Venture capital firm 2150, the urban innovation arm of Urban Partners, has raised €197 million for its second fund aimed at transforming the infrastructure of cities globally. With a sharp focus on the ‘urban stack’—ranging from next-gen building materials to sustainable energy and mobility solutions—the fund is backed by a consortium of influential European and U.S.-based institutions. 2150 plans to invest in 20 Series A and B startups, targeting transformative technologies that improve urban resilience. Beyond financial metrics, the firm tracks environmental impact, aligning returns with long-term sustainability goals, such as reducing carbon emissions and conserving water.

Strategic Fundraising to Reimagine Urban Living

2150’s latest fundraise underscores growing investor interest in startups tackling the world’s most pressing urban challenges. The €197 million fund—backed by institutional heavyweights such as Novo Holdings, the Augustinus Foundation, EIFO (Denmark's state-backed investment fund), and the Church Pension Group in the U.S.—reflects a collective push towards sustainable urban development. Prominent family offices like Germany’s Viessmann Generations Group and Finland’s Virala Group and Security Trading Oy also participated, affirming cross-border alignment on climate and city-focused innovation.

Defining the 'Urban Stack' Investment Thesis

2150’s strategy revolves around what it calls the “urban stack”—a term encompassing a wide range of solutions aimed at making cities more sustainable, livable, and efficient. From advanced construction materials to electrified transport infrastructure, the firm is betting on technologies that touch nearly every aspect of urban life.

Cofounder Christian Hernandez describes the thesis succinctly: "We’re investing in the essential flows of a city—the inputs like clean water and electricity, and the outputs like waste and emissions." The focus isn’t just on digital transformation but also on “physical stuff that hasn’t existed before,” ranging from hard tech to deeply integrated infrastructure solutions.

Portfolio Strategy: A Mix of Vision, Scale, and Impact

The fund is designed to back 20 early-growth startups, split equally between Europe and the United States. 2150 will deploy investments in the €3 million to €15 million range per company, focusing on Series A and B rounds. To maintain meaningful influence and upside, the firm aims for double-digit equity stakes, ranging from 7–17% ownership, depending on the opportunity.

What sets 2150 apart is its commitment to supporting founders with multidisciplinary backgrounds—those who combine scientific rigor, manufacturing know-how, and commercial insight. This multidisciplinary requirement speaks to the firm’s belief that solving urban challenges requires more than just a great pitch; it demands deep, scalable execution.

High-Impact Investments Already in Motion

Despite being in its early deployment phase, 2150 has already made three impactful investments:

Metycle (Cologne): A €14.1 million Series A round into a digital marketplace for global metal recycling, helping drive a circular economy for materials.

Mission Zero Technologies (London): A £22 million Series A round into a startup developing carbon capture technology aimed at removing CO₂ directly from the atmosphere.

AtmosZero (USA): Participated in a $21 million Series A round to back this startup’s development of industrial heat pumps, which offer a cleaner solution for producing industrial steam.

These investments exemplify the fund’s commitment to tangible, systemic urban improvements rather than short-term technological fads.

Beyond Profit: Environmental KPIs Drive Portfolio Performance

2150 doesn’t just measure ROI—it also evaluates its portfolio companies against environmental impact benchmarks such as air pollution levels, water conservation, and carbon mitigation.

In 2023 alone, companies backed by 2150 collectively mitigated nearly one megatonne of CO₂ emissions. Hernandez expects that figure to increase significantly in 2024 as the new fund scales. These metrics are critical for the firm’s long-term impact thesis, which integrates profitability with sustainable outcomes.

A Forward-Looking Blueprint for Urban Resilience

With cities under pressure from climate change, rapid urbanization, and aging infrastructure, 2150’s approach offers a much-needed blend of venture capital innovation and planet-first investing. By aligning its financial strategy with concrete environmental results, 2150 is carving out a leadership position in the emerging field of climate-resilient urban VC.

Its growing network of limited partners, its operational presence across London, Oslo, Berlin, and Copenhagen, and its early investments in hard-hitting urban tech signal a long-term commitment to reshaping how cities function—and thrive.