The Green Dream Team

VCs Unite for Climate Tech Revolution, Capria Raises $100 Million to Bridge the Tech Divide, and a Startupā€™s New Funding Launches it Into Orbit.

Author

Adam from VC Brags
April 26, 2023

Welcome Shareholders,

In this daily edition of the Brags Newsletter, weā€™ll cover how VCs are rallying together to back sustainable tech startups. Also, a Venture Firm looks to fuel innovation in the global south with its $100 million fund, and a Rocket Engine Innovator Gets a Boost with a new Funding Round.

So sit back, grab a snack, and enjoy!

Venture Today šŸ‘

  • A coalition of VCs managing over $62 billion in capital including prominent firms like Tiger Global and Union Square Ventures have created a new alliance to advance climate tech.

The Venture Climate Alliance (VCA) comprises over 20 climate tech and generalist funds, and aims to boost the VC industry's commitment to climate tech. Other prominent VCA members include Climate VCs World Fund, 2150, and Prelude Venture, with the participating investment firms collectively managing $62.3 billion in assets.

The alliance provides guidelines for VC members and their portfolio companies to achieve net-zero emissions by 2050, including decarbonizing operations through emission-free data centers, energy-efficient software, and low-carbon supply chain alternatives. Generalist VC firms must regularly assess their carbon footprint and align early-stage investments with net-zero objectives, while climate tech-focused firms in the alliance must ensure their investments have the potential to reduce CO2 emissions by at least 100 megatons. While there have been other initiatives in the venture landscape to advance decarbonization, the VCA takes it a step further by being approved by the United Nations as part of its Race to Zero campaign aimed at mobilizing climate action.

Whoā€™s Raising?

  • Seattle-based Venture Capital Firm Capria raised $100 million for its new fund to invest in 20-25 tech startups across India, Southeast Asia, Latin America, the Middle East, and Africa

The fund has seen commitments from limited partners like OIP Investment Trust and Gates Ventures. It also saw participation from foundations, individuals, and family offices such as Crystal Springs Foundation, Sall Family Foundation, Brakeman Family Trust, and two Pioneer Square Labs founders. The fund aims to support founders and startups in generative AI and climate technologies and has already made investments in startups across Mexico, Brazil, Nigeria, and Egypt, including Kueski (fintech), Agrofy (agritech), MAX (mobility), and Paymob (fintech).

With an average initial investment of $2-3 million and additional capital for follow-on investments, Capria will primarily target overseas companies but may support a Seattle-based firm if its primary markets lie in the Global South. Capria Ventures manages over $200 million in assets with offices in Seattle, Bengaluru, Nairobi, and Washington DC. Having raised a $57 million fund in June 2020, Capria is connected to India-focused Unitus, an early-stage VC firm, and employs 18 people worldwide, including three in Seattle.

Startup of the Day

  • Rocket engine startup Ursa Major secured $100 million in a Series D round, with participation from investors including BlackRock and Space Capital.

Ursa Major closed the round in October 2022 but did not disclose it publicly until it was reported yesterday. The new round follows an $85 million Series C raised less than a year ago, bringing the company's total funds raised to around $234 million, valuing the company at $400 million pre-money. Ursa is developing two engines, the 5,000-pound Hadley fueled by liquid oxygen and kerosene, and the 10x more powerful 50,000-pound thrust Ripley engine.

Rather than embracing the historically prevalent vertical integration model in aerospace, the company is concentrating on perfecting only the rocket engine, one of the trickiest components to develop in a rocket. Ursa's clientele features small launch firms like Astra, Phantom Space, and Stratolaunch, and it has also landed an engine delivery contract with the US Air Force.

Fresh Finds

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Memes and Other Things

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