CEFC, Westpac back first close of new Virescent Ventures climate tech fund

The CEFC congratulates Virescent Ventures on the $100 million first close of its new climate technology fund (Fund II) as it continues to attract more private sector investors to the space and boost Australian climate tech. The CEFC, which is a cornerstone investor in Fund II, is also a foundation stakeholder in Virescent Ventures, which was spun out of the CEFC in 2022. Virescent Ventures manages a portfolio of CEFC investments in specialist early-stage climate tech on our behalf.

Virescent Ventures media release:

Virescent Ventures announces $100 million first close of new climate technology fund backed by Westpac and the CEFC

8 October 2024

Australia’s largest and most active dedicated climate tech VC, Virescent Ventures has completed a $100 million first close of its second climate technology investment fund (Fund II). Some of Australia’s leading public and private institutions are investors in the new fund, including cornerstone investors Westpac and the Clean Energy Finance Corporation (CEFC).

The new fund aims to deploy $200 million into climate technologies and follows the success of Virescent Ventures’ first portfolio, managed on behalf of the CEFC, which has seen more than $270 million deployed across 34 world-leading Australian climate tech investments.

Kristin Vaughan, Managing Partner of Virescent Ventures, 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 has abundant natural and renewable resources, deregulated energy markets, world-class universities and researchers, and government support for advancing clean technologies and industries. This is a generational opportunity for innovation, growth and impact, and we are excited to reach first close of Fund II.”

Ben Gust, Managing Partner of Virescent Ventures, said: “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.”

“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 companies.”

The new fund 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.

Peter Herbert, Chief Operating Officer, Business & Wealth at Westpac, said: “We want to support companies to develop innovative climate tech solutions to reduce carbon and assist in the transition to net zero. 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 identify emerging climate leaders and potentially work with them to provide leading solutions for our customers.”

Virescent Ventures is a value-adding investor with a track record of helping climate tech companies grow, scale, and deliver impact. Born of the CEFC’s Innovation Fund in 2022, whose portfolio it manages on behalf of the CEFC, investees include: Hysata, the world’s leading hydrogen electrolyser manufacturer, which recently closed the largest Series B round (US$111 million) for a climate tech startup in Australian history; JET Charge, Australasia’s largest EV charging infrastructure company, which has partnered to establish Australia’s first electric truck recharging depot; and Loam, an agribusiness pioneer that completed a $105 million Series B funding round and has developed a world-first biological seed treatment enabling farmers to capture, store, and monetise carbon in soil.

Ian Learmonth, CEO of the CEFC, said: “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. The strength of the other investors who are participating in this raise reflects the outstanding track record of the Virescent Ventures team and their experience in climate tech investing.”

“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. In this critical decade to decarbonise, Australia must continue to back our homegrown climate tech pioneers and their groundbreaking solutions.”

Other world-leading climate tech companies Virescent Ventures has supported include Sunman, a pioneer of ultra-lightweight solar panels; MicroTau, an innovator in aircraft drag reduction technology; Relectrify, a cutting-edge company achieving breakthroughs in battery energy storage; and Novalith, which is advancing a revolutionary process for extracting battery-grade lithium faster, cheaper and cleaner than existing methods.

Following the first close of Fund II, Virescent Ventures is accelerating their assessment of investment opportunities amid intensifying global demand for breakthrough climate solutions, with an update on initial investments and further fund closes to come in the near future.

Image from left: Blair Pritchard (Partner, Virescent Ventures), Peter Herbert (Chief Operating Officer, Business and Wealth, Westpac), Michael Chen (Chief Sustainability Officer, Westpac) Ian Learmonth (CEO, Clean Energy Finance Corporation), Kristin Vaughan (Managing Partner, Virescent Ventures), Ben Gust (Managing Partner, Virescent Ventures)