Venture Capitalists Band Together in New Bid to Back Climate Tech
(Bloomberg) -- As the US cuts back on climate spending under President Donald Trump’s administration, a group of private investors are pursuing a new model to back emissions-cutting technology.
Khosla Ventures, Breakthrough Energy Ventures and DCVC are among over a dozen venture capital firms and private equity funds announced on Wednesday that they have launched an initiative to help address the fundraising challenge of climate tech startups on the brink of commercialization. Known as the All Aboard Coalition, the new group is on course to close its initial fund of about $300 million by the end of October and aims to make its first investments this year.
The fund will be used alongside coalition members’ individual funds. The existing members manage more than $40 billion in assets.
This comes at a time when federal support and private funding are eroding for expensive climate solutions that take time to scale. US-based startups developing direct air capture — machines that suck planet-warming carbon dioxide straight out of the air — received about $58 million of venture money in the first three months of 2025, a more than 60% decline from a year ago, according to market research firm Pitchbook.
Many early-stage companies that emerged during the Biden era are ready to deploy their technologies but have struggled to find capital to build first-of-their-kind projects. Pathways for funding have further narrowed as the Trump administration rescinds funding and freezes grants. Whether venture capital alone can provide the billions needed, though, remains to be seen.
Multiple carbon capture startups have folded in recent years, including Running Tide and Noya. Others, such as Climeworks, have cut their workforce as they deal with stubbornly high costs. Green hydrogen and long-duration storage have experienced similar growing pains.
“One of the biggest threats to the world’s future is that the companies capable of building a healthy low-emissions global economy are simply not getting the funding they urgently need,” Chris Anderson, a climate investor who has spearheaded the coalition, said in a press release. “The only way to fix that is through collective action.”
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