Investing in
key breakthrough
technologies that will
“disrupt” climate change
Introducing Nucleation Capital
Nucleation Capital is a climate solution-focused team investing in advanced nuclear energy and deep decarbonization innovation. We have designed a number of pathways that make investing in nuclear and carbon climate-tech easier and more affordable for investors. Historically, nuclear innovation happened entirely within the national labs. It wasn’t until the government privatized nuclear development in the 1990s, much like it did space exploration, that it even became possible to invest in these technologies. Now, a new generation of private ventures is well on their way to bringing nuclear energy and carbon management into the 21st Century.
While there are a few public companies working in the areas of advanced nuclear and the carbon capture, utilization and sequestion (called “CCUS”), by far the majority of the ventures seeking to develop clean energy and carbon-management solutions are early-stage private ventures. These ventures are both raising capital from investors and applying for non-dilutive grants from the Department of Energy, which is actively seeking to support development and deployment in both areas. A few advanced nuclear ventures, like TerraPower founded by Bill Gates, can self-fund the private capital they need. The others need to raise meaningful capital from private investors, namely venture capitalists. This is where Nucleation Capital focuses its investment activity.
About Investing in Venture Capital
For most of its history, venture capital investors raised their capital almost exclusively from large institutions like pension funds, foundations, endowments and a few ultra-wealthy individuals. They would commit a small percentage of their total portfolio to venture capital, because of the high risks associated with this asset class. Yet, over many decades, venture capital turned out to be one of the highest-performing investment sectors and allocations to venture capital have greatly increased.
Nowadays, it is no longer the case that only those with millions to allocate to venture capital can afford to invest. Innovations in fund management enable many more types of funds and more more types of investors to participate at lower investment levels. Venture capital remains a high risk, high return sector but many more individuals, who qualify as “accredited” are seeking to participate in it at the level they can afford.
Nevertheless, venture investors must be patient. Venture capitalists work to build a portfolio of investments in high-risk private ventures with the goal of producing a return on capital of 300% or greater over a ten year period, far in excess of the typical public market returns of under 100% over ten years. Many of the ventures invested in will go bust. However, if they are successful, a few of the venture fund investments will achieve spectacular returns of 20 to 100x or greater. Venture funds have ten year terms because it usually takes a decade for a company to build a new market, revenue and achieve liquidity. The ability to wait ten years to receive return is another reason why venture capital has been out of reach for many investors.
Fortunately, there are new innovations that can make investing in venture feasible for more investors. The first is the ability to participate with tens of thousands of dollars, rather than millions. The second is the ability to provide one’s capital on a predictable schedule for a set period of time. The third is a growing market for secondary shares, which facilitates the ability of investors to sell their illiquid share positions even if the stock itself is not public. Click here to read more about venture capital investing.
If you are ready to try something different, something
with both more climate impact and more upside,
maybe it is time to try venture capital?
Invest in advanced nuclear . . . !
You don’t have to be a Bill Gates, Jeff Bezos or Peter Thiel to be able to invest in the next generation nuclear energy or deep decarbonization. Now, for the first time, accredited investors can hold a diversified fund of early-stage ventures innovating in these exciting and climate-saving sectors without risking more than you can afford.
Albert Einstein defined insanity as “doing the same thing over and over again and expecting different results.” We have yet to “bend the curve” on reducing our carbon emissions, the world still relies heavily on fossil fuels. Maybe it is time to consider investing in more powerful clean energy and carbon management options, so we can have better alternatives?
Learn More
If you would like to learn more, please use this link to sign up for “Nucleation Insights,” our occasional newsletter. In doing so, you will be joining our pronuclear network and have access to future opportunities to invest in advanced nuclear and deep decarbonization ventures. If you already know that you would like to invest in ventures working on the critical innovations that will enable humanity to solve climate change, please complete our Investor Inquiry form so we can schedule a time to meet with you, answer your questions and help you figure out the right option for you.