Queensland’s sovereign wealth fund on Tuesday hopped into a $125 million climate technology venture capital fund, boosting the funding available to local startups while expanding its global climate mandate.
The Queensland Investment Corporation contribution is undisclosed but InnovationAus.com understands it is around $10 million.
The move bolsters the country’s largest climate tech venture outfit Virescent Ventures, which already has the backing of Australia’s green bank and Westpac, and plans to pump up to $200 million into local startups over 10 years.
Virescent Ventures announced the first close of the ‘fund II’ in October at $100 million but is eyeing double the amount and says its first investments are now imminent.
Around a dozen more investors have joined cornerstones Westpac and the Clean Energy Finance Corporation (CEFC) since the announcement, pushing fund II to more than 60 investors and $125 million available.
“With abundant natural resources, significant human capital and a steady regulatory environment, Australia has an immense opportunity to be a global leader in climate technology innovation and commercialisation,” Virescent managing partner Kristin Vaughan said.
Virescent was spun out of the CEFC in 2022 to manage the national green bank’s portfolio. Its initial fund deployed more than $270 million across dozens of ventures.
Initial investees include Wollongong electrolyser maker Hysata, electric vehicle charging infrastructure company JET Charge and agribusiness Loam.
The QIC, which acts as the state government’s independent investment manager, has joined the latest push as part of its own climate mandate.
The corporation’s private equity arm has been deploying capital in Australia, the US and Europe after more than a year of market mapping. Its first investment was in European climate investor Blume in September.
“This commitment stems from a desire on behalf of our clients to drive change, whilst also benefitting from what we believe to be a generational investment theme,” QIC private equity investment director Lottie Bryon said.
“We believe Blume is particularly well equipped to address this opportunity, and we are excited to be partnering with them.”
Outside the climate mandate, the QIC also seeded a Queensland Venture Capital Development Fund. The $150 million is attempting to lure VCs to the state and also funds startup accelerators.
Do you know more? Contact James Riley via Email.