About Climate Fund 2

Climate Fund 2 is a venture capital fund investing in high-growth technology companies that reduce greenhouse gas emissions at scale, without sacrificing commercial returns.

Climate Fund 1 launched in 2021 as the first ever climate-focused venture fund in New Zealand and has invested in eight portfolio companies, including several that have gone on to win major awards, secure international commercial contracts, and deliver promising emissions-reduction trajectories.

Climate Fund 2 is a continuation of this working model and will double down on what we’ve learned:

• Founders with technical depth and commercial ambition win
• Emissions impact correlates with product-market advantage
• Follow-on rights from Fund 1 create a defensible edge in pipeline

Our deep networks, proven portfolio construction, and exclusive follow-on rights from Climate Fund 1 offer investors an opportunity to back early, gain access to growth-stage rounds, and realise upside through a high-conviction, impact-aligned portfolio.

Climate Fund 2 aims to provide:

• Measurable climate impact - targeting 50 million tonnes of COe mitigated by 2035 for every $50 million invested
• Venture returns (targeting 25%+ IRR).
• Exclusive access to New Zealand follow-on investments from Climate Fund 1.
• Unmatched expertise, rigour and transparency in VC climate investing and reporting.
• Independent scrutiny and validation from a Climate Impact Committee.
• Desirability: Climate-tech founders actively seek us out due to our unique emissions reduction mandate and climate subject-matter expertise.
• Access to the frontier markets of Australia and New Zealand where high-growth, capital efficient climate tech companies abound at attractive valuations.

“The Climate Venture Capital Fund 2 is our preferred sustainable venture capital fund offering in Australasia. It boasts a strong and experienced team and has a lower risk profile than the previous Fund 1 due to its later stage investments”

— EriksensGlobal Fund Review, 2025
An independent review mandated by an institutional investor

Target investments

Emissions reduction is not a constraint on returns, it’s a signal for them.

At Climate Fund 2, we invest in businesses where decarbonisation is a result of their competitive advantage. These are not slower, costlier alternatives, they are disruptive, scalable solutions that customers increasingly prefer and markets increasingly reward.

Why This Thesis Wins

We’ve discovered a niche at the intersection of high-impact climate solutions, and high-growth venture returns

The companies we back don’t rely on green premiums or regulatory loopholes. They succeed because their products or platforms are:

• Cheaper (cost savings from energy/material efficiency)
• Better (new IP, stronger performance)
• Faster (digital-native, distributed, low-friction models)
• Scalable (aligned with major global trends)

Target Portfolio Composition:

• Portfolio size: 10-20
• Company Stage
  Growth: 65%-80%
  Early: 15%-30%
  Pre-commercial: 5-15%

Fund Attributes

The Fund is structured as a limited partnership, with a three-year investment period. Investors commit to a total amount to invest over that period. The manager expects that a maximum of one third of investors’ commitment will be drawn in each year. Investors can choose to have funds called as required for investments, or to place uncalled funds in trust with the manager ahead of capital calls.

The Fund is managed by 2040 Ventures (managers of both Climate Fund 1 and Punakaiki Fund). The fees are industry standard: 2% of committed capital per annum during the investment period, 2% of net invested capital per annum after the investment period), and, after fees are repaid and a return hurdle of 8% p.a. reached, a 20% carry interest.

The Fund is targeting annual returns of 25% IRR. This is a very long-term investment, and initial returns are typically not realised for at least 5-7 years. The minimum investment commitment is $100,000.

Our Team

Our Climate Fund series is led by a trio of accomplished partners, along with members of our Climate Impact Committee.

Dr Jez Weston has over 15 years’ experience in policy and climate advice across roles at the Royal Society and various government departments. Jez managed the Commercialisation Partner Network and PreSeed Accelerator Fund, responsible for over $500m of government contracts, and is a Return on Science - Physical Science Investment team member. Jez has a PhD - Engineering (Cambridge University).

Rohan MacMahon leads Investor Relations for our climate funds. Rohan brings over 25 years' executive, consulting and analyst experience, including leading large climate-change and infrastructure projects across Australia and New Zealand. Rohan was formerly a Ministerial Advisor on technology and digital policy and was the Chair of Lifewise Trust. He has economics and law degrees from Sydney University.

Lance Wiggs brings 30+ years’ of global business and investing experience, having advised hundreds of high-growth companies. Lance also co-founded Punakaiki Fund and is a director of several of its portfolio companies. Lance was the investment-banking advisor for Trade Me's $750 million sale to Fairfax Media. Lance’s career spans time with McKinsey & Co, EBRD, BHP Billiton, Mobil Oil, and as a Councillor for InternetNZ. He has a Technology degree in Product Development from Massey and an MBA from Yale.

Climate Impact Committee

The Climate Impact Committee is a panel of independent experts set up to ensure that the Fund meets its climate impact goals. The committee is charged with creating and maintaining a rigorous and industry accepted method of measuring the reduction of greenhouse gas emissions, reporting those reductions to Limited Partners (investors). The Committee has veto power over investment decisions.

A Limited Partners Advisory Committee (LPAC) supports the Fund by providing advice to the General Partners and Manager on behalf of the Limited Partners. The manager, 2040 Ventures, provides a range of support functions for our climate funds as it does for Punakaiki Fund. 2040 Ventures’ Partner, Chris Humphreys joins Lance, Rohan and Jez as a member of the CVCFe investment committee. This diverse team is based in Auckland, Wellington and Te Anau.