ClimateTech pays as SyndicateRoom beats target for new fund
While no amount for the raise is being disclosed co-founder Tom Britton tells Business Weekly that the haul reflects that investors are increasingly seeking tax-efficient opportunities that deliver both financial returns and environmental impact.
He says the fund's performance comes at a pivotal time as investment into UK-based ClimateTech companies surged by 24 per cent in 2024, reaching £4.5 billion, demonstrating unprecedented investor appetite for sustainable innovation.
This growth reflects the UK's position as a global leader in climate technology investment, with ClimateTech attracting between 80 per cent and 90 per cent of impact investment, Britton reveals.
The success of the Climate Tech SEIS fund aligns with broader market trends showing over 10,000 investors per year are now utilising the Seed Enterprise Investment Scheme, with 10,145 claiming SEIS tax relief in the 2023-24 period. This represents a significant increase in participation as investors seek tax-efficient vehicles that offer up to 50 per cent income tax relief whilst supporting innovative startups addressing climate challenges.
“With the cap coming in on Cash ISAs, investors may wish to explore opportunities that put their money to work for both their own benefit and that of our environment,” said Britton. The timing is particularly relevant as investors conduct year-end financial reviews and seek tax-efficient strategies before the December deadline, he adds.
Carbon13, the climate tech venture builder partnering with SyndicateRoom on the fund, has been instrumental in identifying and nurturing startups that tackle urgent environmental challenges.
“2025 has demanded a renewed focus on how we continue to work on the world's most urgent problems – ambitious founders want nothing less,” said Dr. Nicky Dee, Founder and CEO of Carbon13.
The fund focuses on early-stage climate technology companies across diverse sectors including renewable energy, sustainable agriculture, carbon capture and circular economy solutions. Through SyndicateRoom's co-investment model, individual investors can partner alongside experienced angel investors, providing enhanced due diligence and portfolio diversification.
Since its establishment in 2012, SyndicateRoom has deployed over £77 million into more than 250 portfolio companies, with the platform's user-friendly online process making startup investing accessible to a broader range of investors. The Climate Tech SEIS fund represents the company's commitment to channelling capital towards solutions that address the climate crisis whilst delivering attractive returns for investors.
The UK's leadership position in ClimateTech investment creates a compelling opportunity for investors seeking to support innovative solutions whilst benefiting from significant tax advantages. SEIS investors can benefit from income tax relief of up to 50 per cent, tax-free capital gains, and inheritance tax relief, making it an attractive proposition for high-net-worth individuals and their financial advisors.
As the year-end approaches, financial advisers are increasingly recommending ClimateTech investments as part of diversified portfolios that align with clients' values whilst optimising tax efficiency. The Cambridge fund's performance demonstrates that environmental impact and financial returns are not mutually exclusive, particularly in the rapidly growing climate technology sector, Britton adds.