Ignitis Group is preparing for the second stage of investments in energy start-ups
An international energy company Ignitis Group is preparing for the second stage of investments into energy start-ups. Previous Ignitis Innovation Fund demonstrated not just high value growth, but it also provided the Group with new technological expertise, thus, it was decided to continue this line of action.
On June 16th Ignitis Group announced an international tender for the manager of the new fund. A 10-year fund management contract will be concluded with an option to extend it. Similarly, the fund will be oriented towards investments related to energy technologies.
The goal is for independent investors to account for at least half of the new fund’s investments. The total value of the fund should be over EUR 50 million, and Ignitis Group would contribute a EUR 25 million share throughout the duration of the fund’s activities. It is important to note that Ignitis Group is planning to invest gradually with the largest share of investments coming through within the first 4–5 years.
“Ignitis Innovation Fund has been operating successfully and has invested almost all of the planned funds, and it will no longer conduct investments into start-ups. We cannot increase the fund’s size, but we see the strategic value it brings to Ignitis Group, therefore, we have decided to continue investing into new technologies via a new fund”, said Paulius Kozlovas, Head of Innovation at Ignitis Group.
The new fund will invest into the start-ups that operate in the energy, e-mobility and climate technology sectors in their early and growth stages. At least half of the fund’s investments will be dedicated to start-ups operating within the European Union and the countries within the European Economic Area, and the remaining investments could be invested into start-ups operating in the USA, the United Kingdom, Israel, Canada, Switzerland.
Ignitis Innovation Fund was established in 2017 and is managed by Contrarian Ventures. It has already invested about EUR 9.7 million into 18 companies in eight countries. The companies are developing new technologies in the fields of energy and e-mobility that could be applied to the activities of Ignitis Group. The fund invested into start-ups together with 90 other co-investors, including such renowned international corporations as vehicle manufacturer Hyundai, energy giant Shell and Breakthrough Energy Ventures established by Bill Gates. The fund is financially sound, its asset value reached EUR 28.9 million at the end of the first quarter of the year.
