Kiko Ventures announces $ 450 million venture capital fund clean technology investments.
The goal is to support transformative clean technology. This comes at a time when global investment in clean technology will reach an all-time high of $ 40 billion in 2021. The events of 2022 have accelerated the pace for sustainable technologies. Time is of the essence as many fund investments are expected to be withdrawn due to the expected recession in the economy and high inflation.
However, there are structural limitations to the current funding landscape. The ecosystem does not have the flexibility required to optimally address the climate problem. The London-based Kiko Ventures team has invested in climate technology for decades and supported leading businesses around the world such as Ceres Power, First Light Fusion and Oxbotica.
Kiko’s evergreen structure provides exceptional agility and a strong, long-lasting adaptation with climate technology entrepreneurs.
Launched by FTSE 250-listed IP Group investment company, Kiko Ventures is a new investment platform designed to support and develop future climate technology champions in the future category. The team plans to invest $ 245 million over the next five years using IP Group’s flexible capital platform. Kiko will start operations with existing assets worth more than $ 215 million, as well as a number of new and unannounced investments under the Kiko strategy. IP Group gave all the money.
Kiko benefits from the IP Group’s evergreen structure: through it, revenue from outputs can be turned into new opportunities, allowing you to create a truly evergreen portfolio without switching between funds and over a very long time horizon.
With the increasingly urgent need to address the most damaging aspects of climate change, Kiko Ventures sees a resurgence of climate technology investment around the world. Climate Tech VC figures show that global investment reached an all-time high of $ 40 billion last year.
Recent events in Europe have also drawn attention to the need for more sustainable energy sources. However, most investors in cleantech have to manage traditional fund structures or follow corporate venture capital (CVC) commercial agendas that place restrictions on the current funding landscape.
Kiko Ventures’ founding team, led by veterans Robert Trezona and Jamie Vollbracht, joins the created IP Group cleantech team with new partner Arne Morteani, who previously spent 14 years creating one of Europe’s leading cleantech VC funds. The entire team has dedicated their careers to climate technology, and the three partners have gone through two economic cycles as space investors.
The team designed Kiko Ventures, which uses IP Group’s evergreen platform to implement a more flexible approach without the short time horizons, fixed capital constraints and narrow mandates that are now common in the industry. Therefore, Kiko is in solidarity with entrepreneurs who want to build exceptionally long-term leading companies in the category. The team’s goal is to enrich the existing ecosystem and be a reliable partner for both entrepreneurs and other investors in building a renewable future.
As an evergreen platform without a 10-year fixed investment mandate, Kiko Ventures can be a flexible investor who can do what is required. This could be entrepreneurship through the creation of new companies, investing in the Seed and Series A / B phase, or choosing to take advantage of opportunities in public capital markets.
The team has global experience in operating at all these stages. As one of Europe’s largest climate technology investors, Kiko Ventures will invest primarily through direct and sometimes indirect funds. It will combine this structural flexibility with a focus on thematic areas where deep experience and value can be created.
Robert Trezona, co-founder of Kiko Ventures, said: “I believe in the changing power of climate technology and have worked all my career ideas from the lab to practical useful solutions that can make our world a better place.” “We launched Kiko to unleash the full power of human invention by combining ideas, experience and capital to unlock a sustainable future. To this end, we have created a truly flexible capital investment model that strengthens change, rather than hindering it. ”
The team has historically made ambitious investments in high-confidence areas. Examples include Ceres Power, a fuel cell company that helped the team lead a one-horned horse race; First Light Fusion, which recently achieved the world’s first fusion result; and Oxbotica, a leader in autonomous mobility software that provides the world’s largest companies such as BP and ZF.
Jamie Vollbracht, co-founder of Kiko Ventures, said, “Shortly after I left university, I realized the urgency of the climate crisis and decided to dedicate my career to doing my best to help. I have found myself trying to come up with better ways to help. Kiko brings together all the ideas I have gained over the last two decades, and I hope that this will have a great positive impact on my journey into a sustainable future.
For more than two decades, the team has taken on the operational and investment roles of leading innovative businesses in difficult economic climates, including the first clean technology boom and bust and the Covid-19 pandemic. In addition, most of the team began their successful research careers in climate technology, thus combining commercial experience with an understanding of the deep technologies behind many transformational innovations.
Through the IP Group, Kiko Ventures operates globally and has a high-level network of connections from laboratories to boarding houses. The team is in frequent contact with some of the world’s leading scientists and entrepreneurs, as well as leaders in a wide range of industrial and capital markets.