Exclusive: Flathead Forge is raising a $200 million debut fund
Chad Bown, a managing director at BP Ventures for six years, joined Flathead Forge this summer. Photo: Courtesy of Flathead Forge
Flathead Forge, a Houston venture firm focused on hard-tech startups, is targeting $200 million for a debut fund it aims to close this year.
State of play: The fundraise comes as Chad Bown, former head of Americas at BP Ventures, joins the firm.
- Flathead Forge has made nine investments so far, with another eight in the pipeline, Bown says.
Zoom in: The firm is pursuing dual strategies.
- It's making early-stage venture investments in energy, minerals, water, and other hard-tech startups, writing first-checks of up to $10 million for seed and Series A rounds, typically as lead investor.
- It'll also pursue larger growth-equity deals, including some control investments.
What they're saying: "There was a lot of enthusiasm around the climate-tech narrative. What we're looking for are companies with real customers, strong economics," Bown says.
- "If we do that right, that's going to reduce water consumption, provide critical minerals at lower cost."
Flashback: Axios Pro reported last year that BP was slashing staff and selling off investments from its venture arm — moves confirmed this summer by the oil and gas giant as it offloaded the majority of BP Ventures' portfolio.
The latest: Bown was named partner and managing director at Flathead Forge this summer.
- "Going to an independent, institutional platform, there's the ability to focus on an industrial super-cycle in a theme that's not going to change," Bown says.
The intrigue: Bown shared the most common misconception about corporate venture capital he encountered over the years.
- "[Startups] think 100% a CVC is going to be a customer of their product. Many times that's the intent, but that customer relationship can look different," he tells Axios Pro.
- "You want your companies to have other customers — you don't want just BP or Shell to be the only customer."
