Investing in breakthrough
technologies with the capability
to materially disrupt climate change
Are you investing in the clean energy we need to save the planet?
It is quite hard to find ways to put your dollars to work in ventures developing critical solutions to the carbon emissions that cause climate change. We know, because we looked! Most ESG and so-called “Impact” funds not only exclude nuclear, they avoid energy almost entirely or worse, they actually invest in natural gas. Additionally, most of the innovation is being done in small, private ventures which are not accessible to ETFs or mutual funds.
Nucleation Capital is the first investment vehicle to provide investors with direct access to the exciting innovations happening within the emerging tech sectors of advanced nuclear energy and deep decarbonization. The technologies being developed in these sectors are what will enable all nations to power net emissions reductions at scale—without compromising energy reliability—and save our planet. So, while investing in private technology ventures is very high risk, we all bear more risk if we don’t solve climate. Nucleation Capital boldly invests in ventures working to save our world and build tremendous portfolio value for investors at the same time.
Why you should invest in advanced nuclear now
Advanced nuclear, also called Generation IV, includes a wide range of mostly smaller (but also larger) modern reactor types and sizes that can better meet the diverse clean energy needs of today’s and tomorrow’s energy buyers, which extends far beyond utilities. Once commercial, these designs are expected to rapidly scale up production and deployment for global installation and even begin to replace coal and gas furnaces for grid generation as well as high-temperature heat for “hard-to-decarbonize” industrial customers.
According to the IPCC, every viable pathway towards zero emissions includes nuclear power. Even though people think of nuclear as being expensive, experts have recently found that deploying a clean, firm energy source like nuclear reduces the total system costs of transitioning to clean energy, by eliminating costly needs for grid-firming extras like grid-scale batteries, redundant generation, as well as the inevitable gas back-up.
Advanced nuclear, designed to be modular with mostly pre-fabricated components, will be able to follow normal cost-reduction production curves. Advanced nuclear plants will increasingly provide a range of flexible services including energy storage, “behind-the-meter” generation for additional revenue streams, as well as possibly having valuable medical or industrial isotopes to sell. Inclusion of nuclear in the EU’s Sustainable Taxonomy and the international carbon credit markets will reduce costs and further help nuclear compete on price.
Russia’s invasion of Ukraine and the ensuing energy crisis has changed the world’s calculus about nuclear’s risks relative to the geopolitical and climate risks of continued reliance on fossil fuels. Increasing numbers of US states and other countries are looking to next-generation nuclear power to help them meet their decarbonization goals, without compromising energy access or security. Gen IV nuclear technologies provide the only reliable power at scale that can enable the world to kick its addiction to fossil fuels in the time frame we need. Those companies which succeed in enabling this transition will produce huge returns for their investors.
About Investing in Venture Capital
Nucleation Capital is the first venture fund to bring deep industry expertise to focus on investing in these emerging climatetech sectors. In order to enable more investors to participate, we have chosen to utilize an innovative technology platform that makes it much easier for investors to find us, learn how private equity works, and, if they so choose, subscribe.
Investing in private equity—in this case, venture capital—poses higher risks than investing in public equities, which means that only those who qualify as “accredited” are allowed to participate. The equity we invest in is non-liquid preferred shares in companies that are not publicly listed, so there is no easy market in which to trade these shares. Thus, when you invest in Nucleation Capital, we agree that the holding period for these investments will be ten years. We endeavor to invest in ventures that will see rapid growth and achieve liquidity (through an IPO, an acquisition, a merger or a SPAC) within ten years or less. But we cannot guarantee what the future holds.
Venture capitalists have found that most ventures will either succeed or fail within a decade and they commit to supporting their ventures’ success for this long. Which is why ten years is the standard venture term and why VCs charge their management fee for ten years. Given this, our technology platform provides you with an account portal that will track your investments, our reporting and your fund performance over this period. We make it as easy and affordable as possible for those who wish to invest. Best of all, you do not need to be ultra-wealthy to join. Most accredited investors can afford an appropriately-sized allocation (starting as low as $5,000 per quarter), that will be invested in between one and two ventures per quarter, on a pro-rata basis.
Why do investors allocate to venture capital when it is so much higher risk and illiquid? Primarily because venture capital can produce returns far in excess of the typical public market returns. Returns of 20x, 100x and even 1000x are not unheard of, largely because younger ventures grow at much faster rates than large, established ventures. The key to successful venture investing is to select a sector whose growth you believe in and only allocate “patient” capital that you don’t need to access now and can afford to lose—much like placing a long-term bet on a future vision. (Read more about venture capital investing here.)
If you are ready to try something different, something
with both more climate impact and more upside,
maybe it is time to try Nucleation Capital?
Finally, a way to invest in advanced nuclear!
Albert Einstein defined insanity as “doing the same thing over and over again and expecting different results.” If we haven’t yet “bent the curve” on carbon emissions, maybe it’s time to consider investing in more powerful clean energy options?