Elemental Excelerator, a nonprofit investor in climate-tech startups such as BlocPower and ChargerHelp, says it has “doubled” in the wake of Silicon Valley Bank’s collapse.
Elemental plans to put another $43 million into climate technology startups. Of that, $13 million will be set aside for the 12th Accelerator Program starting in October. Investors have not yet secured all the funds. “We are in the process of raising funds,” a spokesperson told TechCrunch.
Agreed by both VC slowdown and execution in SVB, Elemental will ‘close the funding gap’ with cash, “We will have a deep impact on our communities and accelerate solutions to climate problems.” Climate tech has avoided a funding shortfall in 2022, but given the SVB’s long-standing partnership with climate tech start-ups, the SVB decline appears to have disrupted the sector.
Elemental’s interests are as broad as climate technology itself, extending to electric vehicles, energy storage, recycling technology, decarbonization of cement, seaweed farming and composting.
The company’s funding target represents a step up from the previous year. In 2022, 17 climate-related startups will receive $8 million from him, with each offering between $300,000 and $600,000. This time around, Elemental wants to put between $350,000 and $1 million in up to 20 ventures.
For the remaining $30 million, Elemental CEO Dawn Lippert told TechCrunch that the nonprofit will “use it as catalyst project funding for three to six scale-up projects. plans to invest an additional $30 million. The company said projects run by startups must show that they deliver “demonstrable” greenhouse gas reductions and “deep impact,” which it defines as “significant positive community impact.”
Elemental receives shares in exchange for investments. Lippert told TechCrunch that the nonprofit will “invest the profits from these investments to support future entrepreneurs.”
Elemental says it has invested $43 million in its climate technology business so far.
