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BXVentures, a venture studio and climate tech specialist, has announced the launch of a global climate tech venture studio fund with a target of raising $200 million and $250 million.
BXVentures aims to address the innovation gap in early-stage climate tech startups by providing institutional capital and support for early-stage companies. This initiative will enable the scaling of BXVentures’ proven venture studio strategy on a global scale, accelerating the development and commercialization of impactful climate technologies.
BXVentures plans to leverage its venture studio model within the fund structure to address research and development inefficiencies and unlock the potential of promising climate technologies from top universities worldwide.
By partnering with institutions like McGill University, BXVentures will provide funding and support to launch groundbreaking climate tech innovations, transforming them into successful ventures ready for the market.
The venture studio fund will identify investment opportunities based on promising climate research and technology from leading universities, facilitating their spin-out into viable businesses. BXVentures will conduct rigorous due diligence on the research and technology, leveraging its corporate relationships through BXV Advisory to validate concepts, establish customer bases, and potentially facilitate exits for spun-out companies.
“As the escalating effects of climate change become increasingly apparent, accelerating lab-to-market adoption of innovative climate technology solutions is becoming increasingly paramount,” said Romain Decorps, managing partner at BXVentures, in a statement.
He emphasized the urgency of accelerating the adoption of innovative climate solutions and he highlighted that the venture studio model, which creates companies from scratch and provides capital and operational support, has historically resulted in higher equity stakes and success rates, offering a compelling opportunity to increase climate impact. Just 2% of all climate tech funding in 2022 went to pre-seed and seed companies according to OECD.
Venture studios have emerged as a successful asset class due to their high success rates, rapid iteration processes, and efficient generation of technology solutions for corporate partners. According to a Global Startup Studio Network report, the model has achieved a 60% success rate in reaching Series A funding, with 35% of companies going public or being acquired and 5% becoming unicorns.
BXVentures aims to bridge the investment and operational gap in supporting the launch stage of climate tech startups. Traditional institutional capital has focused elsewhere within the funding chain, resulting in limited funding for pre-seed and seed-stage companies. By accelerating the spin-out of university technology and intellectual property, BXVentures’ venture studio model creates commercially viable ventures and addresses the lack of viable climate tech companies in the market.
BXVentures, established in 2021, is committed to financing, developing, and scaling ventures that contribute to a net-zero society and address the urgent challenges of climate change. The company previously launched two venture studios in North America and Europe.
“With our unique de-risking methodology, hands-on entrepreneurial co-piloting, and milestone-based funding, we’ve developed a proven and repeatable proprietary process to identify and spin out climate tech R&D,” said Daniel Malek, Managing Partner at BXVentures, in a statement.
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