Madrid-based venture capital firm Seaya has just launched a new $320 million fund for growth-stage climate tech startups.
Founded in 2013 by private equity veteran Beatriz Gonzalez, Seaya is one of the few European venture capital firms founded by a woman.
The company’s new fund, Seaya Andromeda, is aligned with Article 9 of the Sustainability Finance Disclosure Regulation (SFDR), meaning that all companies it invests in have a positive impact on the environment and society and have non-financial objectives at their core. These companies are also required to report information about their sustainability attributes in a transparent manner.
Gonzalez said the fund’s investments will range from $7.5 million to $42 million. Andromeda also plans to back startups in four key subsectors: energy transition, decarbonization, sustainable food value chains and circular economy in climate technologies.
So far, the fund has invested in five climate tech startups, including UK AI-powered waste management startup Recycleye and San Francisco-based Pachama, which runs a data platform to verify the quality of carbon credits. By 2027, the fund aims to invest in around 25 climate tech startups.
“We look for mission-driven founders with a strong track record and the potential to become CEOs of large companies,” Gonzalez told Business Insider.
“When it comes to startups, we’re looking for companies that can become regional or global leaders in their field,” she added. “Companies should already be revenue-generating, with Series A+ or above being the ideal stage.”
Many venture capital firms are struggling to raise capital amid a tough funding environment in the tech ecosystem in 2023. Gonzalez said Seaya’s 10-year track record in the climate technology space helped the team secure the backing of “major institutions.”
Ceaya Andromeda has attracted funding from notable LPs including Santander, BNP Paribas Group, Bpirfrance, Iberdrola and Nortia, and now has assets of 650 million euros ($700 million) under management across its funds, making it Spain’s largest venture capital investor.
Climate tech remains one of Europe’s bright spots in 2023, with startups in the sector expected to earn around $20.2 billion in 2023, the same as $20.4 billion in 2022.
Investors showed strong interest in carbon removal, energy software and retrofits, which overlap with Seaya’s investment focus areas.
