ArcTern Ventures raises $200 mln for second cleantech fund

ArcTern Ventures, a Canadian clean technology venture capital firm, has secured C$200 million for its sophomore fund.

ArcTern Ventures, a Canadian clean technology venture capital firm, has secured C$200 million for its second fund. New limited partners, including Investissement Québec, Nysnø Climate Investments and Ottawa’s Venture Capital Catalyst Initiative, join existing investors, including BDC, Equinor, OMERS, Suncor and TD Bank Group. Founded in 2012 by Managing Partners Murray McCaig and Tom Rand, ArcTern invests in companies addressing climate change and sustainability.

PRESS RELEASE

ArcTern Ventures Continues to Attract Leading Investors Securing $200 million in Commitments

Investor commitment signals growing support for breakthrough technologies solving climate change issues as cleantech begins to disrupt virtually every industry

TORONTO, Jan. 20, 2020 /CNW/ – ArcTern Ventures, a Toronto-based venture capital firm investing globally in breakthrough clean technology companies addressing climate change and sustainability, announced today that they have secured $200 million in commitments for its Fund II, including over $45 million from foreign investors.

“We continue to see strong interest and demand from institutional investors and family offices in North America and Europe for ArcTern’s planet-positive investment strategy,” noted Murray McCaig, managing partner at ArcTern. New major investors include Nysno (a Norwegian fund), Investissement Québec, and the federal government Venture Capital Catalyst Initiative that closed out the fund with a $10 million commitment. They join existing investors OMERS, Equinor, TD Bank Group, Suncor, BDC, a leading Canadian pension fund, family offices in North America and Europe, and others.

“We evaluated a number of North American venture funds investing in climate and sustainability technologies,” outlined Siri Kalvig, CEO at Nysnø Climate Investments. “We had a great connection with the ArcTern team and felt they have developed a strong understanding of how to drive value creation in this space combining deep technology focus with a hands-on approach and financial rigour. We are also excited about their presence in Norway, which we believe will be a strong hub to identify the best deals in Europe.”

Today’s announcement confirms ArcTern Fund II as the largest cleantech venture fund in Canada and among the leading cleantech venture funds in the world. ArcTern’s managing partners, Murray McCaig and Tom Rand, co-founded ArcTern Ventures in 2012 with the view that the accelerating global transition to a greener economy was inevitable, bringing significant investment opportunity as it disrupts virtually all industries.

“We are proud to support ArcTern Ventures with its growth,” stated Guy LeBlanc, President and CEO of Investissement Québec. “Not only will this partnership allow us to showcase the cleantech industry’s know-how and capacity for innovation in Québec and abroad, it’s yet another way in which the Corporation is promoting the shift to a green, low-carbon economy. In 2020, it has become abundantly clear that businesses turning to green, innovative technologies are the ones that will stand out from the competition and get a head start in developing their business.”

ArcTern analysis shows a multi-trillion-dollar opportunity within the cleantech industry, particularly in cleantech innovation, and strong potential to generate both outsized financial returns and a positive environmental impact.

“By securing $200 million from national and international investors, ArcTern will be able to invest in innovative, scaling companies in Canada’s cleantech sector. Canadian cleantech companies are global leaders working to have positive environmental impacts, and our strategies are positioning them to export these benefits to the rest of the world.”
– The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade

“The global cleantech sector is growing and innovating at such a rapid pace that it’s providing more investment opportunities than we ever thought possible only a few years ago,” explained McCaig. Rand, a leading global climate solution advocate, added that “Cleantech investing is a team sport, which is why we are excited to have united such a powerful and forward-thinking group of investor partners. Our leadership, coupled with their capital commitments, expertise and global connections will help drive the growth of our investee companies with the goal of transforming them into global market leaders.”

About ArcTern Ventures
ArcTern Ventures is a Toronto-based venture capital firm investing globally in breakthrough clean technology growth companies addressing climate change and sustainability. ArcTern was founded by Murray McCaig and Tom Rand around the belief that the accelerating transition to a greener economy will disrupt all industries and present a multi-trillion dollar opportunity for both outsized financial returns and positive environmental impact. For more information, please visit www.arcternventures.com.

About Nysnø Climate Investments
Nysnø Climate Investments is a Norwegian state-owned venture fund based in Stavanger that invests in companies and funds with profitable and smart solutions to climate change. Nysnø Climate Investments was established in 2017 and is owned by the Norwegian Ministry of Trade, Industry & Fisheries. For more information see www.nysnoinvest.no/en

About Investissement Québec
Investissement Québec’s mission is to promote the growth of investment in Québec, thereby contributing to economic development and job creation in all regions. The Corporation provides companies with a full range of financial solutions, including loans, loan guarantees and equity investment, to support them at all stages of their development. In addition, it is responsible for the administration of tax measures and the prospecting of foreign investments.

About Venture Capital Catalyst Initiative
Venture Capital Catalyst Initiative (VCCI) is a $450 million Federal government program backed by the Government of Canada to strengthen the local venture capital ecosystem and help Canadian companies scale. VCCI Stream 1 invested in large funds-of-funds that will support Canadian VC fund managers, while VCCI Stream 2 invested in emerging and diverse managers, underserved regions and sectors, and alternative fund structures. VCCI Stream 3 invested in VC funds investing primarily in clean technology firms. Read more: http://www.ic.gc.ca/eic/site/061.nsf/eng/h_03052.html

For further information: Lee-Tal Hatuka, ArcTern Ventures, E: lee-tal@arcternventures.com