Mundi Ventures Secures €750M for Kembara, Europe’s Largest Deep Tech and Climate Megafund

Innovation in deep tech and climate solutions requires ambitious funding. Mundi Ventures recently achieved a significant milestone by closing the first tranche of €750 million for its flagship fund, Kembara, aiming ultimately for €1 billion. Based in Spain, Kembara is poised to become one of Europe’s largest investment vehicles dedicated to deep technology and climate-impact ventures.

This article explores what this €750 million first close means in the current investment landscape, breaks down the fund’s core objectives, and evaluates why large-scale financing is pivotal for deep tech and climate innovation.

What Is Kembara and Why Does It Matter?

Kembara is a megafund focused on deep tech and climate technologies. ‘Deep tech’ refers to startups and companies leveraging cutting-edge scientific and engineering advances often requiring long development timelines and substantial capital – including AI, robotics, advanced materials, and clean energy.

Spain-based Mundi Ventures structured Kembara to target a €1 billion fund size, with the first close at €750 million marking a major step toward this goal. This funding scale provides resources not only for early-stage innovation but also for scaling solutions to global climate challenges.

What Does It Mean to Close €750 Million?

In venture capital, a ‘first close’ means the fund has secured commitments totaling €750 million from investors. This allows fund managers to start investing while continuing to seek additional capital to reach the targeted €1 billion.

Achieving such a large first close in the climate and deep tech space is significant. These sectors often struggle to attract vast pools of capital due to longer return horizons and higher technical risk compared to other tech sectors.

How Does Kembara’s Fund Structure Impact Its Investment Strategy?

Kembara’s size and scope enable a multi-stage strategy:

• Early-stage investments: Supporting start-ups developing breakthrough climate and deep tech innovations when risk and capital needs are highest.
• Growth funding: Providing scale-up capital to companies demonstrating commercial validations and ready to expand.
• Long-term orientation: The fund’s deep pockets allow patience for complex technologies requiring years of R&D before profitability.

This contrasts with smaller funds which often focus only on quicker returns or later-stage deals, leaving a funding gap at critical innovation phases.

When Should Investors Choose Deep Tech and Climate Megafunds?

Investing via a megafund like Kembara suits investors that:

• Seek exposure to high-impact sectors addressing climate challenges and technological frontiers.
• Can tolerate longer investment horizons and understand deep tech’s inherent risks.
• Prefer a diversified portfolio managed by specialized teams with broad networks in R&D ecosystems.

For investors prioritizing shorter returns or less technical risk, traditional tech or sustainability funds might be more appropriate.

What Are the Real-World Trade-Offs in Such Large-Scale Climate Investments?

Big funds have advantages, but also face challenges:

• Pros: Ability to fund from early stages through scaling, catalyzing innovation pipelines, and attracting top-tier talent.
• Cons: Larger ticket sizes could overlook smaller niche startups, slow decision-making, and increased pressure for financial returns amid complex technologies.

In practice, managing this balancing act demands experienced teams who understand when to back disruptive yet risky ideas and when to focus on scalable, proven technologies.

How Does Kembara Compare to Other Climate Funds in Europe?

While Europe boasts growing climate tech funds, few have reached the €1 billion scale. This size provides Kembara a competitive edge to back a broad spectrum of innovations from AI-driven climate modeling to scalable clean energy hardware.

However, size alone isn’t sufficient. Fund management expertise, ecosystem partnerships, and a clear investment thesis also determine success. Mundi Ventures brings a track record in deep tech investing, positioning Kembara well to deliver impactful outcomes.

Quick Reference: Key Takeaways

• Kembara’s €750M first close is a landmark for deep tech and climate funding in Europe.
• Deep tech involves complex scientific innovations requiring patient capital.
• Megafunds fill investment gaps across early-stage to scale-up phases.
• Investors must weigh the trade-offs between risk, time horizon, and impact potential.
• Fund size offers advantages but also challenges like slower deal cycles and potential niche neglect.

What Should You Consider When Evaluating Climate and Deep Tech Funds?

Before committing to funds like Kembara, investors should assess:

• Fund’s experience and specialization in deep tech and climate sectors.
• Clarity of investment strategy across stages of innovation.
• Alignment with your risk tolerance and expected return horizon.
• Track record in supporting startups through complex growth challenges.
• Contribution to real-world climate impact beyond financial returns.

Final Notes on Strategic Investment in Climate Innovation

Kembara’s milestone reflects growing recognition that tackling climate change needs deep tech breakthroughs, supported by large-scale, dedicated capital. Nevertheless, investors must approach with caution, understanding that big funds face complexity in balancing financial performance with transformative impact. The real-world success hinges on management expertise, deal sourcing, and portfolio flexibility.

The next logical step for potential investors or stakeholders is to undertake a structured evaluation of funds like Kembara, focusing on their alignment with your strategic goals and constraints.

Your Action Plan: Choosing the Right Fund

Spend 15-25 minutes completing a decision matrix, scoring funds based on:

• Investment focus and technology coverage
• Fund size vs. agility
• Track record and team expertise
• Risk tolerance and time horizon compatibility
• Impact measurement commitments

This exercise helps clarify which fund aligns best with your expectations and capability to engage in the deep tech and climate investing landscape.