Key Takeaways
- • AP Ventures, a London-based venture capital firm, held the final close of AP Ventures Fund III at $300 million, according to a firm announcement on October 28.
- • Commitments came from existing and new institutional investors, including sovereign wealth funds, corporates, pension funds and family offices.
- • Since its initial close in 2024, Fund III has backed 13 portfolio companies investing at seed and Series A stages.
- • The fund targets low-carbon molecules, carbon capture and utilization, and advanced recycling for hard-to-abate sectors such as chemicals, steel, aviation and heavy mobility.
- • The close stands out amid slowed fundraising for climate and industrial technology venture funds since the 2021 to 2022 peak.
Summary
AP Ventures, a London-based venture capital firm focused on early-stage industrial and energy technology, has held the final close of AP Ventures Fund III at $300 million, the firm said on October 28. The commitments came from existing and new institutional investors, including sovereign wealth funds, corporates, pension funds and family offices. Since its initial close in 2024, the fund has backed 13 portfolio companies.
The fund invests at seed and Series A in low-carbon molecules, including hydrogen across production, storage, transport and end use; carbon capture and utilization; and circularity and advanced recycling. Target applications span hard-to-abate sectors such as chemicals, steel, aviation and heavy mobility. Portfolio companies named by the firm include Teragen Energy, which develops solid oxide fuel cells for on-site power at data centers, Aether Fuels, Reclinker and Rubi Laboratories.
Founder and managing partner Andrew Hinkly said support from returning investors alongside new institutional partners will allow the firm to keep backing technologies that industry needs to operate more productively and securely. The firm, which has offices in London, Johannesburg and San Francisco, has invested in industrial, materials and energy companies since 2013.
The close stands out in a difficult market for climate and industrial technology venture funds, where fundraising has slowed since the 2021 to 2022 peak. AP Ventures has shifted its pitch toward resilience and supply security, tying the strategy to rising power demand from AI and data centers and to tighter supply chains for critical materials, a framing that has resonated with corporate and sovereign limited partners.
The fund invests at seed and Series A in low-carbon molecules, including hydrogen across production, storage, transport and end use; carbon capture and utilization; and circularity and advanced recycling. Target applications span hard-to-abate sectors such as chemicals, steel, aviation and heavy mobility. Portfolio companies named by the firm include Teragen Energy, which develops solid oxide fuel cells for on-site power at data centers, Aether Fuels, Reclinker and Rubi Laboratories.
Founder and managing partner Andrew Hinkly said support from returning investors alongside new institutional partners will allow the firm to keep backing technologies that industry needs to operate more productively and securely. The firm, which has offices in London, Johannesburg and San Francisco, has invested in industrial, materials and energy companies since 2013.
The close stands out in a difficult market for climate and industrial technology venture funds, where fundraising has slowed since the 2021 to 2022 peak. AP Ventures has shifted its pitch toward resilience and supply security, tying the strategy to rising power demand from AI and data centers and to tighter supply chains for critical materials, a framing that has resonated with corporate and sovereign limited partners.
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