Leading Aussie climate VC hits $100m milestone for new fund

Virescent Ventures, touted as Australia’s “most active dedicated climate tech venture capital” financers, has completed a $100 million initial close for its second climate technology investment fund, ‘Fund II’, attracting cornerstone investors Westpac and Australian Government-backed Clean Energy Finance Corporation.

The new fund will aim to invest $200 million in net zero initiatives that, Virescent says, will help “supercharge the growth of innovative climate tech companies”.

Fund II’s priority investments will be directed to Virescent’s broader portfolio of initiatives, spanning clean energy, decarbonisation of supply chains, sustainable food and agriculture projects, the circular economy, and development of smart cities.

The launch of Fund II follows the successful delivery of more than $270 million through Virescent’s first portfolio, Fund I, managed on behalf of the Clean Energy Finance Corporation (CEFC), to 34 Australian climate technology initiatives.

Among the beneficiaries of Fund I investments were Hysata, a world-leading hydrogen electrolyser manufacturer, JET Charge, Australasia’s largest EV charging infrastructure company, to establish Australia’s first electric truck recharging depot, and Loam, a microbial biotechnology firm which has developed a world-first biological seed treatment enabling farmers to capture, store, and monetise carbon in soil. As well, the fund has invested in ultra-light solar, aircraft drag reduction, and battery storage technologies.

Fund II has received backing from more than 50 investors, including Westpac and the CEFC, out of which Virescent spawned in 2022. The CEFC, the Australian Government-owned green bank, is tasked with delivering net zero emissions for the Australian economy by 2050, with access to $30 billion in Federal Government investment.

Gust said the organisation was “thrilled” to have the backing of both Westpac, Australia’s oldest bank, and long-term partner the CEFC, among more than 50 public and private investors.

“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.”

Fellow managing partner Kristin Vaughan added: “The transition to a sustainable, lower-emissions global economy presents unprecedented opportunities for innovation and investment across all areas of the economy. Australia is uniquely placed to accelerate this transition and capitalise on these opportunities by being a world leader in climate technology.

“Australia has abundant natural and renewable resources, deregulated energy markets, world-class universities and researchers, and government support for advancing clean technologies and industries. This is a generational opportunity for innovation, growth and impact, and we are excited to reach first close of Fund II.”