A New Venture Capital Fund Focused on Sustainable Cities

A new VC fund, named 2150, has commenced operations with an initial closing of €200 million ($240 million). This fund will concentrate on backing technologies designed to significantly lessen the environmental impact of urban centers.

Investments will target companies developing solutions such as carbon injection into concrete and advanced building energy monitoring systems. The fund anticipates a final closing by the middle of 2021.

Expert Guidance and a Critical Mission

The 2150 advisory board boasts prominent figures, including the former chief sustainability officer from the Obama administration and acclaimed urbanist Richard Florida.

The fund is founded on the premise that, with half the global population currently residing in cities, and a projected increase to two-thirds by 2050, the environmental strain on the planet will escalate, posing a substantial challenge in the context of the ongoing climate crisis.

Geographic Focus and Investment Partners

Operating from offices in London, Copenhagen, and Berlin, 2150’s investors comprise both institutional capital and family offices.

Key limited partners include Chr. Augustinus Fabrikker, Denmark’s Green Future Fund, and Novo Holdings. Furthermore, 2150 has attracted partners involved in the construction or management of “over 16 million square meters of real estate”, providing valuable insight into the effectiveness of potential investments.

NREP, a sustainable real estate fund manager with a strong presence in Northern Europe, provided the anchor funding.

The Founding Team

The fund’s founding partners represent a diverse range of expertise:

• Mikkel Bülow-Lehnsby, chairman and co-founder of NREP
• Jacob Bro, former chief product officer at Rocket Internet
• Christian Jølck, founder and former chairman of SYNERGI
• Christian Hernandez, former Facebook executive and VC
• Nicole LeBlanc, previously with Alphabet’s Sidewalk Labs
• Rahul Parekh, founder of EatFirst and former executive director at Goldman Sachs
• Alexandra Perez, who launched urban tech startups at Tech City Ventures

Investment Strategy and Focus Areas

2150 will prioritize startups focused on enhancing urban resilience, efficiency, and sustainability.

The fund will invest in technologies related to the urban environment, advanced materials, automation, and sensor-based monitoring, all aimed at improving the health, safety, and productivity of building occupants. Investments will be made only in ventures where sustainability impact is demonstrably measurable.

The initial portfolio is expected to include approximately 20 companies, with ticket sizes of €4-5 million for Series A funding rounds, alongside investments in existing companies seeking expansion.

Initial Investment and Emerging Trends

2150’s first investment is in CarbonCure Technologies, a Canadian company dedicated to reducing the CO2 footprint of concrete.

This investment was made alongside Amazon’s Climate Pledge Fund, Breakthrough Energy Ventures (backed by Bill Gates), and Microsoft’s Climate Innovation Fund. Currently, concrete production accounts for 8% of global CO2 emissions.

Hernandez highlighted the fund’s strong interest in “ESG Analytics” and “Carbon Accounting” – platforms capable of analyzing the environmental, social, and governance impact of developments.

Underlying Data and the Urgency of Innovation

The fund’s creation was informed by several key statistics:

• Two billion new homes will be required over the next 80 years.
• Cities consume over two-thirds of the world’s energy.
• Cities are responsible for more than 70% of global CO2 emissions.
• 13% of global GDP is allocated to construction, yet the industry is slow to embrace technological advancements.
• The UN emphasizes the need for groundbreaking innovation in cities to achieve sustainable development.

Vision and Commitment to Sustainability

Mikkel Bülow-Lehnsby, partner at 2150 and chairman and co-founder of NREP, stated: “Building on NREP’s 15-year commitment to efficient, customer-focused, and sustainable real estate and cities, 2150 leverages our learnings and partnerships to accelerate technologies supporting our purpose of improving real estate.”

He further expressed confidence in the team’s ability to shape a future where entrepreneurship, technology, and sustainability converge to mitigate the built environment’s negative impact.

Reimagining the Urban Environment

Christian Hernandez, Partner at 2150, noted: “Cities are dynamic systems constantly evolving, and now home to half the world’s population. While cities drive progress, they currently generate 70% of global greenhouse gases and most of the planet’s waste.”

He emphasized the opportunity to significantly impact urban development and improve the lives of citizens through a complete reimagining of the urban environment.

Advisory Board Expertise

The 2150 advisory board includes a diverse group of experts:

• Bjarke Ingels, renowned architect
• Dr. Lynn Loo, director of Princeton’s Andlinger Center for Energy and the Environment
• Danny Lange, head of AI at Unity
• Christine Harada, former chief sustainability officer in the Obama Administration
• Coen van Oostrom, founder of sustainable developer EDGE Technologies