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 the future of energy through 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 management technologies that have been largely overlooked by mainstream investors.
Recent events has broadened interest in nuclear energy and Nucleation Capital. Accordingly, Nucleation is now aiming to raise about $100 million for Fund II, with a $5 million minimum and a first close of $50 million. We will complete fundraising after no more than 18 months (possibly sooner) and will aim to make 12 to 15 investments over a 36 month invest period. We will reserve 30% of funds raised in excess of $50 million for follow-on rounds. We expect to follow our current Fund I investment thesis and invest in parallel.
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 on tap 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 If you are like most investors, you have very outdated notions of where the market is, what the competition is both domestically and internationally and may not even know the distinction between fission, fusion,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 a very crafted, boutique exposure to next-generation nuclear and the carbon-management sectors from experts who focus exclusively in these sectors.
If you are considering investing between $3 and $20 million or more, participation in Fund II is your best option and will conform in structure to other venture funds that you support. For those who are serious impact investors, Fund II will augment the diversification of your existing clean energy portfolio without overlapping with almost anything else that you have likely invested in previously (such as solar, wind, geothermal, biofuels, batteries, energy efficiency or fuel cells). If you are considering participation of less than $3 million, your best option is to invest through Fund I using an 8 or 12-quarter subscription.
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, with two 1-year extensions. Because of our existing online presence for Fund I, Fund II will be structured as a 506c fund.
Investors are encouraged to reach out to us to discuss your investment interest. Once we have determined what your likely investment level will be and whether Fund II is your best option, we will be happy to share our Fund II materials. Please submit your interest through our Institutional Interest form by clicking the button below. We would be happy to schedule a time to meet with you as quickly as possible.