Microsoft-Backed Fund Raises $200 Million for Climate Startups

Jan 19, 2022 09:00 PM ET
  • Energy Impact Partners is investing in battery storage space, nuclear fusion as well as industrials
Microsoft-Backed Fund Raises $200 Million for Climate Startups
Image: Chris Ratcliffe/Bloomberg

Energy Impact Partners LP, a venture capital company that counts Microsoft Corp. as well as Duke Energy Corp. as backers, has actually raised $200 million for a brand-new fund to transform enthusiastic climate technologies right into commercial operations.

The brand-new financial investment lorry-- called the Deep Decarbonization Frontier Fund-- has currently financed a few startups creating unique approaches to clean energy and production. That checklist consists of Kind Energy Inc., a battery business from a previous Tesla Inc. exec; Zap Energy Inc., an upstart dealing with nuclear fusion; and also others intending to produce fertilizer and concrete without giving off carbon.

These fields call for substantial amounts of ahead of time capital, with little guarantees of success, and startups working in them have actually traditionally battled to get financial backing. Energy Impact Partners (EIP) is planning to raise an added $150 million for the fund this year, Shayle Kann, the partner leading the fund, claimed in an interview.

The firm promotes a special model. It is financed by utility companies and also oil as well as gas firms, and also intends to couple those services with its portfolio companies, once they show practical items. For that reason, Kann claimed EIP greatly makes one bet per clean energy industry or innovation. He sees considerable capacity in startups concentrated on older industrials, like steel manufacturing-- hefty emitters racing to satisfy corporate as well as government deadlines to remove greenhouse gases.

" This is a multitrillion-dollar transition," he claimed. "To the victor go the spoils, and the spoils will be big."

EIP currently has $2 billion in possessions under management, as well as Alliant Energy Corp. as well as TC Energy Corp. are amongst its limited companions. In 2020, Microsoft went to EIP for its initial financial investment in the software titan's very own $1 billion climate fund.

Last year, investor and also private equity companies poured over $49 billion right into climate technology startups across the globe, according to BloombergNEF. Almost half of that total mosted likely to business in transportation like those making electric autos and also mobility scooters.

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