ArcTern Ventures, a Canadian early-stage venture capital firm focused on the clean technology sector, has initially closed its second fund at $60 million.
ArcTern Ventures Fund II, targeted to raise up to $150 million, was anchored in its first close with commitments from Ontario Municipal Employees Retirement System (OMERS) and Equinor ASA, formerly Statoil, a Norwegian energy company.
Founded in 2012 by Managing Partners Murray McCaig and Tom Rand, ArcTern invests across six core clean technology sub-sectors: renewable energy, energy use and storage, circular economy, advanced manufacturing and materials, mobility, and agri-technology.
Toronto-based ArcTern works in partnership with Canadian innovation hub and startup accelerator MaRS Discovery District.
Photo (left to right): Tom Rand and Murray McCaig, co-founders and managing partners of ArcTern Ventures.
ArcTern Ventures announces first close of second cleantech fund with OMERS and Equinor
TORONTO, September , 2018 – ArcTern Ventures, a global, early-stage venture capital firm focused on breakthrough clean technologies, is pleased to announce a first closing of Fund II, with new partners OMERS and Equinor (formerly Statoil) as anchor investors. ArcTern raised CDN$60 million of its target CDN$100 million and expects to hold a final closing in the near future with a maximum target of CDN$150 million.
In Canada, ArcTern works closely with MaRS Discovery District, North America’s largest urban innovation hub and a leader in startup acceleration, to find the highest-potential companies in cleantech. “We are deeply committed to cleantech and believe that Canada, with its leading companies in this sector, has a high concentration of very attractive opportunities for investors to tap into,” says Yung Wu, MaRS CEO. “Firms like ArcTern understand how to identify great potential and support them to achieve global success.”
“We are in the early stages of a multi-decadal global transition to a low-carbon economy — it will bring enormous opportunity for both profit and positive impact,” says Paul Manias, Managing Director of OMERS Platform Investments. “We evaluated a number of top cleantech funds and decided to make ArcTern our first partnership. ArcTern’s strong, entrepreneurial team, early-stage focus in many cleantech subsectors, and strong relationship with MaRS, made it stand out in the cleantech space.”
Gareth Burns, Equinor’s vice president and managing director, adds: “As the current energy transition continues to progress, Equinor Energy Ventures is investing in attractive and ambitious growth companies in renewable energy. Equinor, formerly Statoil, chose ArcTern as a North American partner because of its unmatched access to the early-stage cleantech startup ecosystem.”
Murray McCaig and Tom Rand co-founded ArcTern Ventures in 2012, then at a low point for cleantech venture capital, with a unique thesis on how to succeed in the sector. “We’ve developed an investment model specifically tuned to this sector, which is enabling us to accelerate the commercialization and growth process for emerging clean technology companies,” says McCaig.
Rand, a well-known climate solution advocate, believes that ArcTern can play a strong role in both helping the planet and advancing the innovation economy. “If you solve a big problem, you get a big reward, and climate change is one of the greatest challenges we face,” he says. “Just as the internet is no longer a sector, but the foundation of our digital economy, cleantech is the foundation of a new, low-carbon economy, pervasive across all industries and asset classes.”
About ArcTern Ventures
ArcTern Ventures is a global, early-stage venture capital firm investing in breakthrough clean technologies. The firm aims to generate outsized financial returns and positive environmental impact. ArcTern invests across six core cleantech subsectors, including: renewable energy; energy use and storage; circular economy; advanced manufacturing and materials; mobility; and agritech. For more information, please visit www.arcternventures.com.
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with more than $95 billion in net assets, as at December 31, 2017. It invests and administers pensions for almost half a million members from municipalities, school boards, emergency services and local agencies across Ontario. OMERS has employees in Toronto and other major cities across North America, the U.K., Europe, Asia and Australia – originating and managing a diversified portfolio of investments in public markets, private equity, infrastructure and real estate.
Equinor, formerly Statoil, is a Norway based broad energy company with operations in more than 30 countries. As part of Equinor’s strategy to actively complement its oil and gas portfolio with profitable renewable energy sources, the company has developed a sizeable offshore wind portfolio and is also investing in growth companies in renewable energy.
About Equinor Energy Ventures
Equinor Energy Ventures is one of the world’s largest corporate venture funds dedicated to investing in attractive and ambitious growth companies in renewable energy. The fund has built a portfolio of investments in companies and funds since it was established in February 2016. The aim of the investments is to help the companies grow, become commercial successes and deliver technologies and business opportunities that can have a relevance to Equinor in the future.
For further information, contact Murray McCaig at [email protected]
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