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Generalist VCs downshift Q2 deployment

Megan Hernbroth
Jul 26, 2022
Data: Pitchbook; Chart: Skye Witley/Axios

After a turbulent second quarter, many generalist VC firms stepped back from climate-tech funding deals, to the benefit of specialist climate firms.

Why it matters: The latest funding frenzy has been a case of generalists versus specialists, with many clean-energy and climate-tech veterans quick to blame the generalists for pushing up deal costs.

By the numbers: The top 10 most active investors in the space year to date were nearly all specialist firms, according to PitchBook.

The intrigue: Singapore sovereign wealth fund Temasek Holdings was the only major generalist to crack the top ten.

  • In a recent conversation with Axios, Breakthrough Energy Ventures' Dr. Eric Toone noted that big generalist firms like Temasek play a significant role.
  • "Those are the firms that have the real muscle, the real horsepower to deploy these technologies at scale, and this is not going to happen, you know, without that group of people involved in this," Toone said, referring to investment activity.
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