FUND III

Backing early-stage technology companies with innovations that address water risks associated with a changed climate.  

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Investment thesis

Back early-stage technology companies with hardware, software, or business model innovations that support industry and society adapt to our new climate reality and an uncertain water future. This is also increasingly referred to as Climate Adaptation Tech, or 'CAT'. 

Our insight

Transitioning to a low-carbon economy and adapting to a changed climate are of equal importance. However, the adaptation 'side' of Climate-tech has unfortunately not received the attention it deserves. Yet, whether too much water, too little water, or compromised water quality, the result of increased atmospheric temperatures is forcing industry and society to adapt to a new climate reality and an uncertain water future. A recent piece in Harvard Business Review here highlights the adaptation side of Climate.   

CAT Dealflow*

The innovations Fund II invests in span 3 technology verticals:  

  • Observe: Technologies that allow us to measure, monitor and see how the physical world is changing;

  • Analyze: Technologies that help us interpret and understand trends and risks in the physical world; 

  • Address: Technologies that affect change on the physical world. 

* Many of the companies Fund II invests in might label themselves as ag-tech, water-tech, fin-tech, or prop-tech. From Mazarine's perspective, they are also in ClimateTech, just not on the decarb side.     

CAT Framing &Taxonomy

A two-page reference here

The CAT opportunity

According to a Bloomberg report, Bank of America analysts estimate that the climate adaptation market could be worth $2 trillion a year within the next five years. While agriculture is likely to be hit the hardest, some experts point to finance and insurance, with their exposure to real estate and the asset class's fixed locations— valued at $200 trillion worldwide — as uniquely vulnerable to the effects of a changed climate.  

Yet, according to a 2021 report from the Climate Policy Initiative, CAT-related "opportunities"s only receive 7% of climate-related investment, spread across a vast spectrum of climate adaptation needs. Mazarine is partnering with a syndicate of like-minded investors to accelerate investment in this opportunity. 

What's in a name? 

Mazarine refers to this space as Climate Adaptation Tech or 'CAT', but we recognize some investors use terms such as: sustainable or regenerative agriculture, climate science, resiliency, et al.  Ultimately, 'CAT' includes any technology that enables industry and society to adapt to an uncertain climate future.  

Utilizing the ESG framework

Measure impact by applying the ESG framework to score portfolio companies on how their innovation supports their customers’ climate adaptation efforts, which spans E, S, and G.  

Investment 

Fund II typically cuts one check of US$500k ad $5M, but will participate in follow-on rounds as appropriate.

Why Mazarine

Mazarine is a leader in the movement to invest in the adaptation 'side' of ClimateTech, which aligns well with our background in water/wastewater. Recently Mazarine was invited to co-author the feature story in H2O Global News, and include our network of industry friends.   Here

MAZARINE CLIMATE ADAPTATION TECH L.P.

Fund II, or Mazarine Climate Adatpation Tech Fund ("MazCAT") is backing early-stage companies with IP rooted in sensing, software, analytics, computer engineering, and other innovations that help their customers meet their climate adaptation goals. 

  • Established: 2023

  • First Investment: Q1 2023

  • Stage: Seed and Series A

  • Expected Investments: 15

  • Check Size:  $500,000 to $5M

  • Board Seat: Preferred

  • Syndicate Participation: Expected

  • HQ location: North America, Europe, Israel, ANZ

What Fund II looks for

Companies with innovations that improve efficiencies and/or reduce climate-change-induced water or wastewater risks in agriculture, aquaculture, buildings, climate, conservation, financial services, industry, power generation, and/or utilities.  

Looking for IP rooted in: Chemistry, Data Science, Diagnostics, Computer Engineering, Information & Communication Technology (ICT), Materials Science, Metagenomics, Microbiology, and Process Engineering.

What problems are the Fund II companies solving?

While their innovations address some aspects of climate-change-induced water or wastewater risk, their customers include a wide range of industries outside of the so-called 'water industry'.  

What's out of scope? 

Early-stage companies with innovations focused on 'decarb', including: renewable energy, energy efficiency, and/or carbon sequestration. This Fund is in ClimateTech, just not on the decarb side. 

Questions about our focus on 'CAT'?