Clim8, the UK-based climate-focused investment app, is set to cease operations at the end of May due to the challenging economic conditions.
The fintech was founded in 2019 and launched two years later with the intention to offer investors access to publicly listed companies and funds that were involved in tackling the climate crisis.
More specifically, Clim8 focused on the clean technology sector and companies working with smart mobility, the circular economy, clean water and sustainable food.
In that time, it has raised more than £12 million from institutional investors such as Channel 4 Ventures and the British Business Bank and also brought in more than £6 million from crowdfunding.
However, one of the reasons for closing down, cited by chief executive Duncan Grierson, was the difficulty in raising further capital.
“We have seen a large amount of greenwashing in financial services around so-called ‘ESG’ investing, and we wanted to offer a better product,” wrote Grierson on the Clim8 blog.
“Trying to disrupt an industry is a big mountain to climb. Coupled with dramatic changes in the economic environment and inflation, the appetite for investing in startups has changed over the last year. We have been unable to secure further venture capital to fund the ongoing business.”
According to Grierson, the company remains solvent with enough cash to cover its costs, but it will close all accounts by May and is not taking on any new business.
In the meantime, the search is on for a new buyer, while current Clim8 customers have less than 60 days to decide what to do with their investments. One option is to move their accounts to online investment platform Wealthify which has stated that it will offer customers a sign-on bonus to move.
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