Climactic Launches First Fund Amid Looming M&A Boom in Climate Technology
Two years ago, when the pandemic was still raging, Raj Kapoor and Josh Felser began exploring investments in climate tech startups. They called their operation Climactic, initially using their own money to make bets. Both are experienced founders, operators, and investors but were new to focusing on this sector. After testing the waters, they must have seen some promising results because now they’re diving in headfirst.
A New Era for Climate Tech Investors
The firm has announced that it has closed a $65 million inaugural fund, which will be used to back founders starting climate tech software companies. Both Kapoor and Felser have a long history as investors – Felser co-founded Freestyle Capital, while Kapoor spent seven years as a managing director at Mayfield Fund. They’ve also founded and sold their own software startups.
It’s surprising it took the two so long to collaborate; their resumes are remarkably similar. Felser founded Spinner in 1997 (sold to AOL) and Crackle in 2004 (sold to Sony). He also started the #Climate nonprofit in 2010 and has been a vocal advocate for climate action. Kapoor, on the other hand, co-founded a company called Saba Software and served as its CEO from 1995 to 2001.
A Different Perspective on Climate Tech
With their backgrounds in tech, Felser and Kapoor bring a unique perspective to climate tech investing. Many firms have been focusing on deep tech – risky, hardware-focused big swings that venture capital was known for in its early days. Instead, Climactic is focusing on software, which has low capital requirements and can be scaled quickly.
Both Kapoor and Felser are grateful that other firms are tackling deep tech – the technology is desperately needed. However, they know their strengths lie in software, so why not bring those skills to climate tech? Why not marry venture capital’s favorite business model with its biggest opportunity?
The Future of Climate Tech Investing
Climactic’s $65 million fund will be used to support startups that are developing innovative solutions to address the climate crisis. With their expertise in software and experience in investing, Felser and Kapoor are well-positioned to make a big impact on the climate tech landscape.
Their focus on software is a welcome change from the deep tech-focused approach of many other firms. By scaling quickly and efficiently, Climactic’s portfolio companies will be able to bring their solutions to market faster, making a real difference in the fight against climate change.
A New Era for Climate Tech
Climactic’s entry into the climate tech investing scene marks a new era for the industry. With their unique perspective and expertise, they are poised to make a significant impact on the sector. As the world continues to grapple with the challenges of climate change, Climactic is well-positioned to play a key role in finding innovative solutions.
About the Authors
Tim De Chant is a senior climate reporter at TechCrunch. He has written for a wide range of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, where he was founding editor. De Chant is also a lecturer in MIT’s Graduate Program in Science Writing and was awarded a Knight Science Journalism Fellowship at MIT in 2018.
Related Stories
- Climate Tech Funding Reaches New Heights: With the rise of climate tech investing, startups are receiving more funding than ever before to develop innovative solutions to address the climate crisis.
- The Future of Climate Tech: As the world continues to grapple with the challenges of climate change, climate tech is becoming an increasingly important sector. Climactic’s entry into the market marks a new era for climate tech investing.
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