TLDR:
Key Points:
- Clean Energy Ventures raised $305 million for its second fund to back early-stage climate startups.
- The fund was oversubscribed due to investor interest in emissions-reducing technologies.
In a recent article by CNBC, it was reported that Clean Energy Ventures, a climate-focused venture capital firm, raised $305 million for its second fund. The fund was oversubscribed, with limited partners such as The Grantham Foundation, Builders Vision, and Carbon Equity contributing to the raise. The new fund will focus on areas such as industrial decarbonization, plastics, and grid-enhancing technologies like virtual power plants.
The firm has already made investments in companies like Nitrofix and OXCCU, with a focus on technologies beyond traditional green investments. Clean Energy Ventures is also expanding its presence, opening a new office in London. Private equity investment in the energy transition is also on the rise, reaching nearly $30 billion in 2023. Private equity plays a critical role in helping companies transition from venture capital to public markets.
Despite the underperformance of clean energy stocks in the public market, there is still significant interest in decarbonization-focused companies in private markets. Clean Energy Ventures’ approach focuses on strategic sales rather than IPOs, partnering with private equity to help portfolio companies grow. The firm’s limited partners are not impact investors and are focused on returns.
Overall, Clean Energy Ventures’ new fund demonstrates the continued appetite for early-stage climate startups and the growing interest in emissions-reducing technologies in the private market.
