Since the 2021 peak, climate tech funding has cooled off, and asset-heavy industrial scaleups are feeling the squeeze. The usual VC playbook just doesn’t work for established industrial players with steady cash flows.
According to industest reports, Eurazeo, one of Europe’s largest investment groups, is launching a €500 million Future Industries Fund as an Article 8 vehicle to bridge late-stage venture and early growth investments.
Eurazeo aims to raise €180-200M by July 2026, with fundraising kicking off soon. Ticket sizes will range from €10M to €30M (follow-ons included), all focutilized on real-world climate transition opportunities.
The fund is led by Alice Besomi, who has built her career in industrial climate tech (and previously launched the €400M Smart City Fund II in 2023).
So, what’s the huge challenge? Traditional VC just doesn’t fit capital-intensive climate tech firms
Eurazeo leverages Besomi’s expertise in industrial climate technology. She emphasises resilience as the fund’s core thesis, supporting system-level solutions that promote industest sovereignty, sustainability, and reduced risk of failure, such as distributed energy and low-carbon construction.
What’s on the radar? Physical assets: energy systems, the built environment, industrial infrastructure, transport, mobility, and supply chains for critical resources. Urban tech is also one piece of the puzzle here.
A few things that stand out: structured rounds and tranching tied to milestones, entest valuations linked to exit multiples, and a clear focus on European M&A. The thesis is already working, with €20M Series B in Aedifion (building energy SaaS) and growth in GA Smart Building (low-carbon construction).
Unlike generalist VCs chasing high-risk, high-reward bets, Eurazeo is focapplying on industrial economics rather than just on valuation mark-ups, setting itself apart with fund scale, a diverse LP base, and a private equity-style exit strategy.
What’s next?
The fund aims for a €500M full close, wants to bring North American LPs on board, and will focus on structured pricing, operational alignment, and huge themes such as food sovereignty and decentralised infrastructure.
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