Energy Capital Ventures (ECV), a US-based venture capital firm targeting the natural gas distribution industry, has raised $45m for its debut fund with commitments by five publicly-traded utilities.
ECV said it would work collaboratively with its corporate limited partners: Avista Utilities, Black Hills, NiSource, Southwest Gas and Spire.
The fundraising came after NGIF Capital, a Canada-based venture capital firm focused on natural gas-related technology ultimately owned by industry association Canadian Gas Association, completed a C$50m ($39.7m) second close of its debut fund last month.
Vic Pascucci III, managing general partner of ECV and former head of corporate venturing at financial services provider USAA, set up ECV last year. He said: “The opportunity to provide a platform to foster innovation and collaboration for our strategic partners who play such a critical role in our country’s energy transformation is truly amazing.”
Joining Pascucci as general partners are two energy sector investment bankers, Jeff Yingling and Ray O’Connor, and insurance technology investor Rick Viton, who is also a partner with VC firm IA Capital.
ECV will leverage IA Capital’s strategic investment philosophy as well as the numerous synergistic relationships, technologies, market dynamics and innovation trends between insurance and financial technology and the utility industry.
Avista president and CEO Dennis Vermillion said: “By investing in Energy Capital Ventures, we are also supporting and enabling the innovation of other companies that could bring new technologies to market to help advance our energy industry.”
Linn Evans, president and CEO of Black Hills, added: “This collaborative investment in Energy Capital Ventures in a cleaner energy future through safe and reliable natural gas technologies aligns with our ambition to make tomorrow even better than today.”
