Westpac joins $200m raise by climate VC Virescent Ventures
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The news: Venture capital firm Virescent Ventures has completed a $100 million first close of its second climate technology investment fund (Fund II), backed by cornerstone investors Westpac and government-owned green bank Clean Energy Finance Corporation (CEFC).
The numbers: The new fund aims to deploy $200 million into climate technologies and follows Virescent Ventures’ first portfolio, managed on behalf of the CEFC, which has seen more than $270 million deployed across 34 Australian climate tech investments.
The context: Virescent said 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.
Born of the CEFC’s Innovation Fund in 2022, whose portfolio it manages on behalf of the CEFC, Virescent Ventures investees include: hydrogen electrolyser manufacturer Hysata, EV charging infrastructure company JET Charge, and agribusiness Loam.
Virescent Ventures has also supported solar panels maker Sunman, battery energy storage company Relectrify and lithium production outfit Novalith.
Following the first close of Fund II, Virescent said it is accelerating its 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.
What they 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," said Virescent Ventures managing partner Ben Gust.
"We are thrilled to have the backing of Australia’s oldest bank, Westpac and our long-term partner, the CEFC," he said.
"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."
Peter Herbert, chief operating officer of business and wealth at Westpac, said: "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," Herbert said.
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."
"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," he said.
The source: Virescent Ventures media release
