Future Energy Ventures Secures €205 Million to Power the Next Wave of Energy Innovation

Future Energy Ventures, supporting ready-to-scale start-ups active in Europe, Israel, or the USA whose mission is to accelerate the energy transition and decarbonize society, led by Jan Lozek, Veronique Hördemann, Patrick Elftmann, Ohad Mamann, and others, has announced the closing of Future Energy Ventures Fund II with a volume of €205 million, along with a dedicated capital fund for Italy of €30 million.

With this milestone, FEV becomes the largest European advisor for energy-technology-focused venture capital investments.

FEV aims to back companies transforming the energy landscape through digital solutions, bolstering national energy independence, and driving new economic opportunities.

Lozek, who began his career in energy infrastructure before moving into venture capital in 2016, noted that the energy transition in Europe was already gaining strong momentum at the time. “Together with RWE, we launched our first fund and committed €300 million to early-stage technologies,” he said.

Since 2016, FEV has made roughly 50 investments and, in 2023, closed its latest fund at €235 million. The firm typically invests at late Seed, Series A, and Series B, backing startups with €1–2 million in revenue that are ready to scale.

FEV focuses on AI-driven, software-based solutions that optimise grid efficiency, enable demand flexibility, and integrate advanced technologies into energy systems. Beyond renewables, the firm targets electrification across buildings, industry, and transport.

“Coming from the energy sector, we were fascinated by how to connect batteries, buildings, and mobility assets to the grid and optimise energy flows,” Lozek said. Electrification, he noted, creates a new relationship between the energy system and end users, turning buildings, vehicles, and storage assets into active energy resources.

“We back technologies that make these energy flows more efficient and help connect assets to the system,” he added. In buildings, this includes next-generation energy management for heating, cooling, and storage.

Lozek believes the core technology for electrification already exists, “and our role is to back the companies positioned to scale it.” Earlier bets, such as home energy management systems, didn’t always scale, he admitted. “But now, with AI and electrification, the timing is finally right. Technologies that once lacked market readiness are suddenly essential.”

Crucially, FEV supports Series A and B startups at the stage where many struggle to scale. Lozek emphasised the importance of backing companies at true inflection points, where there is both an immediate market need and clear long-term scalability.

Data centres are expanding rapidly, and Lozek sees a pressing challenge: “how to connect them without compromising energy availability for homes and industry. Software that improves grid throughput, siting, and connection planning is becoming essential.”

He also pointed to the structural realities startups face in the energy sector: long procurement cycles, conservative utility cultures, and infrastructure built on decades-long timelines. “Energy companies often build for 40 years, so they’re cautious. Procurement cycles can be long, and changing legacy mindsets is tough. Our team’s sector experience helps founders navigate this,” he said.

Compared to the US, Europe still lacks strong exit pathways, a hurdle when aiming for a five- to six-year holding period. But there is positive momentum: countries across Europe are beginning to update pension fund rules to allocate more capital to venture, marking a significant structural shift for the ecosystem.

The vision behind FEV extends far beyond cleaner electricity. It imagines a fundamentally reshaped global economy, one where universal access to locally generated renewable energy reduces dependence on volatile imports and gives nations genuine sovereignty over their economic future.

With environmental policy under pressure and geopolitical tensions elevating the urgency of energy independence, this fund close marks a decisive shift toward security, resilience, and long-term sustainability. The move from volatile fossil-fuel reliance to locally controlled renewable systems is no longer aspirational; it is both an economic necessity and a strategic imperative.

According to Lozek, geopolitics has now elevated energy independence to the very top of the agenda.

The Fund was initially backed by E.ON SE and the European Investment Fund (EIF) as anchor investors. It has since expanded to include a broad group of strategic and institutional investors, including KFW Capital, ABN AMRO, CLP, BGK, ISA Energia, Borusan, Zorlu Holding, Telos Impact, KELAG, MTR, and Sabanci Climate Ventures.

The Italian vehicle is fully financed by CDP and invests alongside the main fund. Its launch reflects three converging factors: the team’s long-standing ties to Italy, a rapidly maturing innovation landscape, and strong investor appetite.

One of FEV’s partners, Jan Lesinski, grew up in Italy and maintains deep connections to the local startup ecosystem. Meanwhile, the country has undergone a meaningful transformation since 2016, with government initiatives and development banks strengthening the environment for founders and attracting talent back from abroad. The structure of the Fund further supported the decision.

Energy has become one of the most compelling investment sectors of this generation. Security needs, economic growth, employment, and cost-effective renewable solutions converge to make clean energy both critical for stability and an exceptional opportunity for investors.

This momentum creates ideal conditions for innovations that will complete the transition to a renewable energy world. FEV is well-positioned to identify and scale the technologies that will shape the energy systems of the future.

“Europe has the innovation power, talent, and industrial capacity to lead the global energy transition,” said Veronique Hördemann, Managing Partner and CFO of Future Energy Ventures.