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After deploying $270 million across 37 Australian investments from its first climate technology fund, Virescent Ventures has raised $125 million for its planned second fund after securing support from Queensland Investment Corporation (QIC) as a major investor.
Virescent ’s Fund II is ultimately aiming to invest $200 million into innovative climate tech companies following the success of the first portfolio, which is managed on behalf of the Clean Energy Finance Corporation (CEFC).
Both the CEFC and Westpac Banking Corporation (ASX: WBC) are cornerstone investors in both of Virescent Ventures’ climate-tech funds.
“Partnering with Virescent represents an opportunity for QIC to work with an Australian-based climate manager to meaningfully advance the global transition to net zero,” says Lottie Bryon, investment director at QIC.
“Their CEFC heritage affords Virescent deep expertise and touch points into the clean energy sector, producing a unique origination model that delivers attractive investment opportunities.
“Acknowledging the significant investment required to reach net zero, providing early-stage companies with growth capital to realise opportunities in this enduring secular trend sits at the core of QIC’s climate mandate strategy.”
Virescent Ventures sees 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.
“We’re thrilled to have the backing of QIC as we complete our first, soon to be announced, investment from our second climate technology fund,” says Kristin Vaughan, managing partner of Virescent Ventures.
“QIC brings a global presence, cross sector expertise and deep financial market insights to Fund II, which will be invaluable as we invest in market-leading climate tech start-ups.
“The calibre of investors backing Fund II shows the confidence major public and private investors have in Virescent and our track record, and the opportunities in Australian climate tech.”
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.
“Global demand from both the public and private sector for new technologies that reduce emissions, improve efficiency and lower costs, will continue to grow,” says Ben Gust, managing partner of Virescent Ventures.
“We’re excited QIC has joined our cornerstones Westpac, the CEFC and over 60 other investors in backing our second climate fund. The global consensus on decarbonisation is clear.
“The world needs new technology that delivers sustainable growth, and it needs that technology deployed fast. As Australia’s most active climate tech investor, we are excited to be at the forefront of supporting the next wave of Australian climate tech innovators to grow and commercialise.”
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