Newly launched Utopia Capital aims to deploy EUR 10m-plus by 2028

Ero Partsakoulaki
26 April 2023

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German angel investor Christian Schroeder has launched Utopia Capital, a new investment vehicle targeting early-stage technology companies addressing climate change, world hunger, health and poverty.

The firm hopes to invest more than EUR 10m in new deals over the next five years via its balance sheet and the returns its founder has secured on various investments, Schroeder told Unquote. The former investment director at Germany-based venture capital firm Global Founders Capital and founder of venture firm 10x Value Partners, said he is not planning to launch a fund for Utopia Capital in the next two years.

Having completed five investments since 2022, the firm is at the due diligence stage before closing a deal with a Germany-based startup developing technology to reduce consumption in container ships through changing the chemical structure of the fuel, he said.

Utopia Capital will deploy between EUR 100,000 and up to EUR 500,000 per deal in early-stage companies, including some pre-seed and seed investments, he added, noting that it will consider co-investments alongside family offices −mostly based in Germany.

Investments
The firm's impact investment thesis is largely targeting carbon sequestration and climate tech startups, said Schroeder.

"We look for companies that solve big problems in an innovative, novel way that is truly disruptive when it comes to addressing a global humanitarian issue, often providing 10x cheaper solutions than conventionally thought possible," he added.

The firm has invested so far in US-based plant growth technology company Argarius, which seeks to address world hunger by increasing agricultural crop yields by 10%- 50% through a bio-engineered soil stimulant, as well as UK-based 1010 Solutions, a river restoration company that neutralises pollution by cultivating the dominant native species of river systems using pollutants as nutrients, also sequestering large amounts of carbon and heavy metals.

Other companies Utopia Capital has backed include ArcBuild, which is based in the US and specialises in the delivery of sustainable, cost-effective modular housing solutions, as well as a Norway-based Carbon Crusher, which builds more durable, carbon-negative roads at a lower cost compared to conventional road construction.

The team at Utopia Capital is comprised of founder and CEO Schroeder and venture partner Ziyaad Aboobaker. They are working closely with the investment team of Schroeder's 10x Value Partners, which invests mostly in revenue-generating software and fintech startups.

Looking ahead, the founder is bullish on the early-stage market, already observing deal flow picking up, especially when it comes to AI, climate and impact tech opportunities.

"There's currently a lot of dry powder prompting activity and driving demand for innovative solutions −that might not even exist today− to solve the problems that humanity is facing," he said, noting that later-stage deals have slowed down mainly due to the "very high" watermark valuations raised in the last two years.