Breakthrough Energy Ventures, the investment company supported by Bill Gates, has garnered approximately $839 million for its third main fund, as revealed by a recent SEC filing. The fund, like its predecessors, will focus on driving innovation in climate technology and backing startups committed to reducing emissions. The company disclosed that the new fund, known as BEVIII, will target green solutions in various sectors including electricity, transportation, manufacturing, and agriculture. However, details regarding the fund’s total size and timeline remain undisclosed.
In earlier reports, Breakthrough Energy Ventures closed its first fund, BEV I, at $1 billion in 2016, and its second fund, BEV II, at $1.25 billion in 2021. Bill Gates mentioned in an interview that the third fund would closely match the size of the first two, suggesting it will be around $1 billion. This addition aims to expand the firm’s existing portfolio by 40%. Breakthrough Energy Ventures has committed over $3.5 billion to more than 110 innovative companies, covering startups like QuantumScape and ZeroAvia. The previous funds have facilitated large-scale projects, highlighting the firm’s substantial impact in the climate tech sector.
Focus on Green Solutions
Breakthrough Energy Ventures, founded in 2015 by Gates and other high-profile investors such as Jeff Bezos and Jack Ma, targets startups that can demonstrate a significant reduction in emissions. The firm requires potential investments to show they can cut emissions by at least half a gigaton. The new fund BEVIII aims to continue this mission, emphasizing advancements in multiple industries. The company highlighted that its investment approach remains centered on tangible climate impacts.
Expanding the Portfolio
The firm has historically targeted a diverse range of technologies and sectors. Earlier this year, Breakthrough Energy Ventures co-led a $31.4 million funding round for Reactive Technologies, a company specializing in grid stability. It also participated in funding for startups like Koloma, which focuses on carbon-free hydrogen, and Xcimer, a fusion-tech company. This broad investment strategy ensures widespread impact across various domains, from energy storage to transportation.
Breakthrough Energy Ventures belongs to a broader group called Breakthrough Energy, launched by Gates after recognizing that venture capital alone could not address climate issues. This group includes policy teams, a fellows program, and a Catalyst initiative that funds large-scale projects. Gates has consistently advocated for tech-driven climate solutions, underscoring the importance of innovations such as AI in sustainable energy and carbon reduction. Additionally, his Gates Foundation has provided significant funding to support climate adaptation for smallholder farms.
The new fund BEVIII will further enhance the firm’s ability to support groundbreaking startups, thereby accelerating advancements in climate technology. The continued backing from high-profile investors and the strategic allocation of resources emphasize the pivotal role of investment in tackling climate challenges. By expanding its portfolio, Breakthrough Energy Ventures aims to drive substantial environmental impact, creating a sustainable future through innovation.
