Newly launched UK-based climate change investor, Climate VC, has unveiled a new fund to invest in climate-focused technology startups with the potential to collectively remove or replace 1 billion tonnes of CO2e over a decade. In year one, it intends to deploy £10 million of investments, eventually raising upwards of £35 million by 2025.
Raising funds from individual and institutional UK-based LPs, it will back 100-120 early-stage UK-based climate startups over three years. The investors aim to see at least 10 of these investments become full-scale successes, each removing 10 megatonnes of CO2e a year for a decade, cumulatively creating a gigatonne impact on the climate change mission by the mid-2030s.
The company has announced its first two investments as well. While Global OTEC uses the temperature difference between surface sea-water and deep water surrounding tropical islands to generate a continuous baseload of renewable energy, Tierra Foods is scaling ancient agroforestry techniques in central America to produce carbon-negative ingredients while protecting and rewilding existing forests.
Peet Denny, founding partner, Climate VC said: “We’re backing climate change innovators that might have been overlooked by other investors but whose cutting-edge ventures can be deployed effectively in markets with the greatest potential for impacting emissions. Some will reach impact quickly, some will need a more patient timeline, and though we may put impact first but we’re still investors seeking returns. Startups that most excite us are those for whom generating revenue means dramatically reducing carbon from being emitted in their sector.”