Investible teams up with UNSW to back climate tech uni spin-offs

Sydney early-stage VC Investible will partner with UNSW’s Trailblazer for Recycling and Clean Energy (TRaCE) program in a co-investment partnership to back climate tech startups emerging from the university.

The Technology Commercialisation Venture Scheme will target Seed and Series A investments into UNSW climate-tech spin-offs and companies supported through TRaCE.

The first-of-its-kind for an Australian university is modelled after similar programs in Israel and Singapore ecosystems to accelerate the commercialisation of research technology.

The partnership allows TRaCE to de-risk its initial investment and benefit from a buy-back mechanism with Investible, which is designed to recycle funds and reinvest returned money into new spin-off startups.

TRaCE director of research and commercialisation Gabriella Nunes said the scheme aligns with TRaCE’s mission to support as many climate tech entities as possible transitioning from research labs to commercial viability and to build a sustainable pipeline of seed funding for TRaCE companies.

TRaCE has initially allocated $1.7 million to the program, supported by Investible’s $32.7m climate tech fund, which has backed 29 startups so far.

“This partnership sets a new standard for TRaCE. TRaCE’s research and R&D capabilities, combined with Investible’s expertise and ASEAN market connections, create a unique pathway for our startups,” Nunes said.

“Through this co-investment scheme, our goal is to provide more funding to high-potential technologies, attract VCs in earlier, and build a sustainable cycle of capital for the university to re-invest into a greater number of startups.”

Investible CEO Charlie Ill has experience from similar co-investment models overseas and is optimistic about their potential here.

“TRaCE’s open-mindedness to new models and willingness to co-create this solution with Investible is a tremendous start,” Ill said.

“This partnership amplifies our investment capabilities and enhances the pathways for university spin-offs to access vital resources and markets.”

Fund Hampton Capital is also a partner in the collaboration, bringing an active management strategy, ability to leverage its extensive network to achieve scale, and expertise in transforming university spin-offs into scalable, high-growth enterprises to the table.

Nunes said the collaboration with VC Partners aims to address the multiple “Valleys of Death” faced by climate tech startups, where high costs and unproven market traction deter private investment. She hopes to attract more investor interest at this earlier crucial stage by reducing risk.

The partnership got underway in August with DeCarice, a hydrogen diesel hybrid technology startup, which is hoping to replacing the amount of diesel fuel in heavy-duty vehicles and machinery by up to 90%.

Bozic, Decarice’s CEO, said: “The full ecosystem has been essential in our journey from lab to market, providing not only capital but also the critical support needed to attract VC funding and drive our growth”.