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.