When I started Impact Loop about 2,5 years ago, the big trend in the impact investor community was to create the next big climate tech unicorn.
Today, those times are gone – which we can see clearly in our deep-dive of the impact funds launched and closed during the first quarter of 2026.
After interviewing a majority of partners and of the new funds, a clear pattern emerges. Investor after investor is distancing themselves from the traditional venture capital playbook.
"A lot of the most important climate companies won't ever be unicorns," said Alice Besomi at Eurazeo, one of Europe’s largest investment groups.
"We're not necessarily chasing moonshots or unicorns," echoed Chloé Giard at Paris-based venture capital firm SlateVC.
Money's flowing to the middle
At the same time, capital is moving towards the so-called "missing middle." Multiple funds – from Chi Impact Capital's €120m catalytic vehicle to Climate Investment's $450m decarbonisation fund – are explicitly targeting companies too mature for venture capital but too early for private equity.
The language of "scaleups," "growth stage," and "commercial maturity" dominates, signalling that investors are betting on proven technologies rather than speculative bets.
The geographic and thematic scope is also broadening. While most impact funds remain influenced by their origin countries, funds are increasingly pan-European in ambition.
French Asterion Ventures opened an Amsterdam office to court startups from Spain, Belgium, and Germany. Whilst Norwegian VC Katapult launched a dedicated Nordic ocean fund. This expansion suggests Europe has become more important as an investment theme than ever before.
Sovereignty and resilience dominate
Beyond geography, sovereignty and resilience have – to nobody's surprise – continued as powerful investment themes. "We're at a moment where Europe is fighting for its economic sovereignty," said Michal Bas at Polish venture firm Montis VC.
Eurazeo's fund explicitly targets companies making industries "more sovereign," whilst French VC Daphni is debating defence investments – a once-taboo topic in impact circles.
The fund explicitly targets companies making industries more sovereign
EIF is backing
The European Investment Fund's fingerprints are everywhere, anchoring funds from Seaya's €1bn vehicle to Mundi Ventures' €750m Kembara fund. Its €15bn fund-of-funds, backing up to 100 European VCs, signals that public capital is actively shaping where private capital flows.
Perhaps most telling is what remains consistent: despite Paris-based Partech calling this "the toughest fundraising environment in a decade," impact-focused funds continue to close. The capital is there – it's simply becoming more selective, more patient, and more aligned with Europe's industrial priorities.