money moves

New Houston-based venture capital firm emerges to focus on energy transition

Craig Lawrence and Neal Dikeman co-founded a new venture capital firm focused on funding technology as a part of the energy transition. Photos courtesy

Two Texas entrepreneurs recently announced what they say is the first venture fund in Texas exclusively dedicated to investing in energy transition technologies.

Houston-based Energy Transition Ventures — led by Craig Lawrence and Neal Dikeman — officially emerged from stealth mode with anchor investment from two operating companies from the GS Group of Korea. The fund closed its first capital in February this, completed its first investment in March, and looks to close new investors for a total fund size of $75 million, according to a press release.

"In the near future, energy is going to be delivered and used completely differently. Marginal and average energy and CO2e prices are now on a long term deflationary trend," says Dikeman in the release. "There are 500 multi-billion dollar energy companies globally, and massive portions of global GDP, that are going to get disrupted in the energy transition, from energy & power, transport, real estate, industrial to consumer to agriculture."

Dikeman, who is the managing partner at Old Growth Ventures, a family office investor, also chairs the board at nonprofit cleantech accelerator Cleantech.org, virtual research institute. In 2001, he co-founded San Francisco based cleantech investment firm Jane Capital in 2001.

"We've been successful being highly selective as investors, and using our deep networks and understanding of energy and technology to avoid pitfalls other investors faced. It is exciting to be off the bench to do it again," he continues.

Lawrence, who's also been a part of the cleantech revolution for a chunk of his career, previously started and led the cleantech investing effort at Accel Partners and was previously vice president of product at software company Treverity. The duo chose the Energy Capital of the World to headquarter ETV.

"Texas is the energy capital of the world, and outside of corporate venture capital, there are not many venture funds in the state," says Lawrence. "So it makes sense to start an energy transition focused fund here as the latest wave of clean technology investing accelerates."

ETV will fund from seed to series B with select late-stage opportunities, according to the release, and will colocate a Silicon Valley office with GS Futures, the Silicon Valley-based corporate venture capital arm of energy, construction, and retail conglomerate GS Group of Korea.

"We're excited to be investing in ETV and in the future of energy," says Tae Huh, managing director of GS Futures, in the release. "Energy Transition Ventures is our first investment from the new GS Futures fund, and we've already run successful pilots in Korea with three US startups even before this fund closed an investment – we are working to accelerate the old model of corporate venture dramatically."

Jon Wellinghoff, former chair of FERC, and Deb Merril, president of EDF Retail and co-founder and former co-CEO of Just Energy, have also joined ETV as advisors. GS Energy executive Q Song moves from Seoul, Korea, to join the Houston ETV investment team, according to the release.

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The Texas Medical Center visited the Netherlands to secure a deal that creates a BioBridge to the country and Houston. Photo courtesy of TMC

The Texas Medical Center may be based in Houston, but the organization has again grown its global impact.

Since 2016, TMC’s BioBridges have worked with 88 startup companies. Those include strategic alliances with four other countries. Australia, the United Kingdom, Denmark and Ireland are all among TMC’s BioBridges partners. As of today, add the Netherlands to that list.

On September 27, TMC president and CEO, William F. McKeon, and Carmen van Vilsteren, chair of Health~Holland, Top Sector Life Sciences & Health (LSH), signed an agreement in Rotterdam. The TMC Netherlands BioBridge Memorandum of Understanding codifies the innovative goals of the partnership. Essentially, the BioBridge program provides a means for entrepreneurs, researchers, clinicians and industry partners from other countries to access the US market, as well as TMC experts.

“The TMC Netherlands BioBridge represents an unparalleled opportunity for collaboration and growth,” Ashley McPhail, chief external affairs & administration officer at Texas Medical Center said in a press release. “The Netherlands has solidified its position as a global leader in the field of life sciences and health, with a thriving ecosystem of research institutions, innovative companies, and highly skilled professionals. This strategic partnership will bring positive benefits to patients, clinicians and industry partners on a global scale.”

This lifeline for international healthcare companies makes expansion into the United States far smoother. The Global Innovators Launch Pad allows for startup founders to take part in a 10-week residency at the TMC Innovation Factory that will teach them about foundational infrastructure, clinical evidence and funding in the US.

“Since Texas is an important hub for innovation in the MedTech and digital health sectors, the collaboration with Texas Medical Center creates opportunities for Dutch companies looking to expand their international reach. Vice versa, it gives companies in Texas access to the vibrant Dutch Life Sciences & Health sector,” said van Vilsteren.

That exchange includes members of the TMC gaining the opportunity to participate in the Health~Holland Visitors Programme (HVP), “Shaping the Healthcare of the Future.”

The annual event invites high-level representatives from the private sector, NGOs, knowledge institutions, healthcare providers and different tiers of government to share their expertise.

It's the fifth partnership of its kind for TMC, with the last one being with Ireland, announced last year. TMC's other global initiatives include accelerators with Denmark and the United Kingdom, both announced earlier this year.

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