Kiko Ventures will invest $450M in cleantech startups

Keiko Ventures is announcing that it has created a $ 450 million venture capital fund focusing on cleantech investments.

The goal is to support a transformative clintech. This comes at a time when global investment in Clintek reached an all-time high of $ 40 billion in 2021. And events during 2022 have given more impetus to sustainable technologies. Time is of the essence as many funds are considering withdrawing investment due to the expected slowdown in the economy and high inflation.

However, there are structural barriers to the existing funding landscape. The ecosystem lacks the flexibility needed to best address the climate challenge. The London-based Kiko Ventures team has invested decades in supporting world-leading businesses, including Climate Tech and Ceres Power, First Light Fusion and Oxbotica.

Keiko’s evergreen structure provides exceptional flexibility and strong, long-term alignment with climate tech entrepreneurs.

Launched by FTSE 250-listed investment firm IP Group, Kiko Ventures is a new investment platform designed to support and grow future class-leading climate tech champions. The team plans to raise $ 245 million over the next five years using IP Group’s flexible capital platform. Keiko will launch with existing assets valued at more than $ 215 million, as well as a number of new investments already made under the Keiko strategy. The IP group gave all the money.

Kiko benefits from the IP Group’s evergreen structure: through which exit returns can be recycled into new opportunities, allowing a true evergreen portfolio without a crossover between fund vehicles and with a very long horizon.

With the need for increasingly urgent solutions to avoid the most damaging aspects of climate change, Kiko Ventures is seeing a resurgence of climate tech investment around the world. Climate tech VC figures show that global investment reached an all-time high of $ 40 billion last year.

Recent developments in Europe have also focused on the need for more sustainable energy sources. However, most investors in Clintek operate traditional fund structures or adhere to the corporate Venture Capital (CVC) business agenda, which imposes barriers on the existing financing landscape.

The founding team of Kiko Ventures, an established IP group led by veterans Robert Trezona and Jamie Wallbracket, joins the Clintech team with new partner Arne Morteni, who spent 14 years earlier helping to build one of Europe’s leading Clintech VC funds. The entire team has dedicated their careers to climate tech and the three partners have navigated two economic cycles as investors in space.

The team is now designed by Kiko Ventures, which takes advantage of the IP Group’s evergreen platform to take a more flexible approach without the short-term horizons, fixed capital limitations and narrow commands that are common in the industry. So Keiko is exceptionally connected to entrepreneurs who want to create category-leading companies in the long run. The team aims to be a reliable partner for both entrepreneurs and fellow investors in enriching the current ecosystem and building a regenerative future.

As an evergreen platform without a fixed 10-year investment mandate, Keiko Ventures can be a flexible investor, capable of doing what is required. It can become an entrepreneur by creating ventures of new companies, investing in the Seed and Series A / B stage or choosing to take advantage of opportunities in the public capital markets.

The team has global experience managing all of these phases. As one of the largest climate-tech investors in Europe, Kiko Ventures will invest primarily directly, and occasionally through indirectly selected funds. It will combine this structural flexibility with a focus on areas of the subject where it can build deep skills and value.

“I believe in the transformative power of climate technologies and have worked throughout my career to elevate ideas from the lab into workable solutions that could make our world a better place,” Robert Trezona, a founding partner of Kiko Ventures, said in a statement. . “We have launched Kiko to unleash the full power of human ingenuity by uniting ideas, skills and capital to unlock a sustainable future. To do this, we have created a truly flexible capital investment model that empowers rather than hinders change. “

The team has historically made ambitious investments in high-profile areas. Examples include the fuel cell firm Ceres Power, which the team helped get out of the unicorn; First Light Fusion, which recently achieved the world’s first fusion result; And a leader in autonomous mobility software supplying some of the world’s largest companies such as Oxbotica, BP and ZF.

“Immediately after leaving university, I realized the urgency of the climate crisis and decided to dedicate my career to doing what I could to help,” Keiko Ventures founding partner Jamie Wallbracht said in a statement. I felt that I was the most useful in the commercialization of innovative clean technology and have since tried to develop better ways to help those technologies flourish. Keiko brings together all the insights I have been fortunate to have gained over the last two decades and I hope it will have a big positive impact on the journey to a sustainable future.

In two decades, the team has undertaken operational and investment roles to manage innovative businesses in difficult economic environments, including the first Clintech boom and the Bust and Covid-19 epidemics. In addition, most teams began their successful research careers in Climate Tech and therefore combine professional experience with an understanding of the deeper technologies behind many of the most innovative innovations.

Through the IP group, Keiko Ventures has a global footprint and a network of high-level contacts from the lab to the boardroom. The team has been interacting frequently with some of the world’s leading scientists and entrepreneurs, as well as a wide range of industry and capital market leaders.

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