Why does Verve Ventures invest in energy and resources startups?

Years ago, we took a step back as a company and asked ourselves: What are the biggest challenges we need to tackle as a society, and among those, where is the European startup scene competitive globally? Where is the most significant market potential found? Which topics are strategically important for Europe in ensuring future economic growth and resilience? Energy and resources are two of our major investment topics that fit all these criteria.

How so?

According to the International Energy Agency, electricity use is expected to increase by around 4% annually in the coming years. This means adding more than Japan’s annual consumption to the global grid over the next three years. Power-hungry data centers contribute to this rise. A continent that wants to play a role in the future of computing and manufacturing must invest in energy generation and storage. But the rationale for investing in energy startups extends beyond simply meeting growing demand for power. We need to decarbonize at the same time. While this is a daunting task, it is an enormous opportunity for Europe to ensure competitiveness, resilience, and prosperity. The energy transition is attractive to investors.

What are the concrete topics you look at in the energy space?

According to the International Renewable Energy Agency, solar energy capacity will rise more than 20-fold by 2050. As the electricity supply becomes increasingly weather-dependent, we must also increase long-duration energy storage. When it comes to clean energy generation, we believe that not only solar and wind energy but also next-generation geothermal and nuclear energy have their role to play. Finally, we’re also interested in technologies that make green energy transportable and turn green energy into fuels.

Why do we need decarbonization technologies if renewable energy generation increases so fast?

What can be electrified should be electrified. However, some industries cannot be electrified by current technologies. As a result, we need negative emission technologies if we want to limit global warming. According to the Intergovernmental Panel on Climate Change IPCC, we must reach several gigatonnes of annual CO2 removal by 2050. We have invested in several technologies in this space. Their negative emissions are still small today, but these technologies can eventually scale to have a real impact on the climate.

Where does the investment topic of resources fit in this picture?

The energy transition relies on critical materials, metals, and rare earth elements. Significant gaps between supply and demand are to be expected. One solution is to foster a circular economy and increase recycling efforts. This is the thinking behind our investment in a lithium-battery recycling company.

What is your personal motivation to work in this field?

I look at the world through the lens of an engineer. Energy and resources are key to assuring Europe’s prosperity in the future. And as one founder said, many people have forgotten where energy comes from. It’s not just magically there. We must invest in technologies that assure the convenience we have gotten used to.

Climate change presents an existential challenge. The good news is that Europe, unlike other countries, is committed to reaching net-zero emissions. The 100 billion Euro Clean Industrial Deal, unveiled in 2025, boosts the continent’s cleantech sector. Investor appetite for startups in this field is high. So the topics we invest in are more relevant than ever. At the same time, I’m optimistic about the passion and ingenuity of founders who bring novel solutions from the lab to an industrial scale where they matter. This is most satisfying to me, to learn about the engineering challenges and innovations in a field that underpins everything else.