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The Australian climate-technology sector is poised for a $100 million shot in the arm after the first close of Virescent Ventures’ latest investment fund which has been backed by Westpac Banking Corporation (ASX: WBC) and the government-owned Clean Energy Finance Corporation (CEFC).
The latest capital raise follows the success of Virescent Ventures’ first climate-tech fund which has since deployed $270 million across 34 Australian climate-tech investments.
Virescent Ventures says the second fund is expected to eventually cap off at $200 million on a mission to prioritise investments in innovative technologies and solutions critical for the global transition to net zero.
“The transition to a sustainable, lower-emissions global economy presents unprecedented opportunities for innovation and investment across all areas of the economy,” says Kristin Vaughan, managing partner of Virescent Ventures.
“Australia is uniquely placed to accelerate this transition and capitalise on these opportunities by being a world leader in climate technology.”
Virescent Ventures describes Australia’s role in the transition to net zero as a “generational opportunity” that is supported by an abundance of renewable resources, deregulated markets and continued government support for advancing clean technologies and industries.
“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,” says Ben Gust, managing partner of Virescent Ventures
“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.”
Westpac’s chief operating officer of business and wealth, Peter Herbert, sees the investment as an opportunity 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,” says Herbert.
Virescent Ventures, which was born from the CEFC’s Innovation Fund in 2022, manages an extensive portfolio of companies that are “supercharging the climate-tech ecosystem”.
Among them is Hysata, a leading global hydrogen electrolyser manufacturer, which recently closed the largest Series B round of US$111 million ($164 million) for a climate-tech startup in Australian history.
Virescent Ventures also has investments in JET Charge, Australasia’s largest EV charging infrastructure company, 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.
“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,” says Ian Learmonth, CEO of the CEFC.
“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.”
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