One Ventures Launches New Fund for Climate Tech Startups

At One Ventures Closes $150 Million Fund I for Planet-Positive Startups

At One Ventures, a venture capital firm focused on environmental sustainability, has successfully finalized its Fund I with a total of $150 million in committed capital.

This fund will be strategically allocated to early-stage companies pioneering innovations in technical hardware, with a specific emphasis on technologies that deliver positive environmental impact.

Founding and Expertise

The Bay Area-based firm was established in 2019 by a team bringing diverse expertise to the table. This includes Tom Chi, a co-founder of GoogleX, Laurie Menoud, formerly a venture capital leader at North American BASF, and Helen Lin, who has experience delivering financial services to underserved communities in Africa.

Chi emphasized that this unique blend of scientific, financial, and deep-tech backgrounds provides a distinct advantage in evaluating both the technical feasibility of hardware solutions and their overall environmental economics.

The firm aims to identify companies genuinely contributing to a net positive impact on the environment.

A Personal Catalyst for Change

Chi’s commitment to environmental restoration stems from a personal experience witnessing the rapid degradation of a coral reef in Hawaii.

He observed a vibrant, colorful reef transform into a grey and lifeless landscape within a short timeframe.

This experience motivated him to leave his previous position and embark on a global exploration of environmentally damaging practices and associated social issues, ultimately leading to the creation of At One Ventures.

Beyond Emission Reduction: A Focus on Restoration

Chi posits that simply reducing carbon emissions may not be sufficient to prevent global warming from exceeding 1.5 degrees Celsius above pre-industrial levels by 2040.

He believes a more comprehensive approach is required, one that extends beyond emission control to actively repair existing damage and address underlying problems.

Investment Thesis: Unit Economics and Scalability

At One Ventures’ investment strategy goes beyond traditional considerations of founder quality, product viability, and company structure.

The firm delves into the intricacies of a company’s unit economics to assess its long-term sustainability.

While many startups strive for planet-positive outcomes, their business models often rely on consumers paying a premium for marginally improved environmental benefits.

Instead, At One Ventures prioritizes companies capable of scaling solutions that offer significant environmental improvements at a lower cost – for example, a product that is 50% better for the environment while costing three times less.

Future Growth and Portfolio

The firm is already planning for its next fund, aiming to raise $300 million. Progress towards this goal is reportedly well underway.

To date, At One Ventures has invested in 21 companies out of a planned 30 for its initial fund.

The long-term vision involves investing in a total of 100 companies over the next decade.

The team rigorously evaluated over 2,600 potential deals to identify the current portfolio companies, which include Iron Ox (robotic indoor farming), Cruz Foam (earth digestible foam packaging), and Alchemie Technology (zero water textile dyeing).

A Sense of Urgency

Chi underscored the critical need for efficient investment decisions, stating, “We don’t have the time to invest poorly, we only have a decade to get this right.”

He acknowledged that even successful investments will represent a small fraction of the total capital allocated to climate technology, emphasizing the importance of maximizing the impact of every dollar and every moment.