investible Launches $100M AUD Climate Tech Fund

Investible Launches $100 Million AUD Climate Tech Fund

Investible, a Sydney-based venture capital firm with a successful track record – including investments in Canva and other prominent Australian startups – has announced the launch of a new $100 million AUD (approximately $72.3 million USD) fund dedicated to Climate Tech. This marks the firm’s inaugural sector-specific investment vehicle.

Previously, Investible’s investment strategy was sector-agnostic, as demonstrated by its earlier funds, including a $50 million AUD fund finalized earlier this year.

Greenhouse: A Hub for Climate Tech Innovation

In addition to the fund, Investible revealed plans last month to establish Greenhouse, a growth and innovation center specifically for climate tech startups. This initiative is a collaboration with the City of Sydney.

Scheduled to open next year, Greenhouse will serve as a collaborative ecosystem, uniting startups, researchers, academic institutions, and corporations – encompassing even climate tech companies not currently within Investible’s investment portfolio.

Supporting Climate Tech Growth

“The core objective is to facilitate the progression of these companies from the startup phase to scalable operations,” explained Tom Kline, a leading figure within the Climate Tech Fund. “This involves supplementary research to refine their technologies, engaging with corporations to ascertain their specific requirements, and ultimately, identifying their future customer base.”

Fund Investment Strategy

The fund’s investment approach will concentrate on seed-stage funding rounds, while allocating 50% of its capital for subsequent follow-on investments.

While primarily focused on backing companies based in Australia, the fund intends to dedicate up to 30% of its resources to international ventures.

Investments will be directed towards six key sectors identified by the United Nations Environment Programme as crucial for mitigating climate change and global warming:

• Energy
• Transport
• Industry
• Buildings and Cities
• Food and Agriculture
• Forests and Land Use

Leadership and Expertise

The fund will be spearheaded by Tom Kline, formerly the chief executive officer of renewable energy manager New Energy Solar, and Patrick Sieb, an investor in technology companies since 2014, with a dedicated focus on climate tech startups since 2019.

Shift Towards Climate-Focused Investment

Kline articulated the firm’s rationale for launching a climate-focused fund, stating, “Each year, we’ve observed an increasing need to dedicate more resources to this area.”

He further noted that Investible reviews between 1,500 and 2,000 potential deals annually, with a growing proportion centered around climate-related technologies.

Growing Awareness and Demand

Kline emphasized the rising awareness surrounding climate change, which is influencing consumer behavior and prompting greater corporate transparency.

Furthermore, he highlighted the increasing number of governmental targets that necessitate substantial technological advancements and capital investment.

Investment Amounts and Criteria

Investible’s climate fund will typically participate in seed rounds beginning at approximately $1.5 million AUD, contributing up to 30%, or around $500,000 AUD.

Subsequent follow-on investments could reach several million dollars.

The fund will employ the same investment evaluation process as Investible’s sector-agnostic funds, but with a specific emphasis on climate-related metrics.

These criteria include assessing potential emissions reductions, evaluating the strength of the founding team, determining the market opportunity size, and estimating the timeline for technology development and monetization.

The Urgency of Climate Action

“For decades, scientists have been raising concerns about climate change, and there has been considerable discussion,” Kline concluded. “However, we are now reaching a point where the debate is settled, and there is widespread recognition that this is a human-induced problem requiring immediate action this decade.”