Climate-focused VC Aera holds $30m first close, moves headquarters to Singapore

New Zealand-originated climate tech venture firm Aera VC, an investor in Singapore-based cell-based protein firm Shiok Meats, has secured a $30 million first close for its new fund.

Investors in the fund include global investor families who have a focus on decarbonisation and climate solutions, according to an announcement.

Aera said its new fund will seek $100 million from institutional investors in 2022.

The fund is launched with a global portfolio including Shiok Meats, Houston-based, GIC and Temasek-backed chemical decarbonisation unicorn Solugen, Carbon Chain (London), Noya and Twelve (San Francisco), and Fable Foods (Australia).

Aera said it aimed to make up to 30 new seed investments over the next two years and will also contribute to follow-on rounds out of this vehicle.

Aera was founded in 2016 by Nick Winstone and Derek Handley. The latter has been investing in environmental and social-impact ventures since serving as the founding CEO of Richard Branson’s B Team sustainability collective in 2013.

Aera has also moved its headquarters to Singapore, making it “one of the first global climate funds based out of the Asia-Pacific region”.

The firm is also launching an investment DAO (distributed autonomous organisation) called Aera Force, with 2,000 ETH (about $6 million) earmarked specifically for pre-seed projects harnessing the power of blockchain to conquer climate and carbon-related challenges.

“At Aera, our long-term vision is about investing across the sustainability spectrum, by backing breakthrough technologies that reverse climate change, whether they spawn from blockchain innovations or through scientific discoveries. Every industry needs to be reimagined, from finance, food and fashion, through to chemicals, cement and construction,” said Handley.

Aera has joined a series of fund initiatives to tackle sustainability issues in the region, after Singapore-based Circulate Capital raised half of its $50 million targeted fund in December 2021, as well as a spate of other investors.

Tembusu had earlier launched the $100 million Sustainable Future Fund in collaboration with media and business intelligence company Eco-Business, while early-stage investor Wavemaker had also launched a new climate tech venture builder with a target corpus of $25 million.

Other climate funds focused on Southeast Asia include the Asia Energy Transition Fund by Swiss infrastructure fund manager SUSI Partners, Australian VC Investible’s Climate Tech Fund, and Singapore-based Clime Capital’s Southeast Asia Clean Energy Facility.