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The energy transition rests on winning over institutional investors: the foundations and pension funds with the lowest risk appetite but the biggest checkbooks, Congruent Ventures managing partner Abe Yokell tells Alan.

Why it matters: Yokell has spent nearly 20 years in climate-themed investing, co-founding what's become one of the most respected venture investors in the space — and which just raised a $275 million third fund with heavy buy-in from institutional backers. 

This interview was edited for length and clarity.

What's been the big news in climate tech this month?

"There's a global move toward investing institutional capital into decarbonization: in the growth'y area, Galvanize Climate Solutions announced a $1 billion fund, and Brookfield announced an absolutely massive $28 billion infrastructure fund.

In an environment that's no longer yield-starved, where infrastructure investing is no longer as attractive, capital is still going into decarbonized infrastructure."

"It's nuanced. If you're a large asset manager with the ability to invest in something close to home, it's not difficult to find capital. If you're a climate scientist trying to raise a new venture fund, it's not easy."

"But climate and, really, generative AI are two areas that seem to be bucking the trend of institutional investors reducing exposure to private asset classes."

"The massive amounts of talent — from all industries — trying to get into the space and focus on climate solutions is like nothing that I've experienced."

One tip for investors or founders in climate:

"Just because something failed doesn't mean you can't succeed — but know what lessons to learn from the failures."

💼  First job: "Helping my father's business with IT. I was tech support, and I still carry that title."

👑  Proudest investment: "Enphase Energy. There was a moment in the global financial crisis where it would've gone bankrupt if it hadn't been for our and one of our LP's efforts to inject capital. I don't know where their market cap is now [note: it's $14 billion] and we didn't create the value — but if we weren't there, it would not have existed."

🤦 Facepalm investment: "I supported what became a competitor to Uber and Lyft. We got absolutely run over by the capital train that showed up in that industry."

💡 In three-ish words, one change you'd make to climate investing: "Be more thoughtful, fact-based and helpful. Venture is an awesome model, it does not fit for many investments."

Expert voices: Climate needs to get institutionalized

Congruent Ventures co-founder Abe Yokell on climate funding.

Photo illustration of Abe Yokell and a Congruent Ventures pattern.

Photo illustration: Lindsey Bailey/Axios. Photo: Courtesy of Congruent Ventures.

Expert voices

The energy transition rests on winning over institutional investors: the foundations and pension funds with the lowest risk appetite but the biggest checkbooks, Congruent Ventures managing partner Abe Yokell tells Alan.Why it matters: Yokell has spent nearly 20 years in climate-themed investing, co-founding what&#x27;s become one of the most respected venture investors in the space — and which just <a class="gtmContentClick" data-vars-link-text="raised a $275 million third fund" data-vars-click-url="https://www.axios.com/pro/climate-deals/2023/12/07/congruent-ventures-fund-iii" data-vars-content-id="073bf1f3-8588-433f-8422-b59fd2b1a72a" data-vars-headline="Expert voices: Climate needs to get institutionalized" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2023/12/07/congruent-ventures-fund-iii" target="_self">raised a $275 million third fund</a> with heavy buy-in from institutional backers.

Expert voices: Climate needs to get institutionalized

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