Diagram Ventures Launches $50M ClimateTech Fund for Sustainable Innovation

Montreal-based venture builder and investor Diagram Ventures has unveiled its latest initiative — the ClimateTech Fund. With commitments nearing $50 million CAD in its initial closing, this cleantech-focused venture capital fund aims to drive innovation and support early-stage startups dedicated to addressing climate change and reducing emissions.

Commitments and Backers

Diagram's ClimateTech Fund has secured nearly CAD 50 million in commitments, bringing it close to the $60 million total target. Anchored by Sagard and backed by the Quebec government through Investissement Quebec, the fund boasts major limited partners including Mavrik, Fondaction, and CDPQ-financed Fonds québécois d’amorçage Teralys. Several undisclosed individual investors also contribute to the fund.

Fund Leadership

The ClimateTech Fund will be co-led by Diagram partners Amélie Foz-Couture and Paul Manias. Foz-Couture, a longstanding Diagram partner, has led the firm's venture creation activities for the past five years. Manias, a cleantech expert, joins Diagram from Climate Innovation Capital, bringing valuable experience in later-stage decarbonization investments.

Diagram's Approach to Cleantech

Leveraging Diagram's existing venture creation model, the ClimateTech Fund will identify market opportunities, construct founding teams, and mitigate risks through strategic partnerships. The fund will finance early-stage companies sourced through Diagram and Sagard’s network, with a particular focus on supporting businesses in Quebec.

Growing Cleantech Focus in Canada

The ClimateTech Fund adds to the recent surge of cleantech-focused Canadian VC funds. Notably, Active Impact Investments launched a $120-million climate tech seed fund, and Spring Impact Capital introduced a $20-million fund targeting early-stage firms, with a focus on cleantech and healthtech.

Canada is making strides in global cleantech rankings, with the country on track to surpass 2022’s record-setting totals this year. New cleantech incentives from the Government of Canada and the United States are contributing to a positive ecosystem, despite challenges faced by early-stage cleantech companies, including the recent Sustainable Development Technology Canada funding pause.

Diagram Ventures' ClimateTech Fund signifies a pivotal step towards sustainable innovation. As the fund shapes the future of cleantech, Diagram continues to be a driving force in fostering impactful ventures. Stay tuned for groundbreaking developments in the evolving landscape of Canadian cleantech.

Unveiling Diagram Ventures' latest endeavor — the ClimateTech Fund, a $50 million CAD commitment towards shaping a more sustainable future. Dive into the world of cleantech innovation and early-stage startups dedicated to combating climate change and reducing emissions.