Energy Revolution Ventures Launches $18M Fund for Chemistry Startups

Energy Revolution Ventures Launches $18 Million Fund for Deep Tech Innovation

The emergence of Energy Revolution Ventures (ERV) marks a significant development in the venture capital landscape. Founded by a chemical engineer with a background in hydrogen-powered drone development, ERV has successfully finalized an $18 million seed and Series A fund.

Focus on Emerging Technologies

This new fund is strategically allocated to investments in deep tech sectors. Key areas of interest include advanced energy storage solutions, innovative carbon capture technologies, and, notably, advancements in hydrogen technologies.

From Aerospace to Venture Capital

Marcus Clover, a co-founder and partner at ERV, shared his journey with TechCrunch. Initially intending to pursue a career in oil and gas after studying at Cambridge, his path shifted when he joined an aerospace startup as its first employee.

This startup was dedicated to the construction of a hydrogen-powered drone intended for use in telecommunications applications. Following five years with this venture, Clover transitioned to another firm focused on integrating hydrogen fuel cells into heavy-duty vehicles.

Recognizing the Potential for Investment

“Working directly within this technological space allowed me to observe the rapid pace of innovation occurring in the energy sector,” Clover explained. “This realization prompted me to transition into the investment side of the industry, leading to the collaboration with my two partners.”

Fund Composition and Existing Portfolio

The 2023 fund benefits from contributions from limited partners (LPs) including family offices operating in the metals and energy industries, individual high-net-worth investors, and Bidra Innovation Ventures – the corporate venture capital division of Morocco’s OCP Group.

ERV currently boasts a portfolio of nine companies. These include Green Li-ion, specializing in lithium-ion battery recycling; Anthro, focused on developing structural and safe batteries; and Oort Energy, pioneering low-cost renewable hydrogen (H₂).

Venture Builder and Laboratory Infrastructure

ERV operates not only as a fund but also as a venture builder, known as Prosemino. This dual approach enables the firm to invest in independent startups while simultaneously developing new ventures leveraging its internal technical expertise.

The firm maintains a robust network of advisors affiliated with the University of Oxford and University College London. Furthermore, ERV has established specialized laboratories to support its portfolio companies.

State-of-the-Art Laboratory Facilities

“We operate a 4,000 square foot facility in London equipped for both wet chemistry and dry lab work,” Clover stated. “We believe this is the only laboratory of its kind outside of Europe that isn’t directly associated with a university.”

The Future of Energy Innovation

ERV’s investment strategy is predicated on the belief that significant breakthroughs in chemistry, particularly within the energy sector, are on the horizon.

Lessons from Hydrogen Technology Development

“My experience working with hydrogen technology, even back in 2015/2016 – before the recent surge in interest – revealed that the most advanced technologies were originating in the space sector,” Clover noted. “We were attempting to adapt these technologies for aircraft applications.”

“This work instilled a deep understanding of how to redesign systems from fundamental principles and operate effectively within small teams with limited resources. This experience allows me to readily connect with many of the companies we’ve invested in.”

Beyond Decarbonization: The Electrification Opportunity

Clover emphasized that the firm’s investment thesis extends beyond mere decarbonization to encompass broader electrification efforts. “Electrification encompasses more than just power generation. Effective energy storage, transmission, and the electrification of diverse economic sectors are all crucial.”

“We are fundamentally reshaping the economy, and this requires substantial technological advancements. Just as software revolutionized space travel, I anticipate a similar transformation within the energy sector, and that’s what makes this field so compelling.”

Portfolio Company Highlights

TechCrunch has previously reported on two companies within ERV’s portfolio: Anthro Energy, which received partial seed funding of $7.2 million from ERV, and Divigas.

Electrification as a Key Growth Driver

Clover highlighted that the potential for growth through electrification is “even more significant from a market perspective” compared to focusing solely on decarbonization.

ERV Fund 1 Investments

To date, ERV Fund 1 has made investments in the following companies:

• Blixt – Developers of software-enabled power electronics, selected for NATO’s DIANA program.
• Ecolectro – Innovators of novel polymers for next-generation electrolyzers in the hydrogen industry.
• Immaterial – Creators of cost-effective and durable Metal-organic frameworks (MOFs) for carbon capture, gas separation, and purification.