SNØCAP is a new climate-focused venture capital fund that has launched with $5 million to invest in startups that produce environmentally friendly components used early in the supply chain of manufacturing products. The fund aims to reach sectors such as advanced materials, waste, infrastructure, food, and energy to back solutions for industries that contribute 1% or more of global carbon emissions. The founding trio of SNØCAP has a wide range of expertise and experiences that will help in funding diverse technologies.
The team behind SNØCAP includes co-founders Nate Salpeter, Jonathan Azoff, and Shrina Kurani. Salpeter, who runs Sweet Farm in western New York, holds a Ph.D. in mechanical engineering and has previously worked at TerraPower. Azoff, based in Seattle, is a computer engineer with experience in Silicon Valley startups, and Kurani, based in Southern California, has a background in mechanical engineering and sustainability science, with experience working for NASA and launching a water chemistry company.
SNØCAP has already made two investments in startups. One investment was in Sparxell, a company that produces color pigments made from plant-derived cellulose, avoiding the use of plastics and harmful ingredients. The pigments can be used in various consumer goods, paints, and building coatings to boost energy efficiency. The second investment was in RevivBio, a startup using artificial intelligence to discover and test naturally occurring proteins and enzymes that can address environmental issues, such as identifying an enzyme to treat PFAS pollutants.
The fund focuses on investing in early-stage companies with technology that has validation outside of the lab, such as market demand indicators and scalability potential. SNØCAP is investing in physical technologies, facing challenges such as upfront manufacturing costs, scaling difficulties, and slower returns on investment compared to software investments. However, the startups backed by SNØCAP can plug their products into existing supply chains, benefiting their bottom line by offering cost-effective and environmentally friendly alternatives.
Named after shrinking mountainous snowpacks due to global warming, SNØCAP expects to deploy its initial fund over four years, supporting up to 20 startups with investments ranging from $100,000 to $300,000. The fund may also provide additional support with grant writing, field trials, and academic partnerships. Partners of SNØCAP include individuals with experience in sustainable investments. The Pacific Northwest is home to several climate venture funds, including Breakthrough Energy Ventures led by Gates, E8, Elemental Excelerator, and others backed by major tech companies like Microsoft and Amazon.
