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Climate Tech

Westpac & CEFC underpin new $200 million climate tech VC fund

- October 8, 2024 2 MIN READ
Virescent Ventures Blair Pritchard, Westpac COO Peter Herbert and the bank's chief sustainability officer, Michael Chen, CEFC CEO Ian Learmonth and Virescent managing partners Kristin Vaughan and Ben Gust.
Specialist climate tech investor Virescent Ventures is halfway towards its goal of creating a new $200 million fund thanks to backing from  Westpac and the government-backed Clean Energy Finance Corporation (CEFC).

Virescent Ventures hit the $100 million first close of its second climate technology investment fund (Fund II), following on from the first portfolio, managed on behalf of the CEFC, which has deployed $270 million across 34 Australian climate tech investments. 

The VC’s previous investments from the CEFC’s Innovation Fund, launched in 2022, include green hydrogen startup Hysata’s record $172 million Series B, textiles dyeing climate tech startup Xefco’s $10.5 million Seed extension, an $8 million Seed round for batteries recycler Renewable Metals, and soil decarbonisation agtech Loam Bio, in a $105 million Series B.

Virescent’s Fund II will prioritise strategic investments in net zero startups tackling issues such as the clean energy transition, electrifying the economy and improving grid management, decarbonising transport and developing smarter cities, sustainable food and agricultural systems, and the circular economy. 

Virescent managing partner Kristin Vaughan said it was a generational opportunity for innovation, growth and impact.

“The transition to a  sustainable, lower-emissions global economy presents unprecedented opportunities for  innovation and investment across all areas of the economy,” she said.

“Australia is uniquely placed to accelerate this transition and capitalise on these opportunities by being a world leader in climate technology.” 

Her colleague Ben Gust said they were pleased to have the support of Westpac and their long-term partner in 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,” he 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.”

CEFC CEO Ian Learmonth said they’re proud to be a cornerstone investor in the new Virescent fund II.

“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,” he said

“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.” 

Other climate tech companies Virescent has backed include ultra-lightweight solar panels developer Sunman; MicroTau, an innovator in aircraft drag  reduction technology; battery energy storage startup Relectrify; and Novalith, which is developing a faster, cheaper and cleaner process to extract battery-grade lithium.