ArcTern Ventures Announces USD $335 Million Fund III Focused on Global Decarbonization

With significant institutional investor backing, Fund III closes at more than double the size of the previous fund and will deliver significant greenhouse gas emissions abatement.

January 22, 2024 02:07 PM Eastern Standard Time

TORONTO–(BUSINESS WIRE)–ArcTern Ventures (ArcTern), a Toronto-based venture capital firm with offices in San Francisco and Oslo investing globally in breakthrough technology companies addressing climate change and sustainability, today announced $335 million in commitments for Fund III, including securing new investments from flagship limited partners including TD Bank Group, Allianz, Church Pension Group, OPTrust, Credit Suisse Asset Management and other large institutional investors. Having originally targeted a close at $300 million, Fund III is now over-subscribed, reinforcing ArcTern’s position as one of the largest dedicated climate tech venture funds in the world.

Primarily focused on the North American and European markets, ArcTern is committed to deploying its funds in ways that maximize the abatement of greenhouse gas (GHG) emissions over the lifespan of the fund. ArcTern conducts thorough evaluations of all potential environmental impacts before committing to investments. Only early growth-stage companies — particularly those undergoing a Series A or B funding round — with the greatest potential for GHG avoidance are selected to become part of ArcTern’s investment portfolio. To ensure accountability, ArcTern’s Fund III is registered as an Article 9 fund under the European Union’s Sustainable Finance Disclosure Regulations and will be measured against a set of climate impact criteria to quantify and verify investments’ offset emissions.

“We are investing across North America and Europe in mission-driven founders who understand that if you’re not rapidly scaling revenue, you’re not having climate impact, and the world needs scaleable decarbonization solutions today, not decades into the future,” said Murray McCaig, Co-Founder and Managing Partner at Arctern Ventures.

“Spanning diverse geographies and industry verticals, we keep a close eye on the world’s most promising climate startups to ensure that we’re maximizing the utility of our funds,” said Marc Faucher, Managing Partner at ArcTern Ventures. “As former founders and operators ourselves, we partner and collaborate with bold and innovative startup teams that align with our impact-driven mission.”

“We are pleased to help support entrepreneurs on the front line of energy innovation through our investment in ArcTern Fund III,” said Drew MacIntyre, Vice Chair, TD Securities. “This investment forms part of TD Securities’ Principal Investing Strategy, established in September 2019, and is aligned with the Bank’s desire to support those who are building a more sustainable tomorrow.”

Fund III will invest in technology companies that develop and innovate solutions in renewable energy, clean mobility, circular economy, sustainable food, and agriculture and industrial decarbonization.

About ArcTern Ventures:

ArcTern Ventures is a venture capital firm obsessed with helping solve the climate crisis and rethinking sustainability. ArcTern, based in Toronto with offices in Oslo and San Francisco, invests globally in breakthrough technology companies solving climate change and sustainability – we call it #earthtech. The fund was founded in 2012 on the premise that accelerating the transition to a carbon-neutral economy will disrupt all industries and present an unprecedented opportunity for outsized financial returns. Solving our planet’s biggest problems will lead to big rewards—for companies, their investors, and of course, Mother Earth.

Isaac Steinmetz
Antenna Group for ArcTern Ventures