)
With 29 companies already backed to date by its $32 million climate tech fund, Sydney-headquartered fund Investible will ramp up its exposure to the sector by leading a new technology commercialisation venture scheme for university spin-offs.
The Trailblazer for Recycling and Clean Energy (TRaCE) at UNSW has selected Investible to lead the program that targets seed and Series A investments via an early-stage co-investment partnership, which Hampton Capital has also joined.
TRaCE also includes the University of Newcastle and is backed by the Federal Government's Australian Trailblazer Universities Program, with numerous industry partners, sub-programs and initiatives.
In the case of the latest technology commercialisation venture scheme, UNSW is in charge of the seed fund with TRaCE allocating an initial $1.7 million to invest.
What makes this venture scheme unique is its buyback mechanism modelled after similar programs used in Israel and Singapore, aimed at de-risking TRaCE while giving it the ability to recycle funds and seed more startups.
When asked whether the buy-backs are mandatory and how much optionality is in place, a spokesperson for Investible says each deal will be unique in terms of its dynamics.
"The terms of the partnership provide us both with the flexibility to collaborate on each individual investment to ensure alignment with our respective interests," the spokesperson explains.
The collaboration with VC Partners aims to address the multiple "valleys of death" faced by climate tech startups, where high costs and unproven market traction deter private investment. By de-risking startups, TRaCE and Investible aim to attract more investor interest at this earlier crucial stage, helping them scale and reach market readiness.
"This partnership sets a new standard for TRaCE. TRaCE’s research and R&D capabilities, combined with Investible’s expertise and ASEAN market connections, create a unique pathway for our startups,” says Gabriella Nunes, research & commercialisation director at TRaCE.
"Through this co-investment scheme, our goal is to provide more funding to high-potential technologies, attract VCs in earlier, and build a sustainable cycle of capital for the university to re-invest into a greater number of startups."
The partnership’s first co-investment between TRaCE and Investible, announced in August, was with DeCarice, a hydrogen diesel hybrid technology startup.
Initially financed through TRaCE’s R&D Project fund, DeCarice spun out through the TRaCE Climate 10x Accelerator, paving the way for Investible’s pre-seed investment. Additionally, TRaCE has facilitated the funding of Industry PhDs, enabling a commercially focused researcher to be seconded to DeCarice, further enhancing its innovative capacity.
DeCarice CEO Goran Bozic explains the full ecosystem has been essential in the company's journey from lab to market, providing "not only capital but also the critical support needed to attract VC funding and drive our growth".
Investible CEO Charlie Ill brings experience from similar co-investment models overseas and is optimistic about their potential in Australia.
"TRaCE’s open-mindedness to new models and willingness to co-create this solution with Investible is a tremendous start," Ill says.
"This partnership amplifies our investment capabilities and enhances the pathways for university spin-offs to access vital resources and markets."
Companies Investible has invested in via its climate tech fund include prop-tech CIM, sustainable lithium extraction technology Novalith, insect protein scale-up Goterra, electric motor developer Kite Magnetics, biodiversity management platform Xylo Systems, bio-based coating solution developer Earthodic, and many more.
)
