AP Ventures closes $300m Fund III to back early-stage industrial and energy technology
The London-based investor, which began inside Anglo American Platinum, has already backed 13 companies from the fund. It invests at seed and Series A in technologies for energy-intensive industries.
AP Ventures, an independent venture capital firm based in London, has announced the final close of its third fund, AP Ventures Fund III, at $300 million. The firm's announcement, published on 28 October, says the money came from existing and new institutional investors.
Since its first close in 2024, Fund III has already backed 13 portfolio companies. They develop technologies for industrial and energy systems, from advanced materials to industrial processes and energy systems. EU-Startups puts the fund size at about €270 million.
Who invested
AP Ventures did not name its limited partners. According to the announcement, Fund III is backed by sovereign wealth funds, corporates, pension funds and family offices. The firm says it connects its limited partners and portfolio companies to a specialised network drawn from its team, investors and the wider industrial community.
The firm has industrial roots. EU-Startups reports that AP Ventures began as part of Anglo American Platinum's investment programme for platinum group metals, and became an independent venture fund in 2018. At that time, Anglo American Platinum and South Africa's Public Investment Corporation each committed $100 million as cornerstone investors. AP Ventures is headquartered in London and has offices in Johannesburg and San Francisco.
"This final close reflects the confidence our existing and new investors place in AP Ventures' ability to identify and support exceptional technology companies," founder and managing partner Andrew Hinkly said in the announcement.
What the fund backs
Fund III invests at seed and Series A and stays involved through commercialisation, industrial deployment and scale-up. It has three focus areas: low-carbon molecules, including hydrogen, across production, storage, transport and use; carbon capture and utilisation; and circularity and advanced recycling.
The target customers are energy-intensive industries that are hard to decarbonise, such as chemicals, steel, aviation and heavy transport.
Portfolio examples
The firm named several current Fund III companies. Teragen Energy develops solid oxide fuel cells that can provide on-site power for data centres. Aether Fuels turns industrial waste gases, biogas and biomass into liquid fuels for aviation and shipping. CREW Carbon replaces conventional wastewater treatment chemicals with a mineral-based process. Rosy Soil sells peat-free potting soil made from biochar. Reclinker uses the electric arc furnace process from steelmaking to turn used cement into new cement. EU-Startups also lists Lydian Labs, which makes synthetic fuels from electricity, water and CO2, and Rubi Laboratories, which turns CO2 into cellulose for textile fibres.
Several of these companies are based in the United States. Reclinker, according to EU-Startups, is based in Cardiff. The fund invests globally, so European founders compete with US startups for its capital.
"We focus on backing technically differentiated companies that solve real operational problems across the industries and value chains in which we invest," founding partner Kevin Eggers said in the announcement.
Why this matters for European founders
Industrial and energy technology is one of the hardest areas to fund at early stage. Companies need laboratory work, pilot plants and long sales cycles with large industrial customers before revenue arrives. Many generalist venture funds avoid that risk. A dedicated $300 million fund that specialises in it, and that has industrial investors behind it, is good news for founders in hydrogen, carbon capture, alternative fuels and materials recycling.
The fund's themes also match a shift in how investors talk about climate technology. The announcement frames the opportunity around productivity, supply security and resilience, citing rising power demand, tight supply chains for critical minerals and the growing role of AI and automation in industry. For founders, pitching cost savings and supply security alongside emissions cuts is becoming the norm.
For European ecosystem builders, it is another sign that London remains a base for specialist deep tech funds with a global reach. Founders on the continent can approach such funds, but should be ready to show customers and pilots that compete with strong US teams. More fund news is on our Funding page, including Seaya's €600m growth fund and the €30m round for French startup Elax Energie.
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