**Kembara: The European Climate Tech Fund That Could Change the Game**
As the climate tech startup scene in Europe continues to flourish, one nagging issue remains: helping these innovative companies scale to global champions. Recent reports have highlighted the “Series B funding gap” in European climate tech, where startups struggle to secure the growth capital they need to take their products to the next level. But Spanish venture capital firm Mundi Ventures is tackling this problem head-on with its newly launched Kembara fund, a whopping €750 million deep tech and climate-focused fund designed to support European startups as they scale globally.
What sets Kembara apart is its approach to scaling startups. The fund focuses on Series B and C rounds, with initial checks ranging from €15 million to €40 million, followed by potential follow-on investments of up to €100 million per company. This is a significant boost for European startups looking to make their mark on the global stage.
Yann de Vries, co-founder of Kembara, has a deep understanding of the European startup ecosystem, having co-founded Redpoint eVentures Brazil and later becoming a partner at Atomico. His experience with Lilium, the German electric plane startup that ceased operations despite raising over $1 billion and going public via a SPAC, has given him valuable insights into the scaling challenges faced by European startups.
“A lot of people say that Europe has an innovation problem or a startup problem, but that’s not true,” de Vries said. “The problem is a scale-up problem. Europe has amazing founders and teams, but they need support to scale their companies globally.”
Kembara’s focus on non-dilutive financing is designed to help deep tech founders de-risk their future financing and optimize their capital structure to reduce dilution. This approach is a breath of fresh air in the venture capital space, where many funds prioritize rapid growth over sustainable business models.
The fund’s unique business model, which combines local expertise with a global perspective, is what sets it apart. Kembara is designed to support European champions in deep tech, with a focus on dual-use and defense tech that “defends European sovereignty.” This sector is crucial for maintaining European independence and promoting economic growth.
The fund’s name, “Kembara,” which means “to wander” in Malaysian, reflects its global ambitions. With connections to the Malaysian sovereign wealth fund Khazanah, doors may open in the future as many countries analyze their exposure to the US. Kembara’s goal is to foster world champions that cross borders, with connections to global markets and supply chains.
“I’m excited about this fund,” de Vries said. “We’ll be looking for global investors who want to help us create a new European champion.”
Only time will tell if Kembara will succeed in bridging the Series B funding gap and helping European climate and deep tech startups scale to global success. But with its unique approach, expert team, and global ambitions, this fund has the potential to make a real impact on the European startup scene.
