Venture capital fund for climate innovation announces its initial eight investments
CAMBRIDGE, Mass.: Climate change is an existential threat that can’t be addressed without innovation. The U.N.’s Intergovernmental Panel on Climate Change estimates that the world must cut greenhouse gas emissions by more than 70 gigatons of CO2-equivalent per year to avoid a two-degree Celsius temperature rise – a reduction that’s unlikely to be met without new technologies. Today Prime Impact Fund, an early-stage venture capital fund focused on breakthrough climate technologies, announced its final close with approximately $50 million in capital raised.
Family offices, corporations, and foundations such as the Sierra Club Foundation and the David and Lucile Packard Foundation have backed Prime Impact Fund to support high-risk, high-reward climate ventures. Additionally, the John D. and Catherine T. MacArthur Foundation has chosen the Fund to be among a select group of major investments that advance the global Catalytic Capital Consortium initiative.
“The tide is turning in the climate fight. Last month renewables overtook coal in the U.S. for the first time,” said Matthew Nordan, Managing Director of Prime Impact Fund. “To win we need fresh innovation in fields like carbon capture, sustainable agriculture, process heat, and zero-emission aviation. Companies launched in these fields today can become pillars of the low-carbon economy.”
It is companies of this kind that Prime Impact Fund was purpose-built to support. Since operationalizing in October 2018, the Fund has made investments in eight climate tech start-ups:
- Lilac Solutions, transforming lithium extraction;
- Via Separations, replacing heat in industrial processes with electricity;
- C-Motive Technologies, reinventing the electric motor;
- MicroByre, building a synthetic biology platform to domesticate bacteria;
- Verdox, developing technology to capture carbon from air;
- Treau, creating better and more sustainable air conditioning;
- Sublime Systems, decarbonizing cement production; and
- Clean Crop Technologies, protecting crops to reduce food waste.
“Every company we invest in has the potential for gigaton-scale climate impact. Turning that potential into reality means going from concept to scale, retiring risk every step of the way,” said Dr. Johanna Wolfson, Principal at Prime Impact Fund. “By drawing on catalytic capital from impact-focused investors, Prime Impact Fund partners with entrepreneurs at the earliest stages of this journey. We work side-by-side with our portfolio company CEOs to hone strategy, grow strong teams, and build investor syndicates for the long haul.”
Prime Impact Fund is an initiative of Prime Coalition, a 501(c)(3) nonprofit addressing critical funding gaps for climate solutions. Prior to the Fund, Prime Coalition developed its unique investment approach through syndication, mobilizing $24 million to fund 10 climate tech start-ups with large-scale impact potential. Prime Impact Fund builds on this earlier work.
“Climate change impacts so many aspects of life – our health, what we eat, how we learn, who leaves their homes – and it disproportionately affects low-income communities and people of color,” said Prime Impact Fund Principal Amy Duffuor. “We’re fortunate to have long-term oriented investors backing Prime Impact Fund who understand the intersectional nature of the problem and are committed to supporting transformative climate solutions.”
About Prime Impact Fund:
Prime Impact Fund invests in transformative technology companies with the potential for gigaton-scale climate impact. Drawing on catalytic capital with a long-term lens, the fund is purpose-built to support high-risk, high-reward ventures at the earliest stages. Learn more at primeimpactfund.com.
Source: Prime Impact Fund
