The DCVC Climate Select fund, a brainchild of technology firm DCVC, aims to fill the funding vacuum for mid-stage climate startups. Spearheaded by Matt Ocko and Zachary Bogue, who have a track record of investing $360 million into sustainable projects over the last decade, this new fund seeks to bolster the growth of companies making strides in the climate sector.
Despite initially targeting a fundraising goal of $500 million, adjustments had to be made when only $157 million was raised in the inaugural year. Determination prevailed and now, signs suggest that the fund might be nearing the $400 million mark.
DCVC’s committed focus on climate-positive ventures has reaped profitable returns, as evidenced by the success of portfolio companies, Twelve and Pivot Bio. Twelve’s recent deal with the International Airlines Group, for 260 million gallons of eco-friendly aviation fuel, marks a major step towards major industries adopting green solutions. Moreover, Pivot Bio’s innovative bio-engineered fertilizer, which can drastically reduce agriculture’s carbon emissions, has been quickly embraced by farmers, yielding significant profits for DCVC.
Venture capital firms weathered through a financial roller-coaster between 2022 and 2023, with amassment swings from a high of $172 billion to a low of $66.9 billion.
Progress of DCVC’s climate-centric fund
Contributing to this fluctuation was the ending of funds collected in 2021. These events prompted firms to diversify investments and look towards sectors such as clean energy, life sciences, and digital technology.
Although 2023 saw a fundraising decline, there was a noticeable uptick in climate-focused investments. Climate-specific funds accrued over $710 million in 2024, suggesting they could match or bypass the $2.17 billion raised in 2023, and potentially tackle the 2022 record of $2.9 billion. It underlines increased investor confidence in green technologies, and positions climate funds as a key player in achieving global climate goals.
The increasing investor interest in climate-focused ventures, despite the bleak outlook for venture capital fundraising in 2024, spark hopes for the DCVC Climate Select fund to thrive. Investors and market watchers eagerly await what the fund will bring, as it may serve as a shining example of potential growth in the uncertain venture capital landscape.
