BP sells venture portfolio to Nordic private equity firm Verdane

BP announced the sale of its corporate venture arm, offloading more than 10 companies to Verdane, a Nordic private equity firm. The deal marks the definitive end of the oil major's two-decade experiment in startup investing. It also aligns squarely with its broader pivot away from clean energy initiatives announced earlier this year.

The financial performance of the unit ultimately failed to justify its continuation in a market environment that increasingly demands capital efficiency. Last year, Axios reporter Alan Neuhauser noted that the portfolio was valued at about $1.2 billion. This valuation roughly matched the exact amount of capital BP had poured into the unit since establishing it in 2006.

Since its launch, BP Ventures backed a wide and varied mix of sectors tied to the energy transition. These investments spanned green hydrogen, e-mobility, ride-hailing, autonomous vehicles, private jet charters, and geothermal energy. In a press release, BP said it will "retain interests in a small number of investments where the technology has the potential to create value for its businesses."

For European climate tech startups, the departure of a major corporate backer immediately removes a key source of late-stage capital and strategic validation. Oil majors have historically been viewed as ideal partners for heavy-industry startups due to their massive scale and infrastructure. BP's retreat suggests European founders can no longer rely on fossil fuel giants to anchor their funding rounds.

Verdane’s acquisition shifts these varied assets away from strategic industrial backing to a purely financial investor. BP expects the portfolio sale to be completed in the second quarter of 2027. The company declined to comment on the fate of the venture arm's employees, citing local legal and regulatory requirements, though widespread layoffs seem likely as the unit is dissolved.