Introduction
A traditional venture fund that invests in revolutionary climate technologies
Nucleation Capital plans to launch Fund II in early 2025 to enable family offices and larger institutional investors to participate meaningfully in a diversified portfolio of advanced nuclear and deep decarbonization ventures. Fund II’s thesis will again focus on the ventures innovating in nuclear and carbon capture and utilitization technologies that have been largely overlooked by mainstream investors.
Nucleation is raising $30 million for Fund II, with a $1 million minimum and a first close of $20 million, followed by an additional 18 months to raise the full fund. We will make 12 to 15 investments over a 36 month invest period. We will aim to reserve 30% for follow-on rounds. We expect we will laregly follow our current Fund I investment thesis.
An easy way to gain exposure to next-generation nuclear
If you are managing a large portfolio, no doubt you have either fossil fuel holdings, renewable energy holdings or, more likely, both. You probably have little to no nuclear power in your portfolio. Yet, nuclear power generates about 20% of U.S. electricity and supplies almost 50% of our clean energy. More importantly, it has now become a rapidly growing tech sector that you should have exposure to.
Yet, it is extremely difficult to get up to speed on nuclear technologies—which span a broad array of technical disciplines—and the industry that supports it, which is interwoven with activity taking place in the the national labs, in large utilities and industrials. It takes a while to build a sense of who the key players are, where the important conversations happen, and what is happening in the regulatory space. If you are like most investors, you have very outdated notions of where the market is, what the competition is both domestically and internationally and may not even know the distinction between fission, fusion, LENR and other radiologic approaches. We offer this fund as an introductory venture capital vehicle that provides almost an “ETF-like” exposure to next-generation nuclear and the carbon-management sectors.
Nucleation is 100% focused on just these two areas of critical climate tech. In offering Fund II, we provide LPs with a fund that will augment the diversification of your existing portfolio without overlapping with almost anything else that you have invested in. We also offer, when available, co-investment and syndicated SPV investment opportunities to enable LPs to build their allocations in ventures that are of particular interest.
Nucleation’s Fund II Mechanics
Venture capital terms and commitments
Fund II will have a traditional venture structure, with an 18-month raise and a 3-year invest term. Fees are standard 2% and 20% and the fund term will be ten years. Because of our online presence, Fund II will be structured as a 506c fund.
Investors can now request to review our Fund II presentation deck and legal documents. We are meeting with investors and assessing interest levels. Please submit your request through our Institutional Interest form by clicking the button below. We would be happy to schedule a time to meet with you.