Clean Energy Ventures, a climate tech investment firm, has defied the frothy trends of the startup world by taking a disciplined approach to fundraising and investment. While many in the industry were tempted to raise money during the low-interest rate environment, Clean Energy Ventures remained cautious, especially when the COVID-19 pandemic hit.
Dan Goldman, co-founder and managing partner at Clean Energy Ventures, shared that they recognized the potential bubble in the market and decided to be careful with their investments. Despite the challenges, the firm successfully raised a second fund of $305 million, exceeding their initial target of $200 million.
The new fund will focus on early-stage climate tech startups, with a particular emphasis on “pre-growth” investments. These investments will target companies that have de-risked their technology and have a product in the market but are still in the early stages of market adoption.
To address the challenges faced by hardware-heavy climate tech startups, Clean Energy Ventures plans to reserve 30% to 40% of the fund for follow-on investments. The firm will also explore a variety of financial instruments to help bridge the gap for promising portfolio companies.
Institutional investors from around the world, including Builder’s Vision, Carbon Equity, and the Grantham Foundation, have committed to the fund. Industry LPs from countries like Turkey, Thailand, and Germany have also shown interest in Clean Energy Ventures’ focus on reducing greenhouse gas emissions and bringing new technologies to their countries.
Overall, Clean Energy Ventures’ strategic approach to fundraising and investment has positioned them as a leader in the climate tech space, attracting interest from investors globally.