Ted Turner's $300M Climate Tech Fund: Bridging the 'Valley of Death'

The Challenge of Scaling Climate Tech Startups

Many emerging companies encounter a significant hurdle between initial funding and the capital required for widespread commercialization. This is often referred to as the “valley of death.”

For climate tech startups, this challenge is frequently amplified. Due to the nature of addressing physical problems, these ventures often necessitate hardware-based solutions, which demand substantial investment.

Introducing the All Aboard Coalition

A newly established fund, the All Aboard Coalition, is aiming to address this “missing middle” in financing. Its goal is to secure $300 million by October to facilitate startups in obtaining the $100 million to $200 million needed for pioneering projects.

While the $300 million target may appear limited given the extensive capital requirements, the fund’s strength resides in its network of influential climate investors. This network is designed to demonstrate to larger investors the viability of these companies.

Leadership and Participating Firms

The initiative is spearheaded by Chris Anderson, well-known for his role as curator and former head of TED Talks. Anderson intends to leverage his expertise in network development to overcome investment gaps within the climate technology landscape.

The coalition includes a diverse group of venture capital firms, such as:

• Ara Partners
• Breakthrough Energy Ventures
• Clean Energy Ventures
• Congruent Ventures
• DCVC
• Energy Impact Partners
• Future Ventures
• Galvanize Climate Solutions
• Gigascale Capital
• Khosla Ventures
• NGP Energy Capital Management
• Obvious Ventures
• Prelude Ventures
• S2G
• Spring Lane Capital

Fund Structure and Investment Strategy

All Aboard will provide funding through equity or convertible equity investments. It will not offer loans or directly finance specific projects, positioning it as a venture capital fund rather than a project finance entity.

Participation in the fund does not require firms to invest, although some partners from the listed firms are contributing capital.

A Signal to the Investment Community

The fund aspires to function as a prominent indicator within the sector, similar to the influence of Sequoia Capital. An investment from All Aboard is intended to encourage other established funds to also invest in the same companies.

The Broader Funding Landscape

Successfully navigating the “valley of death” will require climate tech startups to secure funding exceeding $300 million – and likely significantly more than the $60 billion currently managed by All Aboard’s members.

Attracting investment from generalist investors will be critical for the success of All Aboard and the wider climate tech sector, ultimately enabling commercial viability.