NEW YORK, Sept. 27, 2023 (GLOBE NEWSWIRE) -- BXVentures, a leading venture studio and climate tech specialist, announced today that it is pioneering the launch of a global climate tech venture studio fund. With a targeted raise between $200 million and $250 million, BXVentures is addressing the innovation gap created by the lack of institutional capital and support at the launch stage of early climate tech startups. Already having launched two successful venture studios in North America and Europe, a global venture studio strategy within a fund structure will empower BXVentures to scale its model globally and accelerate climate innovations.
With a global venture studio strategy within a fund, BXVentures will be able to scale its already proven approach to addressing R&D inefficiencies and unlocking the abundance of trapped, yet promising climate technologies at leading universities around the world. With this fund, and through partnerships with elite institutions like McGill University, BXVentures will fund and launch groundbreaking climate tech innovations, providing the requisite capital and support on a global scale to transform innovations into successful, market-ready ventures.
BXVentures identifies investment targets based on promising climate R&D from world-class universities that can be spun-out into business ventures. First, BXVentures conducts rigorous and in-depth due diligence on the research and/or technology. Through its advisory arm, BXV Advisory, BXVentures is able to utilize its corporate relationships to validate technology concepts pre-launch, provide a natural customer base for products and services after launch, and potentially facilitate exits for its spun-out companies.
“As the escalating effects of climate change become increasingly apparent, accelerating lab-to-market adoption of innovative climate technology solutions is becoming increasingly paramount,” said Romain Decorps, Managing Partner at BXVentures. “In contrast to the traditional VC model, Venture Studios create companies from scratch and provide both capital and operational support. This strategy has historically resulted in higher equity stakes and a higher success rate for the underlying companies, which ultimately enables a compelling opportunity to dramatically increase climate impact by bringing meaningful technologies to market.”
Venture studios have emerged over the last decade as a high-performing asset class given their impressive success rate, proven iteration process and speed of development, and are especially suited for efficiently generating technology solutions for corporate partners. According to a Global Startup Studio Network report, the model has historically delivered a 60% success rate of reaching Series A, of which 35% of companies IPO’d or were acquired and 5% of companies became unicorns.
An investment and operational gap to support the launch stage of startups exist as institutional capital has focused its investment efforts elsewhere within the funding chain - just 2% of all climate tech funding in 2022 went to pre-seed and seed companies according to OECD, resulting in a lack of viable climate tech companies created. BXVentures bridges this gap with its venture studio model that accelerates the spin out of university technology and IP to build commercially viable ventures.
“With our unique de-risking methodology, hands-on entrepreneurial co-piloting, and milestone-based funding, we’ve developed a proven and repeatable proprietary process to identify and spin out climate tech R&D,” said Daniel Malek, Managing Partner at BXVentures.
As an illustration of its process, leveraging its partnership with McGill University, BXVentures is getting ready to announce the spin-out of groundbreaking climate technology focused on revolutionizing long duration energy storage.
“Between the partnership with universities and the launch of this fund, BXVentures is well on its way to building impactful, climate-focused business ventures to be deployed globally,” said Fernand Dimidschstein, Group CEO & Managing Partner at BXVentures.
“Our collaborative team, combined with the venture studio within a fund structure makes this the ideal opportunity to propel early-stage green investments,” added Olympia De Castro, Managing Partner at BXV Capital.
About BXVentures
BXVentures is a leading venture studio and global climate technology specialist, building the next wave of groundbreaking technology companies for a sustainable and livable biosphere. Established in 2021, BXVentures’ venture studio platform enables it to finance, develop and scale ventures that play a critical role in achieving a net-zero society, addressing the urgent challenges of climate change. Through partnerships with elite educational institutions like McGill University, BXVentures leverages groundbreaking technology trapped within universities’ R&D and provides the operational resources necessary to scale to commercialization. The consulting arm, BXV Advisory, regularly collaborates with corporations, institutions and governments to foster an ecosystem that ultimately accelerates the ventures path to market. Learn more: https://www.bxventures.com/
Contact:
bxventures@fischtankpr.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/546e50c3-e3bc-4735-8fbf-07983af03a49
