Net Zero Compare

Lowercarbon Capital Climate Venture: Powering Climate Innovation with Strategic Investments and Support

Written by Polina Martinuka
Published August 8th, 2024
7 min read

Summary

The firm provides financial backing, strategic support, network access, and market insights to early-stage and growth-stage companies. Their investments span various industries, including clean energy, carbon capture, sustainable agriculture, and materials innovation. They provide strategic guidance and valuable industry connections to help companies grow and succeed.
Our principle

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Details

Name
Lowercarbon Capital Climate Venture
Date of establishment
2018
Organization

Deep dive

"Fixing the planet is just good business. Shame and guilt won’t get us there, markets will."

Source: lowercarboncapital.com

Services

Venture Capital Funding

At the heart of Lowercarbon Capital's offerings is its venture capital funding. The firm invests in early-stage and growth-stage companies that are pioneering solutions to reduce carbon emissions and promote sustainability. By providing the necessary financial resources, Lowercarbon Capital helps these startups bring their innovative ideas to market. Examples of such companies include Charm Industrial, which focuses on carbon capture and storage, and Twelve, which transforms carbon dioxide into useful products.

Strategic Support

Beyond funding, Lowercarbon Capital offers strategic support to its portfolio companies. This support includes business development advice, market strategy formulation, and operational guidance. The firm's experienced team works closely with startups to ensure they have the tools and knowledge needed to scale effectively and achieve their environmental goals.

Network Access

One of the significant advantages Lowercarbon Capital provides is access to a robust network of industry experts, advisors, and potential partners. This network can open doors to new opportunities, collaborations, and markets. For startups looking to make a substantial impact, having connections to the right people and organizations can be transformative.

Market Insights

Navigating the complex landscape of clean energy and sustainability can be challenging. Lowercarbon Capital leverages its extensive experience and knowledge to provide valuable market insights to its portfolio companies. These insights help startups understand market dynamics, regulatory environments, and emerging trends, allowing them to make informed decisions and stay ahead of the curve.

Case studies

Charm Industrial

Charm Industrial focuses on capturing carbon dioxide (CO2) from the atmosphere and converting it into a stable, storable form. This technology has the potential to significantly reduce atmospheric CO2 levels, addressing one of the primary causes of climate change.

Lowercarbon Capital's Role: Lowercarbon Capital provided early-stage funding to Charm Industrial, enabling them to further develop and refine their carbon capture technology. The firm also offered strategic guidance and connected Charm Industrial with industry experts to accelerate their progress.

Impact: Thanks to Lowercarbon Capital's support, Charm Industrial successfully scaled its operations and demonstrated the feasibility of its technology. They have since partnered with major corporations and governments to implement large-scale carbon capture projects, contributing to global efforts to reduce greenhouse gas emissions.

Twelve

Twelve is pioneering technology that transforms carbon dioxide into useful products such as fuels, chemicals, and materials. This innovative approach not only reduces CO2 emissions but also creates valuable resources from what would otherwise be pollution.

Lowercarbon Capital's Role: Lowercarbon Capital invested in Twelve during its growth stage, providing the capital needed to expand its technology and market reach. They also offered market insights and strategic advice to help Twelve navigate the complex regulatory landscape and identify key market opportunities.

Impact: With Lowercarbon Capital's backing, Twelve has made significant strides in commercializing its technology. They have established partnerships with major companies in various industries, leading to the deployment of their CO2 transformation technology at an industrial scale. This has contributed to both emissions reductions and the development of sustainable products.

BlocPower

BlocPower focuses on retrofitting buildings with energy-efficient heating and cooling systems. By targeting older buildings in urban areas, BlocPower aims to reduce energy consumption and carbon footprints while also improving air quality and reducing energy costs for residents.

Lowercarbon Capital's Role: Lowercarbon Capital provided funding to BlocPower, enabling them to scale their retrofit projects across multiple cities. They also offered strategic support to help BlocPower refine its business model and expand its market reach.

Impact: Thanks to Lowercarbon Capital's investment, BlocPower has successfully retrofitted numerous buildings, resulting in significant energy savings and emissions reductions. Their work has also created jobs and improved living conditions in underserved communities, highlighting the social and environmental benefits of their approach.

Competitors

  1. Breakthrough Energy Ventures (BEV): Founded by Bill Gates, BEV focuses on funding scientific breakthroughs that aim to provide reliable, affordable, and emissions-free energy.

