The harmful effects (and the rapid depletion) of fossil fuels has led the world to aggressively work towards the development clean energy alternatives. But the research work for such efforts requires humongous investments. The need for the same has been recognized by a cohort of powerful as well as successful entrepreneurs, business leaders, and venture capitalists around the world.

Bill Gates and over a dozen high-networth individuals have banded together to launch a venture capital firm called ‘Breakthrough Energy Ventures.’ They plan on investing over a billion dollars in a fund which aims to cut down on greenhouse gas emissions and pour capital into new & emerging clean energy technologies (cleantech startups) over the next twenty years.

This new venture firm has been formed by world leaders including the likes of Alibaba founder Jack Ma, Amazon founder Jeff Bezos, SAP co-founder Hasso Plattner, Khosla Ventures founder Vinod Khosla, chairman of Vc firm Kleiner Perkins Caufield & Byers John Doerr, Virgin Group founder Richard Branson, and many others. This fund is being led by Microsoft founder Bill Gates.

Commenting on the launch of the fund at the opening day of the U.N. climate change summit in Paris, BEV chairman Bill Gates, says,

I am honored to work along with these investors to build on the powerful foundation of public investment in basic research.

Our goal is to build companies that will help deliver the next generation of reliable, affordable, and emissions-free energy to the world.

 

This investment fund, according to the website, is an effort designed to invest in early stage innovations and help build the new companies that will deliver emissions-free energy, agriculture, and goods to the world. The capital will be pumped in long-term, risky ventures which could succeed and help drastically reduce greenhouse emissions. They would also not be limited to early-stage startups but will span across companies that have reached commercialization as well. Breakthrough Energy Ventures will focus on five key areas: electricity, transportation, agriculture, manufacturing, and buildings.

John Arnold, a billionaire natural gas trader, who’s also a part of the coalition adds his two-pence during the launch of this new investment fund:

The dearth of venture funding for clean energy technologies threatens to create a valley of death for the industry, with emerging ideas unable to find the necessary capital to reach commercialization.

As an investor led effort, Breakthrough Energy Ventures is designed as a source of patient capital to spur innovation to meet the growing demand for low-cost, clean energy solutions.

 

This initiative (or fund) has debuted under the umbrella of the Breakthrough Energy Coalition announced last year. This coalition saw a group of wealthy individuals come together and pledge to invest a chunk of their fortunes for the development of clean and sustainable technologies. But how will these world leaders pick the innovations to invest in?

Well, they’ve not only come up with a ‘Lanscape of Innovation’ framework but also an investment criterion – which is now available on their website.

Our leadership will be made up of entrepreneurial investors and scientists, and our investments will be guided by solid research as well as by market priorities. Our board and management team will explore the Breakthrough Landscape of Innovation and decide where to invest based on four criteria – climate impact, other investments, scientific possibility, and filling the gaps.

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