Portugal-based electric utility EDP has committed a further €100m ($110m) to its corporate venturing unit as a host of companies target commitments to sustainable-focused VC funds.
EDP Ventures’ new mandate represents the ambition to double by 2025 the utility’s commitment to startups and companies.
It said it would now participate in both series B and C rounds to support energy and hydrogen-focused innovation with plans to invest up to €10m per company. EDP is also expanding to the US and Asia beyond operations in Europe, Israel, and Latin America through an existing regional fund based in Brazil.
Ana Paula Marques, executive board member at EDP, said: “As the electricity sector moves at unprecedented speed, we want to work with the most promising startups, with a clear focus on projects that represent growth opportunities.”
Separately, other corporations are expanding into venture capital through commitments to third-party VC firms. Venture capital firm Markd raised $100m for its debut fund for early- and growth-stage insurance startups from Markd founder and managing partner Parker Beauchamp and an undisclosed industry partner.
New York-listed water technology company Xylem has become a limited partner (LP) in Burnt Island Ventures, which focused on supporting early-stage water innovation, and Westly Group’s Funds III and IV that back energy, industry 4.0, and cybersecurity startups.
The combined $20m commitments across the funds is an expansion of its external innovation program, Xylem Innovation Labs.
David Flinton, chief innovation, technology and products officer at Xylem, said: “A key element of Xylem’s innovation ecosystem is investing in early-stage technology, whether developed in-house, or by promising external entrepreneurs and innovators.”
The Nature Conservancy and Grantham Foundation have joined angel investors in backing VC firm Voyager Ventures’ first fund of $100m targeting early-stage climate technology companies in North America and Europe.
Eva and Logan Green, CEO of Lyft, joined the founders of Segment, Shopify, Supercell, Unity and Tableau, along with general partners from Union Square Ventures, NEA, Insight, and Lowercarbon in committing to Voyager Fund I.
Other forms of impact investing have gained corporate support. US-listed healthcare company Johnson & Johnson (J&J) is understood to have expanded its impact fund to $50m from $15m at the end 2021 while Canada-listed phone operator Telus has committed $1m to ScaleGood Fund, which is trying to raise C$10m.
Telus, which also operates its $100m Telus Pollinator Fund for Good and Telus Ventures CVC units, and Edmonton Police Foundation have backed the new social impact fund designed to support graduates of the Telus-sponsored Community Safety and Wellness Accelerator (CSW) program.
JetBlue Technology Ventures (JTV), the corporate venture capital subsidiary of Nasdaq-listed airline JetBlue Airways, has become a limited partner in TPG Rise Climate, a multibillion-dollar investment fund set up by alternative investment firm TPG.
“TPG Rise Climate is deploying capital quickly to tackle the world’s rising carbon emissions, and we are eager to work alongside their team to ensure that the future of travel is a sustainable one,” said Amy Burr, president of JTV, which has four direct investments, including Universal Hydrogen and Joby Aviation, in climate tech.
Separately, JTV and JetBlue joined the Aviation Climate Taskforce, a nonprofit organization founded by 10 airlines and the Boston Consulting Group to accelerate breakthroughs in emerging technologies to decarbonize aviation.
Natural Gas Innovation Fund (NGIF), a Canada-based, corporate-backed, venture capital firm, has extended its debut fund to $55m from 8 LPs.
The latest was TriSummit Utilities, a Calgary-based owner and operator of natural gas utilities and renewable power assets, which committed to NGIF Cleantech Ventures.
The fund has already backed portfolio companies, including ThermoLift, Ekona Power, Ionomr Innovations and Ionada, since its prior closings last year.
“TriSummit’s executive leadership team is confident in NGIF Cleantech Ventures’ ability to create transformative value for the natural gas sector and help us meet our energy transition goals,” said Jared Green, president and CEO of TriSummit.
Also in Canada, VC firm Evok said it had closed its second fund at $300m with founding LPs, local corporations Suncor and Cenovus Energy, re-upping.
Evok Fund II has new LPS in state-backed Export Development Canada and local banks RBC and TD and will back early-stage startups in industrial decarbonisation and energy transition.
Another corporate-government initiative, Leadwind, has separately raised €140m.
K Fund, the fund manager of Leadwind, said Spain’s government would invest up to €70m from the ICO Next Tech Fund in Leadwind, thus becoming the main public investor in the fund.
Spain-listed phone operator Telefónica also said it would provide about 35% of the total fund, which is targeting a final close at €250m. Other LPs include local companies BBVA, Go-Hub and Satec, as well as institutional investors, such as Axis-ICO, and private family offices.
Irene Gómez, director of open innovation at Telefónica, which made the commitment through its Telefonica Ventures CVC unit, said: “Leadwind is a great example of how public and private collaboration can drive scaleup entrepreneurship, taking another step towards the maturity of the ecosystem by investing in more advanced stages of the companies.”
Launched in September 2021 by Spain-based global telco Telefónica together with K Fund, Leadwind backs deep tech businesses located in southern Europe, prioritising Spain, and Latin America.
The fund plans to set up an office in São Paulo, Brazil
Over in the UK, defence alliance NATO (North Atlantic Treaty Organisation) has chosen London as the base for its Nato Defence Innovation Headquarters and $1bn strategic investment fund.
