Virescent Ventures secures $100 million in first close of new climate tech fund backed by Westpac and CEFC
Virescent Ventures, Australia's leading venture capital firm dedicated to climate technology, has successfully closed the first round of its second investment fund (Fund II), securing $100 million from key backers, including Westpac and the Clean Energy Finance Corporation (CEFC).
Virescent Ventures' Fund II aims to inject $200 million into climate technologies, building on the success of its first fund, which deployed over $270 million across 34 climate tech investments in Australia.
The new fund's focus will be on accelerating innovations that are critical for the global transition to a low-emissions economy. Fund II will target key sectors such as clean energy, electrification, transport decarbonisation, sustainable agriculture, smarter cities, and the circular economy. By supporting emerging climate tech companies, Virescent Ventures is aiming to capitalise on Australia’s potential to be a leader in the net-zero transition.
Managing Partner of Virescent Ventures, Kristin Vaughan, said: “The transition to a sustainable, lower-emissions global economy presents unprecedented opportunities for innovation and investment across all areas of the economy. Australia is uniquely placed to accelerate this transition and capitalise on these opportunities by being a world leader in climate technology.”
Australia's abundance of natural and renewable resources, combined with its deregulated energy markets and world-class research institutions, has positioned the country well for growth in the climate tech sector. Public and private institutions alike are recognising this opportunity, as evidenced by the support for Virescent's Fund II.
“Securing the support of over 50 investors reflects the confidence public and private investors have in Virescent’s approach and track record, the opportunities of the net zero economy, and the potential for Australia to be a world leader in climate technology,” said Ben Gust, another Managing Partner at Virescent Ventures.
This new climate tech fund comes after the success of Virescent Ventures’ first portfolio, which was managed on behalf of the CEFC. The first fund has already supported some of Australia’s most promising climate tech companies, such as Hysata, JET Charge, and Loam. Hysata, for example, is developing what it calls the world’s most efficient hydrogen electrolyser. JET Charge has made strides in electric vehicle (EV) charging infrastructure, and Loam has pioneered technology to help farmers capture and store carbon in agricultural soil.
Paul Barrett, CEO of Hysata, remarked on the valuable role Virescent has played in their growth: “From our Series A round, which they led, to their significant contribution in our record-breaking Series B round, we have been lucky to partner with them on our journey to commercialise the world’s most efficient hydrogen electrolyser.”
Virescent Ventures' expertise lies not only in capital investment but also in providing strategic guidance and support for scaling climate tech companies. By partnering with both public institutions and private entities, the firm has been able to foster the growth of key technologies that could play a crucial role in achieving net-zero emissions.
Westpac's involvement brings further weight to the fund. Peter Herbert, Chief Operating Officer of Business & Wealth at Westpac, said: “This strategic relationship will enable us to partner with leading specialists in fast moving and highly specialised sectors. Through this investment, we’ll also have the opportunity to identify emerging climate leaders and potentially work with them to provide leading solutions for our customers.”
The CEFC also continues to play a pivotal role, having created Virescent Ventures in 2022 to focus specifically on climate technology investments. Ian Learmonth, CEO of the CEFC, reaffirmed their commitment to the sector: “We are proud to be a cornerstone investor in the Virescent Ventures capital raise and excited to see the development of technology that can accelerate Australia’s path to net zero.”
With an increased global demand for breakthrough climate technologies, Virescent Ventures is already assessing potential investments from Fund II. Additional fundraising closes are expected in the near future, with initial investments to be announced soon.
