London and Milan-based NextSTEP invests €590k in UK CleanTech startups to drive sustainable innovation

NextSTEP, the venture capital fund of NextEnergy Group, has announced investments totalling €590k in five UK-based CleanTech startups, each developing innovative and sustainable solutions around recycling.

With headquarters in London and Milan, NextSTEP focuses on backing startups dedicated to reducing ecological footprints through innovative solutions in resource efficiency, emission reduction, and waste minimisation. The fund, launched in 2022, aims to be a leader in CleanTech investments, targeting ventures at the pre-seed and seed stages.

Claudio Colombo, Managing Director of NextSTEP, commented: “We are immensely proud of the milestones achieved in 2024. Our commitment to identifying and supporting emerging initiatives that contribute to a better planet not only fosters their growth but also reinforces our dedication to a sustainable and innovative future. As we look ahead, our vision remains clear: to expand our efforts in discovering and investing in UK-based startups and projects that drive meaningful and lasting change. This is just the beginning—we are determined to deepen our investments and build even stronger, impactful connections between Italy and the UK.”

The five startups to receive funding are detailed below, including the date in which NextSTEP invested.

• Pulpatronics (August 2024): This startup is disrupting RFID technology with their metal-free and chipless tags, designed to protect natural resources. Using an innovative laser-induced process, they imprint conductive circuitry directly onto paper, eliminating the need for metal components and simplifying manufacturing. This approach not only reduces costs but also cuts CO2 emissions significantly, saving 2,400 kg of CO2 for every million tags produced.
• Algapelago (November 2024): This startup is developing sustainable seaweed-based products aimed at revolutionising regenerative agriculture and beyond. By cultivating extensive offshore kelp forests, they produce natural fertilisers and animal feed supplements that eliminate the need for freshwater, land, pesticides or fertilisers. Their approach not only sequesters carbon and enhances marine biodiversity but also supports coastal communities through job creation and economic revitalisation. As the largest licensed kelp cultivator in the UK, Algapelago is committed to scaling its operations to create a global network of “algapelagos” and contribute to a greener future.
• ClearWatt (July 2024): This startup has developed a machine learning-powered app that accurately measures and certifies EV range and battery health. ClearWatt’s unique GPS-based approach eliminates third-party data limitations and enables OEM and telematics-agnostic deployment, ensuring maximum coverage and rapid scaling. ClearWatt EV Health Reports provide detailed advanced performance metrics, fostering trust between buyers and sellers throughout the entire sales process.
• Nina Energy (January 2024): A British-Ecuadorian startup that transforms agricultural waste into solid biofuels and biochar, offering sustainable alternatives to fossil fuels. Their innovative technology yields diverse secondary products like biochar, torrefied biofuels, and liquid products, enriching soil, reducing CO2 emissions, and providing sustainable energy solutions for various sectors.
• The First Element (June 2023): A British startup for clean energy solutions with its Smart Tank technology which enables the safe and scalable generation of green hydrogen. From homes to industries, TFE allows users to contribute to net-zero emissions by using water and renewable electricity.

NextSTEP was launched by NextEnergy Group to create meaningful impact in the CleanTech space. While its primary focus is on UK and Italian startups, the fund also invests across Europe and in the US. Its strategy includes identifying promising ventures emerging from accelerators, universities, and research centres. In addition, NextSTEP collaborates with established companies to develop bespoke open innovation programmes, targeting sustainability challenges with tailored solutions.

As part of its broader mandate, NextSTEP plans to expand its investment reach in 2025, building on its track record and enhancing collaboration between Italian and British markets.

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