At One Ventures, a San Francisco, CA-based climate tech venture capital firm, announced the close of its second fund, at US$375M.
Limited Partners included GenZero, the Temasek-owned decarbonization-focused investment platform company, World Wildlife Foundation, the MacArthur Foundation, CalSTRS, and New Mexico State Investment Council, as well as mission-aligned individual investors and family offices such as One Small Planet, Toba Capital, and Valhalla Foundation.
Fund II will focus on backing early-stage startups with disruptive technologies that can improve planetary health by resetting the industries causing the most damage to the planet, such as buildings and construction, energy and transportation, and food and agriculture.
Founded in 2020 by Tom Chi, founding member of Google X, At One Ventures At has an investment thesis based on what it calls the Triad, which consists of 1) a disruptive deep tech that ushers in 2) radically better unit economics paired with 3) radically better environmental economics. While the firm focus on traditional climate technology industry verticals, it has an additional layer of impact categories–Air, Water, Soil, and Biodiversity–and carefully tracks the positive impact its portfolio companies have on each of these areas.
The firm also has a globally distributed portfolio, with 70% of companies in North America, 15% in Europe, and 15% across Africa, South America and Israel. To date, At One has invested in 35 startups, including battery recycler Ascend Elements, de-extinction company Colossal Biosciences, and biodegradable packaging supplier Cruz Foam.
Fund II is more than double that of Fund I (US$150M in October 2021), bringing the firm’s total AUM to over half a billion.
Commenting on the close of the fund, Founding Partner Laurie Menoud said: “Consumers might be okay with paying slightly more for sustainable goods, or a ‘green premium,’ but industrial businesses are far more cost-sensitive.
“Take the EV industry. We are shifting from a fuel economy to a materials economy. Each electric vehicle requires over 100kg of mined metals in its battery pack. This demand puts pressure on the mining industry, bringing with it social and environmental challenges. That’s why we invested in Ascend Elements, an advanced materials company that recycles end-of-life lithium-ion batteries and reintegrates the recycled metals directly into EV batteries. With stronger unit economics and similar cathode material performances, they make it an obvious choice for EV automakers to adopt the solution, driving faster positive environmental impact.”