ETF Partners, a climate tech investment firm, is taking a different approach to combating climate change. While many investors focus on deep-tech solutions like carbon capture and storage, Patrick Sheehan, a partner at ETF Partners, believes in the power of software-centric companies to make a significant impact in a shorter timeframe.
Sheehan’s philosophy is clear: “We need to find companies we can scale rapidly to have an impact within the lifetime of a venture capital fund. That’s 10 years maximum.” This mindset has led ETF Partners to raise an oversubscribed €284 million fund, their fourth since their founding in 2006.
Instead of investing in technologies like fusion and e-fuels, ETF Partners is looking for startups like Deepsea, which uses AI to optimize maritime shipping operations and reduce fuel use by 10% to 15%. Sheehan emphasizes the importance of finding companies with revenue that are ready to scale up quickly.
The firm focuses on five key verticals, including energy, transportation, connectivity, consumer, and food and agriculture, all with the common theme of adding an intelligence layer on top of existing infrastructure. Sheehan highlights the favorable government policies and public support for climate action in Europe as a driving force behind their focus on European startups.
In a world where climate change is a pressing issue, ETF Partners’ approach of investing in software-centric companies with revenue and scalability potential could be a game-changer in the fight against climate change.