UK’s Climate VC impact fund (on a roll)

UK’s Climate VC impact fund (on a roll)

Mar 31, 2022 3 min read
  • Climate VC announces new fund to back UK-based startups with the highest potential to cut carbon emissions and positively impact the fight against climate change with an initial target of 120 early-stage climate tech innovators backed within three years
  • Climate VC has £10M earmarked for investment in the first year of the fund, including two new portfolio companies announced today with the fund, Global OTEC and Tierra Foods
  • Ed Gillespie, member of Greenpeace’s Board of Directors joins Climate VC’s Impact Advisory Board alongside a former Google executive and advisors to the Ministry of Defence

London-based Climate VC has announced its first fund with no disclosed commitments, on a rolling fundraising model, with plans to invest in 120 UK-based early-stage startups, earmarking £10 million for the next year. Climate VC says it aims within a decade to start a sea change within venture capital, reshaping the received approach to climate. Climate VC has £10 million earmarked to be invested in the first year of the fund, starting with its first portfolio companies announced alongside the fund, Global OTEC and Tierra Foods.

Newly founded, Climate VC will be a specialist climate tech investor focused on finding and backing climate change startups it says “might have been overlooked by other VCs.” Conviction reached out to a spokesperson for comment who could not confirm the status of the investments in Global OTEC and Tierra Foods, whether completed or ongoing at the time of today’s announcement.

Climate VC says it aims to put equal emphasis on climate impact as it does commercial returns. The fund will be led by Peet Denny, Simrun Basuita and Andrea Emanuelli, backed by a team of tech specialists, operators and entrepreneurs.  

Climate VC’s limited partners include individual and institutional investors in the fund with plans over its lifetime to back 100-120 British early-stage climate startups in the next three years. The fund’s benchmark for success is 10 portcos removing 10 megatonnes of CO2 emissions per year for a decade. If you’re better at maths than Conviction, that’s a gigatonne of positive impact Climate VC is gunning for by the mid-2030s.

Watch for a couple more investments in Q2, following Climate VC's first two in the electricity provider for tropical islands Global OTEC, founded by Dan Grech and the rainforest agroforestry startup Tierra Foods, founded by Marcela Flores and Angela Newton.

Climate VC will target seven to ten deals per quarter, promising further news next month, April 2022. The fund is rolling and Climate VC aims to double funds every quarter, targeting £35 million-plus by 2025.

Peet Denny, Founding Partner of Climate VC:

“Startups that most excite us are those for whom generating revenue means dramatically reducing carbon from being emitted in their sector. Collectively, every participant in the Climate VC must share a common goal - to accelerate innovation with measurable, direct global impact to help save the planet and improve life for every person living on it.”

Ed Gillespie, a member of Climate VC’s Impact Advisory Board and member of Greenpeace’s Board of Directors:

“By investing in some of the most inventive and creative ways the human brain can imagine to reduce emissions by 2 per cent through VC investments - either by removing emissions from the atmosphere or preventing them from being emitted in the first place, Climate VC stands to exert a gigatonne scale impact.”

Marta Krupinska, a member of Climate VC’s Impact Advisory Board and a Head of Google for Startups:

“Reducing global CO2 emissions by one gigatonne won’t reverse climate change on its own. But the impact of doing it with a portfolio of fledgling startups will be enormous. What Climate VC’s doing should incite and excite others to think similarly and move in the same direction.”

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