New venture capital fund to finance energy and environmental start-ups
Peta Hodge
19th January 2010
Power generation and rail infrastructure company Alstom, has joined forces with energy management specialist, Schneider Electric, to launch a new venture capital fund to finance innovative start-ups in the fields of energy and the environment.
The mission of the Paris-based fund, called Aster Capital, is to take minority interests in innovative start-ups based in Europe – including the UK – North America and Asia, which are developing new technologies that could lead to major breakthroughs in the fields of energy and the environment.
Particular areas of interest include clean energy, energy efficiency, sustainable management of resources, human comfort and security, ecological mobility and smarter infrastructures.
The fund will receive a capital subscription of €70 million (£61 million) – €40 million (£35 million) from Schneider Electric and €30 million (£26 million) from Alstom.
“This is the first time worldwide that two major industrial groups are associated in a joint initiative of this nature,” said Jean-Marc Bally, founder of Schneider Electric Ventures and general partner of Aster Capital.
“This initiative remains open to other industrial and financial partners with a target to raise a total of €120 million (£104.7 million) to €150 million (£131 million) in the coming months.”
The ambition is to create the European benchmark fund specialising in energy and the environment.
Aster Capital will build on the venture capital expertise that the Schneider Electric Ventures team has acquired since 2000, through the management of its first €50 million (£43.6 million) fund, invested in more than 20 companies in North America and Europe.
Aster Capital promises to be ‘hands on’ with any business it invests in – using its expertise to advise the board and management team on the company’s development and growth, and using its connections to facilitate access to potential customers and build technical and commercial co-operations.
Indeed, according to Benoit Toulouse, senior investment partner of the fund: “Aster Capital will be able to provide an unfair competitive advantage to its investments.”