The Bill Gates fund is looking to invest in 40 to 50 startups dedicated to clean tech. BEV wants to invest in startups focusing on “tougher climate challenges.” (Image credit: BEV)
Breakthrough Energy Ventures (BEV), Bill Gates’ cleantech venture capital fund, recently raised $1 billion for a second round of investments. Previously, they invested in 45 startups with its first billion, which included investments in energy storage, lithium mining, nuclear fusion, and hydropower turbines. The next round of investments will be spread between 40 and 50 startups focusing on “tougher climate challenges” in greener steel and cement, long-haul transport, direct air capture and hydrogen.
So, what exactly is BEV? Launched in 2016, BEV invests in cleantech startups that address environmental issues, such as climate change and sustainability. But unlike most venture capitalists that expect returns in just five years, BEV works on a “patient” fund that runs for 20 years. To avoid the mistakes VCs made during the first cleantech boom, and the company also expands what it invests in to include agriculture, buildings, transportation, and manufacturing technologies.
Startups looking for BEV’s support have to meet rigorous criteria, such as showing their path to scaling up that would cut at least 500 million metrics tons of annual CO2 emissions. In addition, BEV also has a team of academics, entrepreneurs, former government officials, and bankers to evaluate the feasibility and potential of new technologies.
As BEV expands its portfolio, it plans on focusing on how to bring innovations to consumers. “Many of our companies are focused on sectors where policy and regulation play an important role in shaping markets,” said Rodi Guidero, BEV’s executive director. “We need to fully understand these factors and the challenges and opportunities they bring to our companies.”
If there are certain areas that don’t provide enough investable startups, BEV also plans to launch its own companies relying on its own technical expertise. “This model has already been successfully executed more than once, but the companies have yet to be disclosed,” said Eric Toone, BEV’s technical lead.
Along with BEV, Bill Gates also has the Bill and Melinda Gates Foundation, a private foundation that makes charitable donations to enhance healthcare and reduce extreme poverty around the world. In 2019, their total grant payments since inception came out to $54.8 billion. While they contribute to many worthy causes, such as HIV treatments, curing malaria, and financial services for the poor, they’ve had the most success with their vaccination distribution. Since 1990, they have saved 122 million children’s lives and now 86 percent of children receive basic vaccines worldwide.
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