360 Capital, a European venture capital firm, has announced the closing of its second Climate Tech fund, 360 LIFE II, with €140 million in assets. This fund aims to support innovative European startups in three strategic verticals: energy transition, circular economy, and urban sustainability.
With this closing, 360 Capital expands its active portfolio of investment funds, which includes the 360 Digitaly Fund (€30 million, launched in 2022) and the 360 Square II Seed Fund (€45 million, focused on early-stage ventures). These funds are part of 360 Capital’s multi-sector strategy to back European entrepreneurs in key industries.
360 LIFE II: Catalyzing European Climate Tech
360 LIFE II focuses on Series A and B companies, targeting deeptech and hardware solutions. The fund aligns with the Tibi 2 initiative and holds an Article 9 SFDR classification, ensuring compliance with European sustainable finance standards.
Its investors include industrial players such as A2A and De Nora, alongside institutional backers like Bpifrance and CDP Venture Capital. “The ecological transition is non-negotiable. We are leveraging our deeptech expertise to support visionary entrepreneurs capable of building sustainable businesses,” stated Alexandre Mordacq, partner at 360 Capital, in a press release.
The first fund, 360 LIFE I, exemplifies this strategy’s potential: it financed eight startups across five countries, including Energy Dome, an Italian pioneer in energy storage. Energy Dome raised €120 million in 2023 from major players like the European Investment Bank.
360 Digitaly Fund: Bridging the digital gap in Italy
The 360 Digitaly Fund targets early-stage Italian startups operating in sectors with low digital adoption. This €30 million fund, supported by CDP Venture Capital through the Digital Transition Fund – PNRR, focuses on disruptive digital solutions to transform traditional industries.
Since its launch, the fund has made five investments, including:
- Talentware (talent management),
- Soource (procurement platform),
- Guidoio (digital driving courses),
- Jampy (eco-friendly pet products),
- Zefi.ai, an AI platform that raised €1.6 million to expand its European operations.
“360 Digitaly is a bet on a new generation of Italian entrepreneurs. We aim to make Italy a go-to destination for launching startups in the coming years,” said Lucrezia Lucotti, partner at 360 Capital.
360 Square II: An early-stage fund for Southern Europe
With 360 Square II, a €45 million fund, 360 Capital builds on the success of its first fund, 360 Square I, which invested in 24 startups, including standouts like Exotec, Preligens, and Casavo. The new fund focuses on pre-seed and seed investments, with tickets ranging from €200,000 to €2 million, primarily in deeptech, B2B software, and consumer tech sectors.
The fund targets France, Italy, and Spain and is backed by investors such as Bpifrance (via the Fonds National d’Amorçage 2), MAIF Avenir, and Crédit Mutuel Arkéa. “This stage in the startup lifecycle offers the best risk-return combination,” said Fausto Boni, co-founder of 360 Capital.
A year marked by strategic exits
In 2024, 360 Capital recorded two significant exits:
- Regate, specializing in financial solutions for businesses, was acquired by Qonto. With 450,000 clients and total funding of €27 million, Regate joins Qonto to form a dedicated department for financial services targeting accounting firms.
- Preligens, an AI-focused defense company, was acquired by Safran for €220 million. This acquisition strengthens Safran Electronics & Defense’s capabilities and accelerates Preligens’ development in the U.S.
However, not all portfolio companies escaped challenges. French startup Prophesee, a fabless semiconductor firm specializing in vision sensors, entered receivership. Despite raising over €100 million, including a €50 million round in 2022, and signing a major technology partnership with Sony, Prophesee faced difficulties amid a tightened economic environment. This highlights the risks faced by capital-intensive startups in uncertain times.
