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Early stage climate tech investors SOSV has closed its fifth and largest fund, raising $306 million. 

Why it matters: The haul underscores the continued demand from institutional investors around climate tech, particularly for VCs with a history of returns.

Driving the news: SOSV founding and managing general partner Sean O'Sullivan said the fund took over a year to close given the tough fundraising environment.

About a quarter of the fund came from corporations, a larger portion than prior funds, said O'Sullivan.

SOSV plans to invest more in energy decarbonization with this fund, with around 20% already deployed. 

Catch up quick: SOSV backs early stage science and hard tech startups across climate and health and has incubators with lab space in Newark, New Jersey, San Francisco and New York City.

O'Sullivan founded the firm in 1995 and started focusing more on climate investments around 2007. 

About 40% of SOSV funds go into about 80 new startups, and about 60% is invested in follow-on capital for companies already in its incubator programs. 

SOSV says the climate tech startups out of its third and fourth funds had a 50% gross IRR from 2015 to 2022.

The big picture: Companies still need to invest in tech innovation to compete, navigate new technologies like AI and meet sustainability goals. 

Editor's note: This story was updated to clarify the IRR returns in paragraph 9.

Climate tech investors SOSV raises its fifth and largest fund

A quarter of the fund was raised from corporates

Lab space at IndieBio, part of SOSV, in San Francisco. Photo: Courtesy of SOSV.

Lab space at IndieBio, part of SOSV, in San Francisco. Photo: Courtesy of SOSV

Venture capital

Early stage climate tech investors SOSV has closed its fifth and largest fund, raising $306 million. Why it matters: The haul underscores the continued demand from institutional investors around climate tech, particularly for VCs with a history of returns.

Climate tech investors SOSV raises its fifth and largest fund

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