Starshot Capital is launching its first fund, targeting companies working on decarbonization goals. The venture capital firm’s Starshot Fund I totals $35 million and will back early-stage companies addressing climate change. Brentwood-based Starshot said it’s specifically focused on “high-impact and high-growth” companies in sectors such as industrial, manufacturing, food and agriculture, materials and chemicals.
Managing partner Jeremy Brewer said in a statement that the climate transition is the “largest financial opportunity of the next decade,” with the potential for significant economic returns. Brewer co-founded the firm in 2021 with space engineer Sam Levac-Levey, after the two helped launch a nonprofit called Work on Climate.
“Every industry is in the midst of a radical transformation,” Brewer said. “(They’re) reevaluating supply chains, materials and partners, with an understanding that their business models and their stakeholders are demanding more sustainable practices.”
Starshot is specifically investing in companies with the potential to eliminate a cumulative 1 gigaton of carbon emissions by 2050. The firm previously led a seed funding round for New York-based Ecolectro Inc., which is working to make green hydrogen affordable and nontoxic, and participated in its series A round in March. According to CB Insights, that series A round totaled $5.1 million of financing. Starshot also participated in a $4 million seed funding round for Kensington-based battery manufacturer Harvest Thermal Inc. in the fall.
“Mapping out sectors helps us understand where our capital may be strategically invested to transform an industry,” Levac-Levey said. “By focusing on historically under-invested sectors, we maximize our impact and returns.”
The venture capital firm has seven portfolio companies to date. This includes Sunnyvale-based HVAC technology manufacturer Mojave Energy Systems Inc. and Seattle-based software developer Phaidra Inc. Starshot led a $25 million series A funding round in 2022 for Phaidra, which is using artificial intelligence to optimize power plant operations.
“The companies that Starshot is working with can unlock critical business opportunities by advancing needed climate solutions, dramatically reducing emissions while growing the bottom line,” Starshot senior advisor Jeff Seabright said in a statement.
