Hello ESG in VC followers,
Welcome to the 11th edition of ESG in VC Insights. Curated with 🖤 every month by the ESG in VC team.
ESG in the News
23 venture capital firms come together to form the Venture Climate Alliance, pledging to cut or net out their greenhouse gas emissions by 2030 and those of their portfolio companies by 2050
In its recent article, Sifted evaluates the role of private investors in ESG including whether there is a need for in-house sustainability expertise; In another article, it examines which ESG clauses are finding their way into venture capital term sheets
Despite continued political pushback against ESG, only 3% of organizations are planning to decrease their investment in ESG initiatives per Gartner Business Quarterly (See page 4 of the pdf)
Do investors care about impact? A recent study out of Oxford suggests that sustainable investors have a greater willingness to pay for mission-driven companies, but are relatively insensitive to the extent of their impact
Crowdfunding platform, Seedrs, discusses the continued rise of ESG-aligned investing, noting 47% more sustainability-focused businesses received investment on its platform over the past year
The Regulatory Report
Thompson Reuters examines what companies located and operating in the EU should anticipate from Europe’s new Corporate Sustainability Reporting Directive (CSRD)
According to the current draft of the EU’s Corporate Sustainability Due Diligence Directive, company executives may face bonus cuts if their company fails to meet climate targets
The US Environmental Protection Agency proposes new rules to limit pollution from existing power plants as part of the Biden administration’s recent string of progressive climate policies
ESG Clarity discusses the shortcomings of Europe’s Sustainable Finance Disclosure Regulation (SFDR)
Noteworthy Raises in E
🌍Europe
Recycling startup, Tradefox, a Netherlands-based data management platform aiming to gather analysis to promote the efficient recycling of scraps, raises $483k of crowdfunding via Wefunder
Mico-mobility startup, HumanForest, a London-based affordable and environmentally responsible bike platform, raises £12 million of Series A funding (£7 million equity, £5 million debt) led by Vicente Pascual, Laura Gonzalez-Estéfani, and other undisclosed investors
Energy storage startup, Energy Dome, a Milan-based developer of the “CO2 battery” a long-duration energy storage system, raises EUR 40 million of venture funding led by Eni Next and NEVA SGR
Clean mobility startup, Virta, a Helsinki-based operator of electric car charging stations, raises EUR 85 million of venture funding through a combination of debt and equity led by Helen Ventures and Future Energy Ventures
🌎North America
Energy efficiency startup, BrainBox AI, a Montreal, Canada-based HVAC technology designed to proactively optimize the energy consumption of buildings, raises $20 million of venture funding led by ABB Technology Ventures and the Government of Quebec
AgTech startup, CH4 Global, a Henderson, Nevada-based developer of red seaweed additives for cattle food to dramatically reduce methane emissions, raises $13 million of Series A funding led by DCVC and DCVC Bio
SDGs - 13
Clean mobility startup, Unagi Scooters, an Oakland, California-based electric scooter platform, raises $29.3 million of later-stage VC funding led by The Ecosystem Integrity Fund
Reforestation startup, Flash Forest, an Ontario, Canada-based developer of hardware, aerial mapping software, and seed-pod technologies to restore depleted forestland, raises $11.4 CAD million of venture funding led by Telus Pollinator Fund for Good and OurCrowd
Environmental startup, Enspired Solutions, a Michigan-based developer of a clean water solution that transforms toxic PFAS into non-toxic solids, raises $1.2 million of seed funding led by Red Cedar Ventures
🌏 Asia, Africa & Australia
Clean energy startup, Yellow, a Malawi-based provider of financed solar systems and smartphones to households in rural Sub-Saharan Africa, raises an undisclosed amount of Series B funding from Triple Jump
Noteworthy Raises in S
🌍 Europe
EdTech startup, Edflex, a Paris-based developer of e-learning content for employee upskilling, raises EUR 12 million of Series B venture funding led by EduCapital
SDGs - 4
EdTech startup, Simango, a Rennes, France-based virtual reality training platform for hosipital staff, raises EUR 3.5 million of venture funding from Vivalto Partners, Breizh Up and Epopée Gestion
🌎North America
HealthTech startup, Hygieia, a Michigan-based developer of a diabetes insulin device designed to automatically adjust patients’ insulin doses, raises $22 million of Series B venture funding led by Firstime Ventures
SDGs - 3
FinTech startup, Standby Deposits, a New York City-based rent payment system based on credit scores to replace upfront deposits, raises $5.3 million through a combination of debt and equity form Stoðir and Brunnur Ventures
Mental health startup, Uwill, a Massachusetts-based platform connecting college students with mental health professionals, raises $30 million of Series A funding led by Education Growth Partners
SDGs - 3
HealthTech startup, Pattern, an Austin, Texas-based developer of a rapid test platform simplifying antibiotic selection for life-threatening infections, raises $23.5 million of Series C funding led by Omnimed Capital and Illumina Ventures
SDGs - 3
🌏 Asia, Middle East & Australia
EdTech startup, Carrot Solutions, a Seoul, Korea-based developer of an AI-enabled personalized learning platform, raises KPW 5 billion (~$3.8 million USD) of Series A funding led by the Industrial Bank of Korea and T.S. Investment
SDGs - 4
FinTech startup, Nomba, a Lagos, Nigeria-based provider of bespoke payment solutions for African businesses, raises $30 million of venture funding led by Base10 Partners
HealthTech startup, Janitri, a Bengaluru, India-based developer of a fetal-maternal monitoring system aiming to reduce infant and maternal mortality, raises INR 90 million of Pre-Series A funding led by India Accelerator
SDGs - 3
EdTech startup, Interactive Cares, a Bangladesh-based virtual ed-tech platform aiming to improve employability, raises $220k of Series A funding from Flagship Pioneering, Blue Aura Ventures, and Mohammad Maaz
SDGs - 4
Noteworthy Raises in G
FinTech startup, MoniMove, a London-based developer of a supply chain governance platform, raises an undisclosed amount of venture funding from GreenHouse Capital
Sustainability startup, FuturePlus, a London-based operator of an ESG reporting platform providing benchmark sustainability scores, raises £750k of venture funding from Two Magnolias, Vala Capital, and HNW Family Office
Latest Fund Announcements
New York-based Energy Impact Partners raises a new $111.9M fund, Elevate Future Fund I LP, to invest in clean energy businesses backed by underrepresented founders
Vietnam-based Mekong Capital plans to raise at least $150 million for its debut impact investment fund that will focus on nature-based solutions to combat climate change
Sweden-based Pale Blue Dot raises its second fund totalling EUR 93 million to invest in ClimateTech startups across the US and Europe
Oakland, California-based Illumen Capital closes its second $168 million fund of funds to back impact managers and help them adopt research-informed strategies to reduce racial and gender bias
ESG in VC Podcast
A new episode is coming out this week, so please stay tuned