Seattle Tech Vet Launches Climate Venture Capital Fund
Seattle tech veteran Ben Eidelson is making a bold move to tackle climate change. Eidelson, who has previously sold startups to tech giants Google and Stripe, has launched a new venture capital fund called Stepchange. This fund is focused on backing software-driven solutions for accelerating the deployment of carbon-cutting technologies. Stepchange has already invested in four startups and is on track to close a $3 million inaugural fund. The fund aims to distribute the dollars to 20 or more startups within a year to 18 months, with the goal of quickly seeing how the investments play out and learning what successful founders need next.
Stepchange Aims to Accelerate Deployment of Carbon Cutting Technologies
Stepchange is determined to be a catalyst in the race against climate change. The fund aims to accelerate the deployment of carbon-cutting technologies by providing financial support and sharing the founder experience and software product expertise of Ben Eidelson. The fund is particularly interested in low-carbon technologies, such as electric vehicles, bikes, heat pumps, and community solar. Stepchange also seeks to expand the climate tech installation workforce and develop tools to assist government agencies working in sustainability. It is driven by the urgency to slash carbon emissions from every sector of the economy.
Rapid Pace of Investing to Drive Climate Startup Success
Stepchange is not wasting any time in making an impact. The fund plans to invest rapidly, distributing its capital to 20 or more startups within a relatively short timeframe. This quick pace of investing allows Stepchange to assess the success of its bets and understand the needs of successful founders. Ben Eidelson’s impatience to address the climate crisis is reflected in the fund’s proactive approach. By investing swiftly, Stepchange aims to capture the opportunity of the present moment and make a significant difference in the fight against climate change.
Stepchange Attracts Impressive Cohort of Investment Partners
Despite the decline in venture capital investments in the climate tech sector last year, Stepchange has managed to attract a notable group of investment partners and advisors. The fund boasts key venture partners Arthur Shwab and Anay Shah. It also has more than 30 limited partners, including Bain Capital, Anish Acharya of Andreessen Horowitz, and David Lieb of Y Combinator. Additionally, Stepchange has secured prominent advisors from companies like Google and Airbnb. With this impressive cohort, Stepchange brings together expertise, resources, and networks to support climate startups.
Stepchange’s First Investments Focus on Clean Energy and Decarbonization
Stepchange has wasted no time in investing in startups with promising solutions for clean energy and decarbonization. Its first four publicly announced investments are Bayou Energy, Itselectric, Rhizome, and Line.Build. Bayou Energy, based in Seattle, uses customer utility data to support clean energy installations. Itselectric, a New York startup, is developing technology for installing public curbside EV chargers on private property. Rhizome, headquartered in Washington, D.C., works with electric utilities to enhance grid resiliency using AI. Line.Build, a startup with Seattle-area connections, is building software to connect contractors with decarbonization incentives.
Stepchange’s investments reflect its commitment to driving meaningful change in the climate tech space and contributing to the global efforts to combat climate change. The fund’s focus on clean energy, decarbonization, and innovative technologies positions it as a significant player in the fight against climate change.
Analyst comment
Positive news. Market outlook: The launch of Stepchange, a venture capital fund focused on backing carbon-cutting technologies, will drive innovation and accelerate the deployment of clean energy solutions. Its rapid pace of investing and impressive cohort of partners and advisors indicate strong potential for success in the climate tech sector.
