Pangaea Ventures Launches $115M CAD Impact Fund Targeting Sustainable Hardtech Innovations

Pangaea Ventures, a Vancouver and Phoenix-based venture capital firm, has successfully closed its largest fund to date—a $115 million CAD ($85 million USD) impact fund aimed at investing in HardTech solutions. These investments are focused on addressing the health of the planet, aligning with global environmental and sustainability goals. This marks Pangaea’s fifth fund, following a five-year investment period, with the firm already having backed five ventures, including the Vancouver-based startup pH7 Technologies. According to Pangaea, half of the fund has already been allocated.

Pangaea's strategy centers on supporting advanced materials, chemistry, and biology ventures, areas where they believe breakthroughs can deliver both financial returns and meaningful, planet-positive impacts. Founded in 2000, Pangaea Ventures has a long history of investing in high-potential HardTech companies, particularly those tackling challenges in clean energy, sustainable agriculture, and biosciences. Their portfolio includes other notable Canadian tech firms such as Vancouver-based Aspect Biosystems and Halifax-based CarbonCure.

The fund will target Series A stage companies, investing between $3 million and $5 million per round, typically as a lead or co-lead investor. Pangaea began fundraising for this fifth fund in July 2022, completing it by April 2024. In total, the fund is expected to make between 10 and 12 investments, with half of its $85 million USD reserved for follow-on investments to support portfolio companies through further rounds of financing.

While Pangaea's investments are largely concentrated in Canada and the United States, the fund is backed by a global mix of corporate limited partners from Asia, Australia, Europe, and North America. Although the firm has not disclosed the names of these backers, they include both new and returning investors from financial institutions, family offices, and foundations.

Pangaea’s first Canadian investment under its new fund, pH7 Technologies, is a Vancouver-based startup working to transform the metal extraction process through environmentally sustainable methods. By focusing on cleaner and low-impact techniques, pH7 seeks to extract critical metals essential for renewable energy technologies, including electric vehicles and solar panels. These metals are crucial for the green energy transition, but traditional mining processes are often associated with significant environmental degradation. pH7’s innovative approach aims to minimize these negative impacts, offering a solution that supports both industrial demand and ecological preservation. Pangaea's participation in the $16 million USD Series A financing round, which closed in March 2023, highlights the firm’s commitment to investing in groundbreaking technologies that drive both economic and environmental progress.

In addition to pH7, Pangaea’s latest fund has invested in several American startups: Ardent Process Technologies, Versogen, Kanvas Biosciences, and Biodel AG. Although there is no set allocation for Canadian companies, Pangaea's primary focus remains on ventures in Canada and the United States. 

Pangaea Ventures is committed to supporting innovations that align with both financial success and sustainability goals. By focusing on advanced materials, clean energy, sustainable agriculture, and biosciences, the firm seeks to invest in companies that can address critical global challenges while delivering strong returns. This dual focus on profitability and positive environmental impact reflects Pangaea's belief that the future of venture capital lies in fostering solutions that benefit both the economy and the planet. Their approach aims to drive meaningful progress in sustainability and environmental health through strategic investments that promote long-term, planet-positive innovation.