2C Ventures is a €40 million early-stage cleantech VC fund based in Estonia that invests in startups from pre-seed to Series A across the Nordics and Baltics. It focuses on scalable, high-impact technologies that drive decarbonisation, a circular economy, and sustainable energy solutions. The fund’s team combines industry experts, VC veterans, and startup builders, helping startups scale beyond the capital. 2C Ventures has backed five investments and will make 35 out of this fund.
Fund strategy overview
Geography: Nordics and Baltics
Preferred industries: cleantech
Investment ticket: €250k–1M
Company stage: pre-seed to series A
Product type: agnostic, but hardware preferred
Product stage: agnostic
Revenues: agnostic
Q&A with Martin Koppel, Partner at 2C Ventures
What are the 5 main things you look for in a startup?
The focus and importance of each aspect may be different depending on the stage of the company, but fundamentally it is team -> market -> product. Speaking more specifically:
- Founders & team: passionate, experienced, and resilient entrepreneurs with complementary skills.
- Market opportunity: a sizable and growing market with a strong need for the solution.
- Technology & product: a solution with a clear path to scale, ideally with a defensible competitive edge.
- Impact: the ability to drive real-world environmental impact in line with cleantech principles.
- Business model & traction: early signs of product-market fit and a clear roadmap to revenue growth.
What disqualifies a startup as your potential investment target?
Fundamentally the very first disqualifier is misalignment with our investment thesis (the Nordics/Baltics, cleantech, early-stage). Other disqualifiers iclude:
- Lack of a strong and coachable team;
- No clear path to scalability or commercial viability;
- Insufficient differentiation or clear positioning;
- Unrealistic expectations around valuation or unwillingness to collaborate.
What in your opinion differentiates the best founders from the rest?
- Resilience, turning setbacks into learning opportunities.
- Execution speed and adaptability in the face of challenges.
- Strong leadership skills, including attracting top talent and investors.
- Focus on both short-term execution and long-term strategy.
What startups should take into account before making a deal with a VC fund?
The VC track is only one path forward for companies. To begin with, a startup needs to understand what it means to take the VC track and how that affects the company’s future, growth trajectory, and the rest. Then, it is important to understand the next fundraising steps and implications of the current round. The cap table needs to always be fundable, i.e., what is the size of the option pool, how much are founders still holding, and how much dead equity do I have on my cap table? The rest is related to specific funds.
“Startups need to remember that this is a long-term relationship, which means alignment and personal click matter.”
To sum up:
- Alignment on long-term vision and expectations for growth;
- The investor’s track record and ability to provide strategic support;
- Terms of the deal — especially dilution, governance, and exit strategy;
- Cultural fit and whether the VC will be a true partner, not just a capital provider.
What is your approach to startup valuation and preferable share in the company?
Valuation is based on traction, team strength, market size, and comparable deals. We aim for a fair valuation that allows the founders to remain motivated and retain significant ownership. There is a fair balance; if we push too hard on the deal, we may lose in the long run. We typically lead or co-invest in early-stage rounds, and our tärget ownership is 10%.
How do you support your portfolio companies?
- Hands-on strategic support in scaling operations and fundraising;
- Access to a strong network of investors, industry experts, and partners;
- Help with hiring key talent and building high-performing teams;
- Providing insights on market trends, regulations, and growth opportunities;
- Long-term mentorship and operational guidance beyond funding rounds.
What are the best-performing companies in your portfolio?
Our fund started in January 2023, it is too early to say.
What are your notable lessons learned from investments that didn’t work out as expected?
It is too early to say in the context of our current fund, but based on past investments:
- Good and resilient founders can find the path through tough times, average founders can get lost even in a strong market;
- The importance of founder-market fit — passion alone isn’t enough;
- A need for a clear commercialization strategy, not just strong tech;
- Overcapitalization can sometimes create inefficiencies instead of accelerating growth.
What are the hottest markets you currently look at as VC and where do you see the biggest hype?
- Battery tech, and grid optimization;
- Circular economy solutions and sustainable materials;
- Carbon capture and industrial decarbonization.
“The biggest hype? AI-driven climatetech and fusion energy.”
In your view, what are the key trends that will shape the European VC scene in the coming years?
The European VC market is shifting toward capital efficiency, deeptech, and sustainability, driven by macroeconomic pressures, regulatory shifts, and evolving investor priorities. Early-stage funding remains strong, particularly in AI, climatetech, and strategic industries like semiconductors and biotech. We will see a rise in defence tech during the next 10 years.
Corporate VC and government-backed funds are playing a larger role, while cross-border investments from the US and Asia continue to rise. Investors increasingly focus on profitability and strong fundamentals, moving away from “growth at all costs.” M&A activity is expected to increase as IPO markets remain challenging, and EU regulations on AI, ESG, and data privacy will shape where capital flows.
The next wave of European innovation will be led by AI-driven solutions, sustainable technologies, and deep tech startups that align with both market demand and regulatory frameworks.
