(Bloomberg) —
Venture capital firm Congruent Ventures raised $275 million from investors including California State Teachers’ Retirement System to support early-stage companies developing innovative decarbonization technologies.
Other investors in Congruent’s third flagship fund include Grantham Foundation and the University of California, the San Francisco-based company said in a statement Thursday.
The funding brings Congruent’s total assets under management to more than $1 billion and shows investors’ appetite for early-stage startups. It comes as equity markets are facing headwinds, notably the S&P Global Clean Energy Index’s $30 billion rout in the six months through November 27. Potential cleantech investors may be drawn to venture firms like Congruent that have experience in the industry, according to co-founder Abe Yokell.
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“As the industry matures a bit, we believe there’s just a massive tidal wave of limited partners’ interest to deploy into decarbonization solutions,” Yokell said in an interview. “But they’re not going to do it in a way that is irresponsible.”
Congruent plans to start deploying the funds in early 2024 to about 30 recipients over three to four years. The company has backed 53 companies since its inception in 2017, ranging from Bonsai Robotics, which is seeking to add automation to crop harvesting, and Lydian Labs, a supplier of sustainable fuels.
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