Schneider Electric has joined forces with Alstom to launch a venture capital fund to finance innovative start-ups in the fields of energy and the environment. The partners believe that this is the first time that two major industrial groups have been associated in a joint initiative of this nature.

The Paris-based fund, called Aster Capital, will receive progressively a capital subscription of €70m (€40m from Schneider and €30m from Alstom). Other industrial partners may be invited to join the initiative.

Aster Capital will take minority interests in innovative start-ups in Europe, North America and Asia, developing new technologies that could lead to breakthroughs in the fields of energy and the environment.

The scheme will benefit from the venture capital expertise that Schneider Electric Ventures has accumulated since 2000 by managing €50m invested in more than 20 companies in North America and Europe.

The two founding partners have a shared aim to support the development of innovative young companies and to nurture co-operation and partnerships for their markets.