January 23, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Toronto-based venture capital ArcTern announced it has surpassed its target of $300 million, and closed its third fund oversubscribed with $335 million in capital commitments including new investments from flagship limited partners TD Bank Group, Allianz, Church Pension Group, OPTrust, Credit Suisse Asset Management and other large institutional investors.

Founded in 2012 on the premise that accelerating the transition to a carbon-neutral economy has the power to disrupt all industries and presents an opportunity for outsized financial returns, ArcTern works out of its offices in Toronto, Oslo, and San Francisco to help solve the climate crisis and reimagine sustainability. 

“We are pleased to help support entrepreneurs on the front line of energy innovation through our investment in ArcTern Fund III,” said Drew MacIntyre, vice chair, TD Securities. “This investment forms part of TD Securities’ Principal Investing Strategy, established in September 2019, and is aligned with the Bank’s desire to support those who are building a more sustainable tomorrow.”

Geographically focused on the North American and European markets, ArcTern invests in technology companies that develop and innovate climate change and sustainability solutions in the circular economy, agriculture, sustainable food, renewable energy, clean mobility, and industrial decarbonization spaces. 

The firm funnels its investments to early growth-stage companies, particularly those conducting Series A and B funding rounds with only those with the highest potential for GHG avoidance being selected to join the portfolio. 

“We are investing across North America and Europe in mission-driven founders who understand that if you’re not rapidly scaling revenue, you’re not having climate impact, and the world needs scaleable decarbonization solutions today, not decades into the future,” said Murray McCaig, co-founder and managing partner, ArcTern Ventures.

With a commitment to deploy its capital in ways that maximize the abatement of greenhouse gas emissions over the lifespan of the fund, ArtTern conducts thorough due diligence, evaluating all potential impacts before committing to an investment. 

And to ensure accountability, Fund III is registered as an Article 9 fund under the European Union’s Sustainable Finance Disclosure Regulations and will be measured against a set of climate impact criteria to quantify and verify the offset of emissions. 

“Spanning diverse geographies and industry verticals, we keep a close eye on the world’s most promising climate startups to ensure that we’re maximizing the utility of our funds,” said Marc Faucher, managing partner, ArcTern Ventures. “As former founders and operators ourselves, we partner and collaborate with bold and innovative startup teams that align with our impact-driven mission.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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