New $115 Million CAD Impact Fund Established by Pangaea Ventures to Promote Sustainable Hardtech

Vancouver and Phoenix, AZ-based venture capital firm Pangaea Ventures has successfully completed the final close of its $115 million CAD (approximately $85 million USD) impact fund. This fund is dedicated to investing in HardTech solutions aimed at addressing critical environmental challenges and promoting the health of the planet. This marks Pangaea’s fifth and largest fund to date, reflecting its commitment to fostering innovation in sustainable technologies.

The fund operates on a five-year investment period and has already allocated capital to five ventures, including one Canadian tech startup: Vancouver-based pH7 Technologies. According to a spokesperson from Pangaea, approximately half of the fund has already been invested, indicating a strong start to its deployment strategy.

Pangaea Ventures, founded in 2000, specializes in identifying and investing in high-potential HardTech ventures that focus on breakthroughs in advanced materials, chemistry, and biology. The firm believes that the technologies it supports not only generate financial returns but also create substantial, positive impacts on the environment. Some notable names in Pangaea's portfolio include Vancouver-based Aspect Biosystems and Halifax-based CarbonCure, both recognized for their contributions to the tech sector.

The firm focuses its investments in HardTech companies across various sectors, including clean energy, sustainable agriculture, and biosciences. According to the spokesperson, Pangaea typically invests at the Series A stage, deploying between $3 million and $5 million per round, often as a lead or co-lead investor. After initiating fundraising for its fifth fund in July 2022, Pangaea closed all capital commitments by April 2024, with plans to make a total of 10 to 12 investments.

The fund is backed by a diverse group of corporate limited partners from Asia, Australia, Europe, and North America. While the firm has not disclosed specific names, the mix includes both new and returning investors comprising financial institutions, family offices, and foundations. This broad backing underscores the growing interest in sustainable investment opportunities within the venture capital landscape.

The fund's first Canadian investment, pH7 Technologies, focuses on developing environmentally friendly solutions for metal extraction. pH7 is working on clean and low-impact methods to recover critical metals used in renewable energy technologies, such as those found in electric vehicles and solar panels. By employing innovative extraction methods, pH7 aims to minimize the environmental harm often associated with traditional mining practices. Pangaea participated in pH7’s $16 million USD Series A financing round, which successfully closed in March 2023.

In addition to pH7, Pangaea's new fund has also made investments in several American startups, including Ardent Process Technologies, Versogen, Kanvas Biosciences, and Biodel AG. While there is no fixed allocation for Canadian companies, the spokesperson indicated that the fund will primarily focus its efforts in Canada and the United States, with plans to reserve half of the $85 million USD for follow-on investments in existing portfolio companies.

Pangaea Ventures’ commitment to investing in HardTech solutions not only highlights the potential for financial returns but also demonstrates a significant dedication to driving meaningful change in industries that impact the planet. With its substantial fund and strategic focus, Pangaea aims to support the next generation of innovative companies that prioritize sustainability and environmental stewardship.