Queensland Investment Corporation (QIC) is the latest major investor in Virescent Ventures’ new $200 million climate tech fund, joining cornerstone investors Westpac and the Clean Energy Finance Corporation.
QIC is reported to have tipped in around $10 million to take the total commitments in Virescent’s second climate technology fund to $125 million.
Since emerging from the CEFC’s Clean Energy Innovation Fund in 2016, Virescent Ventures has established itself as Australia’s largest dedicated climate technology investor,
Fund II is seeking to deploy $200 million into innovative climate tech companies and follows the success of Virescent Ventures’ first portfolio.
Managed on behalf of the CEFC, the first fund has seen more than $270 million deployed across 37 world-leading Australian climate tech investments across clean energy, sustainable agriculture, circular economy, and smart cities. Investments include lithium battery recycler Renewable Metals, green hydrogen electrolyser manufacturer Hysata’s record $172 million Series B, soil decarbonisation agtech Loam Bio, and textiles dyeing startup Xefco.
Supporting the next wave of Australian climate tech innovators
“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 managing partner Kristin Vaughan said.
Virescent Ventures Managing Partner Ben Gust added, “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.”
Commenting on its investment QIC investment director Lottie Bryon said, “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.
“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 expects to announce the first investment from the new fund shortly.