G2 Venture Partners Secures $500M for Sustainable Tech Investments

G2 Venture Partners Secures $500 Million for Industrial Innovation

G2 Venture Partners, originating as a spin-off from Kleiner Perkins Caufield & Byers, has successfully raised $500 million. This capital will be dedicated to supporting entrepreneurs focused on enhancing the efficiency, environmental sustainability, and social responsibility of established industries.

Investment Focus Areas

With its second fund, G2 demonstrates strong optimism regarding technologies within the transportation, logistics, manufacturing, agriculture, and energy sectors. A growing emphasis is being placed on sustainability initiatives, as confirmed by a firm representative.

“The launch of Fund II significantly broadens our capacity to collaborate with businesses actively reshaping and revolutionizing their respective fields,” stated G2VP founding partner David Mount. “We remain committed to partnering with technology companies that are propelling the future of industry, fostering economic expansion while minimizing resource consumption.”

Key Investors in Fund II

The new fund attracted investments from prominent entities including Shell Ventures, Mitsui & Co., Daimler AG, ABB Switzerland Ltd., and The McKnight Foundation, according to a G2 spokesperson who spoke with TechCrunch. Notably, John Doerr, a well-known investor and venture capitalist at Kleiner, also made a personal investment in the fund.

Doerr had previously invested in G2VP’s inaugural $350 million fund in 2018. He is also recognized for delivering a compelling TED Talk advocating for increased investment in clean energy technologies.

A Legacy of Sustainability Investment

The team’s dedication to sustainability and cleantech traces back to their time at Kleiner Perkins. During their tenure there, they spearheaded investment rounds in OSIsoft, an industrial data management platform later acquired by AVEVA, and Enphase, a solar energy company.

In 2017, Doerr provided additional support to Enphase with a $10 million investment alongside T.J. Rodgers.

Fund II Investment Strategy

While G2 has not yet disclosed the names of companies within its newest fund’s portfolio, a spokesperson confirmed that Fund II will be allocated to a new cohort of businesses. Any subsequent investments in companies from Fund I will be sourced from that existing fund.

The firm invested in 15 companies in the late stages of development with Fund I and anticipates a similar investment pace with Fund II. G2 typically allocates between $10 million and $50 million per company.

Previous portfolio companies encompass lidar manufacturer Luminar, EV technology firm Proterra, computer vision solutions provider Scandit, autonomous robotics company Seegrid, and agricultural supply chain platform ProducePay, among others.

Industry Recognition

“This team has consistently demonstrated foresight and proactive measures, staying ahead of the curve in the ongoing digital industrial transformation,” commented Robert Linck, chief investment officer of Shell Ventures, a limited partner in both G2’s first and second funds. “The expertise within this firm will be a valuable asset to the emerging generation of technology leaders and innovators.”