Cleantech VC Firm ArcTern closes $165 Million in its Fund II

On September 18, 2019, ArcTern Ventures (ArcTern), a clean technology (cleantech) venture capital firm, announced a second closing of its Fund II. The Toronto-based firm’s first fund raised $60 million in 2012. Fund II has already closed $165 million from investors including TD Bank Group (TD), OMERS, Equinor, Suncor, and BDC. ArcTern is now aiming to close the fund at $200 million.

As a result of the announced closing, ArcTern’s Fund II is now positioned as Canada’s largest cleantech venture fund. Fund II is being anchored by TD, and marks the first time that TD has invested in a cleantech fund. Drew MacIntyre, Vice Chair and Head of Global Energy at TD Securities said “This investment is part of TD’s ‘The Ready Commitment’ which supports the transition to a lower carbon future and contributes to building a more sustainable tomorrow.”

Founded in 2012 by Murray McCaig and Tom Rand, ArcTern invests globally in cleantech companies that address sustainability and climate change. ArcTern believes that there is a multi-trillion dollar opportunity in the cleantech industry to generate attractive financial returns while having a positive impact on the environment. In Canada, ArcTern works with MaRS Discovery District, one of North America’s largest urban innovation hubs, to source promising cleantech companies to invest in.

ArcTern currently invests in various cleantech subsectors such as energy storage, agriculture technology, and renewable energy, and has invested in Canadian cleantech startups such as Morgan Solar and Parity.

Author: Matt McDonald