ERV targets $50M for second electrification fund, anchored by Centrica
What's the deal? Energy Revolution VenturesDealroom has a profile for this one. Try Dealroom → (ERV) has announced the first close of ERV Fund II, its second fund targeting early-stage electrification technologies. The London firm is aiming for $50 million, nearly triple its $18 million debut fund.
Who's backing it? UK energy and services company Centrica anchored the fund with a $13.5 million commitment. The fund will target seed and Series A rounds in energy storage, grid technology, and advanced materials.
What's the endgame? Founded in 2021, ERV invests in energy transition startups across energy storage, grid technologies, advanced materials, renewable fuels, and carbon capture. It expects the falling cost of core hardware to reshape entire industries.
"Batteries, motors and power electronics, the building blocks of electrification, have each fallen to a fraction of their cost 20 years ago," said Marcus Clover, co-founding general partner. He added that "the cost of moving things, heating things and making materials will converge on the cost of electrons."
Why now? ERV points to the electrification of transport, heating, and industry, plus rapid data center growth, driving up electricity demand. That is straining the grids, storage systems, and materials needed to deliver reliable power.
The signal: A strategic energy company anchoring nearly a third of a venture fund shows corporates are increasingly treating early-stage energy tech as a route to secure future supply, not just a financial bet. "ERV's deep understanding of the innovation taking place across energy storage, transmission and generation aligns closely with our mission," said Centrica group chief executive Chris O'Shea.
Read more: esgtoday.com
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