Climate advisory firm optimistic about venture capital investments in Australia amidst decarbonization push

Pollination Group, a climate change advisory and investment firm, observes better opportunities for venture capital investments in Australia as the government ramps up support for decarbonization efforts.

In response, Pollination is launching a new fund to invest in early-stage Australian companies focusing on climate change and nature-related technologies.?

They aim to raise A$150 million ($100 million) by year-end. Queensland Investment Corp., a state-owned entity, is investing in the fund, which will prioritize industries like food and agriculture.

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“Companies are becoming more confident in moving forward with their growth plans” and raising capital, said Diana Callebaut, Pollination’s chief investment officer, told Bloomberg.?

Callebaut added, “New technologies and solutions are fundamental to the transition to net zero,” and recent government stimulus is set to help the heavy industry and transport sectors.”

In 2023, private markets faced challenges worldwide, with data from Preqin Ltd. indicating a 43% drop in fundraising to A$10 billion in Australia. This decline was attributed to higher interest rates and stringent lending conditions, dampening investor enthusiasm.?

However, conditions are gradually improving as global investors seek portfolio diversification in Australia. Additionally, clearer national climate policies are providing reassurance, as stated by Callebaut.