ETF Partners' Patrick Sheehan Raises €284 Million Fund for Software-Centric Climate Solutions
ETF Partners' Patrick Sheehan Raises €284 Million Fund for Software-Centric Climate Solutions
Patrick Sheehan, a climate investor at ETF Partners, has raised a new €284 million fund, focusing on software-centric companies that prioritize scalable solutions to significantly reduce emissions within a 10-year venture capital window. Among the startups receiving attention is Deepsea, which utilizes AI to enhance maritime shipping operations, resulting in a 10% to 15% reduction in fuel use. ETF Partners aims at investing in European startups that address sustainability and operate within the energy, transportation, connectivity, consumer, and food and agriculture sectors, benefitting from the continent's favorable government policies and strong public belief in climate change.
Key Takeaways
- Patrick Sheehan prioritizes software-centric companies for climate change solutions.
- ETF Partners has raised a new €284 million fund, emphasizing the need for scalable solutions.
- There is an increasing openness among limited partners towards climate tech since 2018.
- Deepsea uses AI to optimize maritime shipping operations, showcasing the potential of software in emission reduction.
- ETF Partners focuses on European startups due to favorable government policies and public trust in climate change awareness.
- The investment focus is shifting towards sustainability-driven companies, favoring those with revenue scaling potential over deep tech startups.
Analysis
Sheehan's fund marks a noteworthy pivot towards software-centric climate solutions, underlining the urgency for scalable emission reduction strategies within a VC's 10-year timeline. This shift aligns with the global climate change focus, particularly benefiting regions and organizations with a dedicated environmental agenda, such as the EU. The emphasis on software solutions may pose challenges for deep-tech companies seeking funding, although it presents significant opportunities for sustainability-focused startups like Deepsea, contributing to the accelerated reduction of greenhouse gas emissions.
Did You Know?
- Software-centric companies: Businesses focused on delivering software-based solutions for emission reduction and sustainability practices.
- Deep-tech solutions: Innovative and disruptive technologies driven by scientific or engineering breakthroughs to combat climate change.
- Limited partners: Investors committing capital to a fund, reflecting increasing openness to climate tech in recent years.