The Climate Venture Capital Fund is finding plenty of investment opportunities on both sides of the Tasman, with nearly $2.5 million invested in its first full year of operations.
The fund was focused on investment in early-state New Zealand and Australian companies that deliver high climate impacts, alongside high growth and returns associated with high risk investment funds.
It also targeted investments in companies that would collectively reduce emissions by at least one million tonnes (CO2 equivalent) for every $50m of investment over the life of the fund.
Fund partner Rohan MacMahon said that ambition would be easily achieved.
“It’s incredibly satisfying to look back on this first year and see that we have delivered on what was promised,” fund partner Rohan MacMahon said.
“We know there is strong interest among investors in emissions reduction technology.
“And we’ve seen that there are more opportunities to invest than we can possibly support.”
The company had so far invested in four companies, including Australia’s thermal energy storage firm, MGA Thermal; New Zealand’s low emissions powdered cleaning and personal care products, Cleanery; green ammonia business Liquium; and zinc recycling business, Zincovery.
MacMahon said the fund was targeting the same level of investment in the current year ending in March 2024.
While the fund targeted wholesale investment, he said it was also seeing institutional investor interest, which would potentially allow retail investors to take part in future investment rounds.