Sustainable Ventures raises third Accelerator fund

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Sustainable Ventures

21 January 2020

Sustainable Ventures raises third Accelerator fund

Sustainable Ventures have raised a third Accelerator Fund. The £1m fund will be used to continue Sustainable Ventures track record in making pre-seed investments into the UK’s most promising Sustainability start-ups.

This is Sustainable Ventures’ third fund having invested in 15 companies through two previous accelerator funds. Sustainable Ventures invests in companies whose core mission addresses the challenges of climate change or resources scarcity with commercial solutions. Each accelerator fund focuses on creating a diversified portfolio of high growth sustainability start-ups across future energy, agritech & food, mobility, building tech and circular economy.

The uniqueness of the fund structure is that the Limited Partners (LPs) of the fund are crowdfunding investors, including angel investors, HNWIs and retail investors. Investments are from as little as £100 and taking advantage of SEIS/EIS tax relief. Sustainable Accelerator screens, selects and invests in the most promising sustainability start-ups it then supports these start-ups on their growth and funding journey.  For the investors this delivers a carefully selected and supported portfolio of pre-seed investments diversifying risk and capturing value prior to growth inflection points.

One of the angel investors commented on the strength of the Sustainable Ventures proposition:” I found the Sustainable Ventures investment team as welcoming and friendly as they were knowledgeable and passionate about picking the right businesses. For me the main takeaway related to the benefit of having a specialist intermediary like them to screen very early-stage businesses, far better than trying to rely on a crowdfunding website.”

Early movers in the sustainability space

Sustainable Ventures has set out to empower the next generation of businesses, redefining the way we consume energy, manage waste, clean air, and apply smart resource technology.

For its accelerator investments, Sustainable Ventures looks for UK companies whose core activities address the challenge of climate change and resource efficiency and participates in pre-seed rounds with individual investments of up to £150,000. Sustainable Accelerator pairs these pre-seed investments with a high touch one-year support programme of expert mentorship, network introductions, fundraising support, and growth services to the cohort designed to reduce failure rates and increase investor returns.

“Our success in the venture development space with E-car Club and Powervault over the last 8 years has exemplified how sustainability has moved from niche to mainstream, as resource economics fundamentally change how industries work”- says Andrew Wordsworth, co-founder and CEO of Sustainable Ventures. The number of sustainable companies has grown massively in the past couple of years based on several surveys which are in line with customer sentiment. “We can feel the impact of this new trend in our dealflow which has grown dramatically since we started” he adds.

Since the launch of the first accelerator in 2017, Sustainable Ventures has demonstrated an average uplift for their portfolio companies’ of 4x based on the valuation of follow-on funding rounds. In addition, they have helped to secure ~£15m in further funding for their seed-stage companies. Following the success of three –pre-seed funds, Sustainable Ventures plans to raise larger funds to provide later stage capital to continue to support high growth ventures.

Impact portfolio

Sustainable Ventures is committed to contributing to the UN Sustainable Goals (SDGs). They invest exclusively in companies with sustainability at their core – creating a diverse impact portfolio. Their portfolio companies are already making a meaningful contribution to 14 out of 17 of the SDGs with strongest contributions across Climate Action, Responsible Consumption and Industry, Innovation, and Infrastructure.

Contact

Sustainable Accelerator 3 is now making investments. Early-stage sustainability companies raising pre-seed funds (SEIS/EIS eligible) should send their investment pitch pack to contact@sustainableaccelerator.co.uk

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