Investors mull locking arms to back high-risk climate tech
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Aïda Amer/Axios
Top climate investors are aligning on an unusual plan to scale high-risk startups after a private coastal retreat sparked a push for joint action.
Why it matters: The investors — including Bill Gates, John Arnold and Vinod Khosla — hope that synchronized investment can break the logjam for deploying new energy projects.
- Cautious unity emerged at the retreat in the face of cooling political and economic momentum for climate action.
The intrigue: The event — dubbed All Aboard — was hosted by former TED leader Chris Anderson at the Ritz-Carlton in Half Moon Bay, California, in late September.
- Attendees included a curated group of entrepreneurs and roughly 150 high-profile investors, including Gates, Arnold Ventures co-founder Arnold and Khosla Ventures founder Khosla.
- The gathering followed the Chatham House Rule, meaning information could only be shared without attribution (unless a speaker gave approval). Axios was invited to attend and interview attendees.
Twenty startups — culled from hundreds through a months-long nomination process —made the final cut to present:
- Energy tech and storage: Form Energy, Energy Dome, Antora
- AI-related: Positron and Panthalassa
- Geothermal: Zanskar, Sage Geosystems, Mazama
- Carbon + materials: Dioxycle, Fortera, Sublime Systems, Brimstone, Hertha Metals
- Recycling + resources: Ascend Elements, Cyclic Materials, Ceibo
- Green fuels: Verdagy (hydrogen), OceanWings (wind-powered ships)
- Others: Greenlight Biosciences (agriculture), Type One Energy (fusion)
"We are arguing that the very best returns on the planet will be in these companies," Anderson said.
- The startups represent the types of bets that the world's highest-profile investors are making.
State of play: The convening is part of a broader corporate response to kick-start climate investment.
- Related endeavors include a new matching fund and a surrounding coalition of 14 investment firms, including Gates' Breakthrough Energy Ventures and Energy Impact Partners.
- All are aimed at focusing investments on a limited number of startups to generate enough capital to build expensive first-of-their-kind commercial-scale projects.
- "With so many companies ready for deployment, it's critical that investors come together, as we did at All Aboard, to find and fund the entrepreneurs building the next generation of energy and infrastructure solutions," said Rodi Guidero, managing partner at Breakthrough Energy Ventures, in a statement after the convening.
How it works: The fund aims to "anoint" the strongest startups by matching the total amount of investments made by at least three or more fellow coalition members.
- At least two of those must be new to that investment, said fund lead Stan Miranda, a veteran private equity executive.
- "That will help accelerate commercialization and winnow down what's otherwise a crowded space of different tech startups," he said in an interview after the gathering.
Catch up fast: The All Aboard Fund has an initial raise goal of $300 million, which Anderson concedes is far less than what's needed. He hopes to raise billions in future funds.
Follow the money: From the stage, Arnold pledged $50 million to the fund. He confirmed it post-event, calling it an "interesting concept" and a way to capitalize on smart due diligence.
Reality check: Clean tech has a history of hype — and heartbreak. Despite billions invested over the past 15 years, exits into public markets (or even acquisitions) have been scarce.
- Political tailwinds are increasingly shifting — especially under President Trump, who has dialed back key climate policies, and with investors' exuberance over AI.
Inside the room: The vibe at the gathering was "Shark Tank" crossed with a TED Talk.
- On stage, a screen revealed interested funders, prompting others to raise their hands.
- "Welcome to 'Climate's Got Talent,' " one entrepreneur quipped from the stage.
Friction point: Bubbling beneath the feel-good vibes was scrutiny from participants of the All Aboard structure, including the general collaborative nature and the fund's specific design.
What they're saying: "Investors are paid to make decisions on companies to invest in, so any sort of collaborative effort or non-individual decision-making effort will be approached with some skepticism," said Mike Schroepfer, former Meta CTO and now head of Gigascale Capital, a coalition member.
- "That tension only matters when you have a zero-sum or pie-shrinking point of view," he said in an interview afterward.
- But Schroepfer says he's confident startups will deliver meaningful returns for all involved.
Zoom in: Some attendees questioned whether more equity is what startups need most — versus, say, project finance — and to what degree the fund could reinforce groupthink.
- A related concern was adverse selection — that the fund could draw in startups that look popular among investors but may be less sound underneath.
What we're watching: Anderson expressed confidence that such concerns will be alleviated as investments unfold.
- "If people see this first fund deployed quickly and into good companies," Anderson said. "I think we will have a knockdown argument to institutional capital to come in and support the next round."
Katie Fehrenbacher contributed reporting.
Disclosure: Amy Harder is a former employee of Breakthrough Energy in her role leading Cipher News, an independent news outlet supported by Breakthrough Energy.
