$26m raised for the Australian Clean Energy Seed Fund

Investment service Artesian has announced the completion of a $26 million capital raise for the Clean Energy Seed Fund, including $10 million commitments from the Clean Energy Finance Corporation (CEFC) and Australian Ethical Investment as well as investments from Hostplus and Future Super.

Artesian launched the fund in September last year with a $20 million target, including the $10 million cornerstone commitment from the new Clean Energy Innovation Fund. The Seed Fund is registered with Innovation and Science Australia as an early-stage venture capital partnership (ESVCLP) providing investors with tax-free returns. The fund will invest in start-ups at seed stage via dedicated clean energy accelerators such as EnergyLab, which is supported by Climate-KIC Australia.

The fund can also invest in clean energy start-ups sourced from the broader Australian start-up ecosystem, including accelerators, incubators, university programs and angel groups. The fund will invest at seed, angel and later-stage follow-on rounds in 30 to 50 start-ups over its four-year investment period.

The fund will target scalable, high-potential start-ups fuelling innovation and creating opportunities in the development of clean technology across sectors such as the Internet of Things, energy storage, biofuels, alternative energy generation (solar, wave, geothermal, wind), metering and control, green building and biomaterials, transport technologies, water and waste.

“The investments in the Clean Energy Seed Fund from high-profile institutional investors are a validation of the fund’s objectives and a huge vote of confidence that Australian clean energy entrepreneurs and start-ups can be at the forefront of the revolution in clean energy innovation,” said Artesian Managing Partner Jeremy Colless. “The initial cornerstone commitment from the Clean Energy Innovation Fund has been pivotal to this success.

“Australia has the potential and resources to excel in several innovation verticals, including clean energy, agtech and medical devices. By developing strong start-up activity in these verticals, Australia can address major Asia Pacific megatrends including food security, healthcare spending and sustainable energy, creating domestic jobs and building export opportunities.

“The Clean Energy Seed Fund will play a critical role in helping establish a national clean energy start-up ecosystem, encouraging and supporting entrepreneurs, backing accelerator programs, attracting co-investors and engaging with international, especially Asian, partners and markets.”