    Key Investments: QuantumScape (solid-state batteries), ZeroAvia (hydrogen-electric aviation), Fervo Energy (geothermal energy).

  2. Energy Impact Partners (EIP): EIP invests in companies transforming the energy landscape towards sustainability and efficiency, collaborating closely with a network of utility and industrial partners.

    Key Investments: Arcadia (clean energy access), Stem (energy storage and management), Opus One Solutions (grid optimization).

  3. Congruent Ventures: Focuses on early-stage investments in companies developing sustainable technologies across energy, mobility, and climate.

    Key Investments: Span (smart home energy management), Ample (electric vehicle battery swapping), Allbirds (sustainable footwear).

  4. Prelude Ventures: Invests in early-stage companies working on climate innovations in energy, food and agriculture, transportation, and manufacturing.

    Key Investments: QuantumScape (solid-state batteries), Planet Labs (satellite data for environmental monitoring), Pivot Bio (sustainable agriculture).

  5. Chrysalix Venture Capital: Specializes in industrial innovation and clean energy technology investments, focusing on resource efficiency and sustainable industry.

    Key Investments: CarbonCure (concrete sustainability), GaN Systems (power semiconductors), MineSense (mining technology).

  6. DBL Partners: A double-bottom-line venture capital firm that invests in companies aiming for financial returns and social, environmental, and economic benefits.

    Key Investments: Tesla (electric vehicles), SolarCity (solar energy), The RealReal (luxury consignment).

  7. Elemental Excelerator: A startup accelerator and venture fund that supports companies solving environmental problems through innovative technology.

    Key Investments: BlocPower (energy-efficient building retrofits), Enbala (grid optimization), Carbon Lighthouse (building efficiency).

  8. Generate Capital: Focuses on sustainable infrastructure investments, providing funding for projects in renewable energy, waste management, and water systems.

    Key Investments: Generate's portfolio includes solar and wind farms, energy storage projects, and water treatment facilities.

Driving Sustainable Change

Lowercarbon Capital's comprehensive suite of services is designed to accelerate the development and adoption of technologies that combat climate change. By combining financial support with strategic guidance, network access, and market insights, they are helping to build a more sustainable future. Their investments are not just about financial returns but also about creating a lasting positive impact on the environment.

Understanding the Pricing and Investment Approach

Investment Approach

  1. Stage of Investment:

    • Early-Stage Funding: Lowercarbon Capital often invests in early-stage startups that are in the initial phases of developing their technologies. These investments are crucial for research, development, and initial market entry.

    • Growth-Stage Funding: The firm also supports companies that have proven their concept and are looking to scale. This phase includes expanding operations, entering new markets, and increasing production capabilities.

  2. Types of Investments:

    • Equity Investments: Lowercarbon Capital typically makes equity investments, where they provide capital in exchange for ownership stakes in the company. The percentage of equity taken varies based on the startup's valuation, funding needs, and growth potential.

    • Convertible Notes: In some cases, they might use convertible notes, which are loans that convert into equity at a later stage, often during a subsequent funding round.

  3. Funding Amounts:

    • Varied Investment Sizes: The amount of funding Lowercarbon Capital provides can vary widely, depending on the specific needs and potential of the company. Early-stage investments might range from hundreds of thousands to a few million dollars, while growth-stage investments can be significantly larger.

Strategic Support and Value Addition

  1. Strategic Guidance:

    • Lowercarbon Capital offers strategic advice to help startups refine their business models, market strategies, and operational plans. This support is tailored to the unique challenges and opportunities within the clean energy and sustainability sectors.

  2. Network Access:

    • Startups benefit from Lowercarbon Capital’s extensive network of industry experts, advisors, and potential partners. This access can open doors to new opportunities, collaborations, and markets.

  3. Market Insights:

    • The firm provides valuable insights into market trends, regulatory environments, and emerging technologies. This knowledge helps startups navigate the complex landscape of the clean energy and sustainability sectors.

For more information, contact Lowercarbon Capital directly through their official website.


Polina Martinuka
Written by:
Polina Martinuka
Sustainability Research Analyst
Recently graduating from a university in the UK, with a Bachelor's degree in Multimedia Journalism, Polina brings a unique blend of investigative skills, the ability to analyze complex data and environmental awareness.