Are you an aspiring entrepreneur or a startup founder eager to create a positive impact in the battle against climate change? If so, now is the ideal time to dive in, given climate change is an urgent global concern.
However, fortunately, you are not alone in this journey, there are multiple venture capital firms that are increasingly focusing their investments on climate tech startups. They understand the importance as well as the potential for substantial returns in this growing green economy.
We understand that with so many options in hand, finding the perfect fit for your startup can be overwhelming. So, to make things simpler, we have listed 7 prominent climate-focused VC firms that you can consider.
Breakthrough Energy Ventures
Breakthrough Energy Ventures (BEV) is an investment fund that was founded by Bill Gates in 2015. It aims to inspire the world to develop and scale the critical solutions that are needed to reach net-zero emissions, to ensure everyone can enjoy affordable, abundant clean energy. With an ambitious goal of reducing global greenhouse gas emissions from 51 billion tons a year, where they are now, to net zero by 2050.
To combat climate change, they support cutting-edge research and development, invest in companies that turn green ideas into clean products, and advocate for policies that speed innovation from lab to market. All this has been made possible through investment vehicles, philanthropic programs, policy and advocacy efforts, and other initiatives.
Location:
Paris, France
Prominent portfolio companies:
Viridos, Stratus Materials, Unearthly Materials
World Fund
World Fund is a new European-focused climate venture capital fund established by Daria Saharova, Danijel Višević, Craig Douglas, Christian Kroll, and Tim Schumacher. It aims to help decarbonise the global economy by investing only in technologies with scalable businesses and significant emissions savings potential.
They support startups from early to growth stages, focusing on Energy, Food and Agriculture, Manufacturing, Buildings, and Mobility. They believe in backing entrepreneurs who view decarbonisation as a value driver, think big, act macro; and build tech for a regenerative world.
The companies that receive their backing go through an evaluation of their Climate Performance Potential (CPP) using an in-house, science-based methodology developed in collaboration with TU Berlin, Project Drawdown, and Project Frame.
Location:
Berlin, Germany
Prominent portfolio companies:
Treecard, FreshFlow, Planet Foods
SOSV
SOSV (formerly known as SOS Ventures) is a global venture capital and investment firm that was founded by Managing General Partner Sean O’Sullivan in 1995. It focuses on a wide range of technology categories, including climate tech and deep tech. SOSV is known for its accelerator programs and early-stage investments in startups, that aim to improve human and planetary health.
As of April 2023, SOSV’s top 100 climate tech companies had a valuation of $11.69 billion with $3.77 billion raised and is consistently ranked by Pitchbook as a top investor in this category. Additionally, 13 SOSV founders were featured in the Forbes “30 under 30 list 2022.”
Location:
Princeton, New Jersey
Prominent portfolio companies:
Novoloop, Upside Foods, NotCo
Khosla Ventures
Khosla Ventures is a prominent venture capital firm known for its investments in a wide range of technology sectors, including climate tech and sustainability-focused companies. The firm was started in 2004 by Vinod Khosla, co-founder of Sun Microsystems, to provide venture assistance to entrepreneurs. It aims to back bold, early, and impactful ideas that many consider impossible.
They support companies beyond just funding and commit to ensuring success with constant support. No wonder the founders of portfolio companies often praise the firm for the trust they showed in their company when there were more naysayers than supporters.
Location:
Silicon Valley (Menlo Park, California)
Prominent Portfolio Companies:
Mainspring, IMPOSSIBLE
Clean Energy Ventures
Clean Energy Ventures, is a venture capital firm that specialises in supporting climate tech startups working towards combating global climate change. It was founded by Dan Goldman, David S. Miller, and Temple Fennell in 2017.
Having started and run multiple companies themselves, they understand what it is like to be a climate tech entrepreneur. They aim to beat climate change by funding disruptive, capital-light technologies and business model innovations that can reshape how energy is produced and consumed and has the potential to substantially reduce greenhouse gas emissions by 2050.
The firm’s commitment goes beyond funding, providing hands-on guidance through dedicated leadership coaching, strategic marketing, IP development, and active board participation. Clean Energy Ventures undoubtedly reflects its core of innovation in the pursuit of a vibrant and environment-friendly future.
Location:
Boston, Massachusetts
Prominent portfolio companies:
Sparkmeter, Boston Materials, ClearFlame
Norrsken VC
Norrsken VC is one of Europe’s leading and largest impact-focused early-stage VC funds. It’s born out of Norrsken Foundation – a non-profit foundation founded in 2016 by Niklas Adalberth, co-founder of Klarna, with the aim to invest in startups that are solving the world’s greatest challenges while building massive businesses.
It is an Article 9 or “Dark Green” fund, which means they are a pure impact fund, only making sustainable investments. The companies that are funded by this firm work on electrifying transport, cutting food waste, creating electric airplanes, perfecting vegan cheese, digitalising fashion supply chains, and empowering small farmers.
Location:
Stockholm, Sweden
Prominent portfolio companies:
Karma, Winningtemp
Octopus Ventures
Octopus Ventures, part of Octopus Investments, is one of the largest and most active venture capital investors in Europe. It was founded in 2007, with the aim to help startup founders make a difference while they focus on building a thriving business.
The mission is simple – to invest in the people, ideas, and industries that will change the world. They invest in industries like B2B software, biotech, and fintech. They believe in supporting entrepreneurs beyond funding from the earliest stages all the way to Series A.
Location:
United Kingdom (London)
Prominent portfolio companies:
Olio, WeFarm, Origami Energy
Bottomline
With the increasing challenges of climate change, the number of climate tech startups is surging. To support these innovative climate tech startups there are many VC firms coming to the forefront. These 10 VCs with their financial backing and expertise are helping to drive the green revolution forward and making the planet a better place for future generations.
