Introduction
A traditional venture fund that invests in revolutionary climate technologies
Nucleation Capital plans to launch Fund II in late 2024 or 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 12 months to raise the full fund. We will make 12 to 15 investments over a 24 to 36 month invest period. We will aim to reserve 30% for follow-on rounds. Other than these distinctions, we expect we will 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. 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 growth sector that you should not exclude.
Yes, it is extremely difficult to get up to speed on nuclear technologies—which span a broad array of deeply technical disciplines. It takes a while to build a sense of who the important players are, what is happening in the regulatory space and with international competition, not to mention following fission, fusion and other approaches to atomictech. We offer this fund as an introductory boutique vehicle that provides almost an ETF-like coverage of the 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 portfolio and not overlap with almost anything else that you have invested in.
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 Fund I, Fund II will also be 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.