Envisioning Partners closes $64 million fund for climate tech startups – TechCrunch
Most companies today recognize the importance of global warming. As such, they are redefining their objectives with the aim of tackling the problem of climate change.
View Partnersa Seoul-based venture capital firm, secured its latest impact fund, the oversubscribed $64 million (KRW 76.8 billion) The Envisioning Climate Solutions (ECS) fund, to support startups fighting the climate crisis.
Hyunjoo Je, managing partner of Envisioning Partners, told TechCrunch that climate change has been one of the top areas of impact since Envisioning Partners was founded.
“We have decided to launch a fund 100% dedicated to climate solutions. Time is running out for us to solve the climate problem and we must act quickly [as we can] to help our society better prepare for the massive transitions ahead,” said Je.
The ECS fund is backed by South Korean companies committed to pursuing environmental, social and governance (ESG) and decarbonization goals and developing innovative climate solutions for a sustainable future, the company said. The venture capital firm has limited partners like Hanwha Solutions, GS Holdings, IS Dongseo, Yesco Holdings, Hankuk Carbon, Insun ENT, Yellowdog Corp and Korean fashion platform startup Musinsa.
I told TechCrunch Envisioning that they want to have more collaborative work with strategic companies that see the climate issue from a different perspective in terms of investments.
“The climate solution is more of a concept that encompasses the different areas needed to revamp existing business structures from a long-term perspective,” Je told TechCrunch. “Since the proportion of deep tech is high, it takes longer before it is applied to the market. When introduced, it will have a very great impact on society, if complete support is needed. We will broaden the scope of capital to support technology commercialization and business growth and increase the level of cooperation between investors and industry experts.
“We have seen strong growth in venture capital investments in climate technologies over the past five years in the United States and China. This trend has further accelerated over the past 12 months. The close relationships with our fund’s limited partnerships will provide a distinct advantage,” Je said in a statement.
Global venture capital and private equity firms invested $87.5 billion in the climate tech sector in the second half of 2020 and the first half of 2021, according to a PwC report. The report also mentions the top five technologies accounting for more than 80% of the emissions reduction: solar power, wind power, food waste technology, green hydrogen production and alternative foods/low-emitting proteins. of greenhouse gases.
Envisioning Partners, which now has $140 million in assets under management, is focused on investing in Series A and B Sleeves. The ticket size will start from approximately $1 million to $5 million. The venture capitalist expects its limited partners to participate as co-investors for follow-on investments.
Envisioning has been actively investing in climate technology startups over the past five years in the United States, Korea and overseas.
Portfolio companies include Novoloopa Californian plastic recycling technology start-up; circa Virginia-based mixed textile recycling tech startup; Green Li-iona Singapore-based cleantech start-up; Recce, a South Korean food waste technology platform; and Mission Barnsa California-based food technology company.
The venture capital firm is led by Hyunjoo Je and YongHyun Kim, managing partner of Envisioning and former CEO of Hanwha Asset Management.