VC Firm Climate Angels Sets Up Special Cells To Back Climate Tech Startups

SUMMARY

Under these syndicates, Climate Angels will write off cheques between INR 3 Cr ($375K) and INR 10 Cr ($1.2 Mn) in climate tech-focused startups for the period of 6 years

Besides leading Climate Angels, most of its founders are also full-time entrepreneurs and investors

The climate tech-focused syndicates have been launched at a time when the Modi-led government aims to cut 45% carbon emissions by 2030

VC fund Climate Angels has launched special syndicates to help investors invest in climate tech startups easily.

Under these syndicates, Climate Angels will write off cheques between INR 3 Cr ($375K) and INR 10 Cr ($1.2 Mn) in climate tech-focused startups for the period of six years.

In addition, Climate Angels allows investors including angel investors and corporates working in energy, cleantech and other allied sectors to participate in startups’ fundraising rounds or lead their own syndicates using the VC firm.

“Realising the need to combat climate change, conscious investors such as senior executives, HNIs, family offices and others are scouting for opportunities to support climate tech startups for the green cause. Notably, SEBI mandates that angel investors should meet accreditation norms & invest via registered angel funds,” said Shailesh Vickram Singh, founder of Climate Angels.

Founded by veteran venture capitalists and investors–Singh, Pravin Gandhi, Paula Mariwala, Nipun Sahni and Vijay Shekhar Sharma, Climate Angels backs startups working in clean energy, mobility, water, food and other allied sectors.

“In 2021, 29 new climate tech unicorns emerged in the world and prior to 2021, there were only 14 unicorns. In India, climate tech is nascent however in June this year, two transactions worth $25 Mn were recorded in electric mobility,” Singh added.

Interestingly, Climate Angels’ founding team holds diverse experience. Besides leading the VC firm, most of its founders are also full-time entrepreneurs and investors. Pravin Gandhi and Paula Mariwala are leading Seedfund and Stanford Angles respectively while Nipun Sahni is currently acting as a partner at Apollo Global. Meanwhile, Vijay Shekhar Sharma is the founder of the listed fintech giant Paytm.

The climate tech-focused syndicates have been launched at a time when the Modi-led government aims to cut 45% carbon emissions by 2030.

Earlier, the PM also announced that the country would achieve zero greenhouse gas emissions by 2070.

To realise this target, the Centre is proactively supporting the cleantech sector, particularly electric mobility. In 2021, the Centre also launched an INR 18,100 Cr worth PLI scheme for manufacturing EV battery cells.

In March this year, Gujarat’s climate change department also set up a INR 500 Cr fund for climate tech startups for a period of five years. The fund will primarily back student startups and startup founders that are below the age of 35 years and are not students.