• Breakthrough Energy Ventures raises $839M for BEV III, making it the largest climate fund of 2024.
• LPs show strong support for climate funds, with nearly 5% of global LP capital commitments in early 2024.
• Breakthrough’s early investments, like Boston Metal and Redwood Materials, highlight its leading role in climate tech.

Breakthrough Energy Ventures (BEV), backed by Bill Gates, has secured $839 million for its third flagship fund, BEV III, according to a recent regulatory filing. This makes it the largest climate fund raised so far in 2024.

Founded in 2015 by Gates, BEV was one of the pioneering VC funds focused exclusively on climate investments. “Our mission is to support innovations that will lead to a zero-carbon future,” Bill Gates has stated. BEV’s unique approach and Bill Gates’ extensive network have propelled it to the forefront of early-stage climate investing.

The firm launched its BEV III fund in July 2023, following the $1 billion close of its second fund in 2021. While the final target for the new fund remains undisclosed, LPs have shown a strong preference for early-stage climate funds, even as they pull back from other sectors. According to PitchBook’s 2024 Climate Tech Funds Report, climate-dedicated funds attracted nearly 5% of all LP capital commitments globally in the first half of 2024.

However, early-stage climate investing involves significant risks, including long exit horizons and substantial capital needs for scaling new technologies. Despite these challenges, BEV’s early bets have proven successful. The firm led Boston Metal’s Series A at a $55 million valuation, which was last valued at $860 million in 2023. Similarly, BEV invested in Redwood Materials’ Series B at $217 million, with the company’s valuation soaring to $5.25 billion by 2023.

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Breakthrough has established itself as a leader in climate tech, demonstrating the potential and profitability of early-stage climate investments. “Investing in climate innovation is essential for our future,” Bill Gates emphasized, highlighting the crucial role of such funds in driving sustainable advancements.