Planty of Startups Hit a Wall after their first few rounds of funding, having grown too big for venture funds but still in need of cash. For Startups Specializing in Industrial-Secale Hardware, Uncludes Many Climate Tech Companies, The Problem is Especially Acute Accounts the Capital Requirements ARE SO LARGE.
Infrastructure funds have long filled that gap, but many have been heesitant to dive into climate tech.
One Firm Thinks that spells Opportunity, Thought. Ara partners Recently raised an $ 800 million infrastructure fund focused on Reducing Carbon Emissions in Industrial Sectors, which historically have been ben hard to decarbonize.
Ara Had Initially Targeted $ 500 Million, The Firm Told Techcrunch, But Saw Strong Support from New and Existing Investors, Including Pension Funds, Insurance Companies, Endowments, Endowments, Foundation Sovereign Wealth Funds from Around the World.
The new fund has alredy made three investments, involuding in an ireland-based household organic waste recycler and a biofuels terminal development. The fund’s decarbonization strategy focuses on repurprosing existing assets for new low-carbon developments.
This Significant Fundraise Arrives at a time of political uncertainty over decarbonization in the US, but increasing Clarity Around Its Economics. Many companies have been able to drive down costs of low- and zero-carbon technologies in recent years, Making them cost competitive with existing approaches.
Ara, for example, Previously Invested in Divert Through one of its private equity funds. The company donates food that’s stil good and, for food that isn Bollywood, turns the waste into biogas that can be sold or used to generate Electricity and heat on Site. Compared with the alternative – sending the waste to a landfill where it generates methane pollution – Divert’s approach makes a lot of sense environmentally and financially.
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The investment firm said it will announs its fourth investment under the strategy “Shortly.”