Virescent Ventures Fund II injects new climate tech capital
Supporting companies developing innovative decarbonisation solutions
The CEFC and Westpac are cornerstone investors in Virescent Ventures second climate tech fund (Fund II) which has completed a $100 million first close.
$100 million
first close
Cornerstone
investment
Innovative
net zero solutions
In this critical decade to decarbonise, Australia must continue to back our homegrown climate tech pioneers and their groundbreaking solutions.Ian LearmonthCEO, CEFC
Our investment
The CEFC and Westpac are major cornerstone investors in the second climate technology investment fund managed by Virescent Ventures.
Virescent Ventures, a specialist fund manager created by the CEFC in 2022, is co-owned by the CEFC and its founders, who are former CEFC senior executives.
The $100 million first close of Fund II has attracted the support of more than 50 investors. The CEFC commitment to Fund II is for up to one third of the total. The new fund aims to deploy $200 million into climate technologies with more investors expected to come on board.
Fund II will prioritise strategic investments in innovative technologies and solutions critical for the global transition to net zero.
This includes advancing the clean energy transition, electrifying the economy and improving grid management, decarbonising transport and developing smarter cities, building more sustainable food and agricultural systems, and fostering a circular economy.
We are thrilled to have the backing of Australia’s oldest bank, Westpac and our long-term partner, the CEFC. Their involvement means Fund II combines the CEFC’s deep decarbonisation capability, experience and connectivity, with Westpac’s leading market insights and financial expertise, to help supercharge the growth of emerging climate tech companiesBen GustManaging Partner, Virescent Ventures
OUR IMPACT
Backing Australia’s climate tech pioneers
As Australia’s growing climate tech sector matures, we are seeing the development of innovative products and models that have the potential to accelerate our transition to net zero emissions.
The CEFC began investing in climate tech through the Clean Energy Innovation Fund in 2016.
As Australia’s largest specialist climate tech investor, the CEFC created Virescent Ventures to continue leading the market in developing a thriving climate tech eco system.
Virescent Ventures oversees Clean Energy Innovation Fund investments on our behalf, managing more than $270 million in CEFC capital across 34 climate tech businesses, funds and investors.
Capital needed for further impact
The 2024 Australian Climate Tech Industry Report, produced by industry network Climate Salad, says there is strength and momentum in Australia’s fast scaling climate tech industry. It also reports that market conditions continue to make raising capital challenging, but 80 per cent of companies it surveyed are aiming to raise capital in the next 12 months.
The report says with the right mix of capital injected now, Australian tech has the potential to create lasting domestic and international impact.
