AI system (The Manna Mind) 

• Rebel Tech—building dark factories for electronic repair to become the world leader in repair automation

• Powerex—AI-powered energy trading platform enabling virtual power plant customers to capitalise on “behind-the-metre” energy market

• Climate Karma—Fitbit for personal carbon footprint to measure, reduce and offset your carbon footprint

Looking ahead to G-Force Fund II

We’re excited to announce that we’re doubling down on our commitment to support climate tech founders, with a new €20 million fund to invest in 35 startups over the next few years. 

We don’t want to rewrite a winning formula, but we are making a few small tweaks. We will now be investing €250k (up from €150k) into each business, ensuring that our founders have all the resources and enough firepower to help them excel at this crucial early stage. Also we’ve simplified  our investment criteria. We are investing in pre and seed startups, from around the globe, that meet these three criteria:

1. Do they solve a large and clear problem in a unique and compelling way?

2. Do they have the potential to scale effectively across borders?

3. Will they have a clear impact in lowering greenhouse gases?

If you are a pre or seed stage founder who is meeting these criteria, please get in touch.

One of the biggest challenges to overcome in solving climate change is awareness and education for everyone. Our shared climate challenge is a community one, so the more people who understand the problems and solutions, and how to make a difference, the better for all of us. We believe a great way to become educated is through investing in it and meeting the innovators leading the charge. And so we are offering friends, family, founders and investors the opportunity to join us in G-Force Fund II, to be able to learn, contribute and be part of this opportunity.