TLDR:
- Pollination Group predicts an increase in venture capital investments in Australia, particularly in climate change and nature-related technologies.
- A new fund is being launched to invest in early-stage Australian companies, with Queensland Investment Corp. as an investor.
A climate change advisory and investment firm, Pollination Group, is optimistic about the prospects for venture capital investments in Australia. The firm is launching a new fund aimed at investing in early-stage Australian companies that are developing climate change and nature-related technologies, with a target of raising A$150 million by the end of the year. Queensland Investment Corp., a state-government owned entity, is investing in the vehicle, which will focus on industries like food and agriculture.
With expectations of declining interest rates over the next two years, companies in Australia are feeling more confident in moving forward with growth plans and raising capital. Pollination’s chief investment officer, Diana Callebaut, emphasizes the importance of new technologies and solutions in transitioning to net zero emissions. Recent government stimulus measures are expected to support heavy industry and transport sectors in this transition.
Private markets globally faced challenges in 2023, with fundraising in Australia plummeting by 43% to A$10 billion as interest rates rose and lending markets tightened. However, conditions are improving as global investors seek diversification in Australian markets and there is increased clarity on national climate policies. Pollination Group, which launched in 2019 and has ANZ Group Holdings Ltd. as an equity stakeholder, advises companies on reducing emissions and counts Qantas Airways Ltd. and BHP Group Ltd. among its clients. They also have a joint venture with HSBC Holdings Plc called Climate Asset Management, which manages approximately $1 billion in funds.
