Venture Capital: VCs, Wake Up And Smell The ClimateTech Coffee

https://dailyalts.com/wp-content/uploads/2020/02/landscape-4820830_640-climatetech-chung.jpg

Andrew Chung, of 1955 Capital, says climate change is the perfect storm.

A huge market is shaping up around ClimateTech, a category of solutions that enable governments, companies, and individuals to combat climate change. There is a sudden shift in investors’ preference for sustainable and climate-friendly companies and products. The once uncared for and given-up-for-dead moniker, “CleanTech,” could become a $4.3 trillion market by 2030 in its new avatar as “ClimateTech.”

“Cleantech lagged because consumers and enterprises didn’t take climate change seriously enough for it to impact their spending,” says veteran venture capitalist Andrew Chung, who runs 1955 Capital. “Now that it is seen as an existential threat to the planet, there is more urgency about solving it by consumers, corporations, governments, and investors. It’s a perfect storm.”

ClimateTech – follow the money

ClimateTech solutions embrace cleaner fuel, eco-friendly agriculture, sustainable food products, and CO2 removal. These are just a few examples, but entrepreneurs are already jumping aboard this new bandwagon. Where entrepreneurs go, the money, and VCs, must eventually follow.

So ClimateTech is one more “-Tech,” alongside FinTech, AdTech, AgTech, and FoodTech. And there are a host of entities driving innovation in ClimateTech – both established companies and new startups.

Unsurprisingly, ClimateTech investing is the new kid on the portfolio block.

1955 Capital has a headstart

Andrew Chung and 1955 Capital have a headstart on ClimateTech investing. Besides, Chung’s background and experience straddle both advanced and developing economies.

Chung has had stints at Bain Capital, Lightspeed Ventures, and Khosla Ventures. With 1955 Capital, Chung is sitting on a war chest of capital commitments worth $200 million.

Chung has already swung deals that migrate advanced technologies from developed countries to manufacturers in China. China’s new-found stance against the ill effects of climate change could usher in a huge opportunity for ClimateTech investing. “When a company is told it won’t be able to grow unless it reduces its carbon footprint, a solution becomes a matter of survival,” Chung observes.

1955 has led early investments in nine companies so far, including sustainability companies like Sustainable Bioproducts, Gridtential, and Crop Enhancement.  View their portfolio here.

Related Story:  ESG: Institutional Investors Press Hedge Funds on ESG Investing

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”
Shape

Latest Alternative Investment News

Alternative Investments: Activists Will Get Busy Soon, Says Tim Melvin

As companies become more undervalued as the economy slows because of shutdown orders across the United States, I expect that the pace of activist activity to increase. We should see…

https://dailyalts.com/wp-content/uploads/2020/04/54e5d0424b54b10ff3d8997cc3213f771737c3e456597441702a7cd297_640.jpg
Private Equity: Active Triage Happening at KKR and Other Funds
April 2, 2020     News, Private Equity

KKR & Co (NYSE: KKR) has shelved a plan to sell Singapore-based Goodpack, a Singapore based shipping containers, and logistics services.  They had bids for the company that was said…

https://dailyalts.com/wp-content/uploads/2020/04/key-visual-kyash.jpg
FinTech: Kyash Closes $45M Series C Funding
April 2, 2020     FinTech, News

Kyash, a Japanese fintech startup aspiring to be a leading challenger bank, gained $45 million in a Series C funding. The round was co-led by Greenspring Associates and Goodwater Capital,…

https://dailyalts.com/wp-content/uploads/2020/04/dollar-1362244_640-mmfs.jpg
Liquid Alternatives: Investors Shovelled $677B Into Money Market Funds In Scramble to Safety
April 2, 2020     Liquid Alternatives, News

Investors set up a record-breaking first quarter this year for inflows into U.S. money market funds. These funds gained from the massive risk-off sentiment that prevailed as investors realized the…

Scroll to Top