Bill Gates-backed climate VC Breakthrough Energy Ventures has gathered $839 million in its effort to raise the firm’s third flagship fund, according to a regulatory filing, making it the largest climate fund raised so far this year.
Kirkland, Wash.-based Breakthrough launched its BEV III fund in July 2023, having closed its 2021 vintage second fund at $1 billion.
The final target amount for the fund close is unclear. Breakthrough didn’t respond to a request for comment.
LPs have indicated a bullish stance on early-stage climate funds even as they have simultaneously retreated from other sectors in venture. In the first half of 2024, climate dedicated funds attracted nearly 5% of all LP capital commitments globally, according to PitchBook’s 2024 Climate Tech Funds Report.
But early stage climate investing comes with significant risks, notably the long time horizon for exits and the significant capital required to scale novel hardware technologies.
Founded in 2015 by Gates, Breakthrough was one of the first VC funds dedicated solely to climate bets. That unique approach, and Gates’ connections in the climate world, catapulted Breakthrough into the ranks of leading early-stage investors just as climate dealmaking took off in 2020.
Breakthrough has made early bets on several now-prominent climate startups. It led Boston Metal‘s Series A at a $55 million valuation (last valued in 2023 at $860 million), Redwood Materials’ Series B at a $217 million valuation (last valued in 2023 at $5.25 billion) and Pivot Bio‘s Series B at a $200 million valuation (last valued in 2021 at $1.7 billion).
