In 2021, Active Impact Investments closed an oversubscribed fund at $54 million.
It was the Vancouver-based Certified B Corp’s second fund, and like the first carried a mission to support environmental sustainability through profitable investment.
In 2023, Active Impact is making solid progress toward its third fund.
Already Canada’s largest climate-tech seed fund, Active this month announced that it has raised more than $70M in commitments for its third fund, with plans to raise even more capital next year.
The company hopes to raise a total of $120M for the fund by the end of 2024.
“Many funds aren’t raising right now because of the difficult market and the economic pinch many are feeling,” says Mike Winterfield, Founder of Active Impact Investments. “Our ability to fundraise in these tough conditions is beneficial for our investors since it helps us get access to more deals at better valuations—and from the founders’ perspective, it makes a bleak environment more hospitable for growth.”
The fund welcomes new investors, including Northleaf Capital Partners, Co-operators Corporate Venture Capital Fund, and Deloitte Ventures as Active’s current portfolio works toward a goal of mitigating 1,000,000 tonnes of CO2e by the end of 2023.
“As we increase our exposure to the sustainability and impact sector, we believe their focus on climate technologies can deliver attractive returns while having a positive impact on our planet,” stated Ian Carew, Managing Director at Northleaf Capital. “We are excited to have selected Active Impact as a seed-stage partner for our portfolio.”
“We see climate change as a direct and imminent threat to our ability to deliver on our purpose,” adds Daniel Sinclair, Vice President of Corporate Development & Head of Co-operators Corporate Venture Capital. “We are excited to collaborate with a partner like Active Impact that prioritizes resilience alongside profitability and is driving climate action through strategies we support in our other investments and operations like circularity and sustainable food systems.”
“The climate doesn’t care that markets are down,” Winterfield explains. “Climate change is accelerating faster than ever and continuing to fund solutions is both necessary, and a huge wealth creation opportunity.”
The third fund will invest in early-stage, private companies across North America that are “capable of achieving venture scale and profitability while solving urgent environmental issues,” targeting investments in around 20 firms.
“We’re actively searching for 20 new startups that have developed technology that reduce greenhouse gas emissions and improve society’s sustainability in the areas of: circular and shared economy, clean energy and transportation, infrastructure and carbon solutions, and sustainable food and water,” stated Tom Boddez, General Partner, Active Impact Investments. “We’re excited to double down on post investment support to ensure our portfolio companies access the best talent and build repeatable systems for scalable sales.”
Founded in 2018, Active has invested in 31 companies across North America and has exited three via acquisitions, with a fourth exit pending.
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