Key Takeaways
- • Energy Capital Ventures (ECV) closed an initial $45 million in capital commitments from five publicly traded natural gas and multi-line utilities, per a Business Wire release dated August 9, 2021.
- • The founding limited partners are Avista Utilities, Black Hills Corporation, NiSource, Southwest Gas and Spire, all of which are publicly traded.
- • ECV targets early-stage ESG investments in decarbonization, renewable natural gas, hydrogen and digital capabilities for natural gas local distribution companies.
- • The $45 million is the first tranche of a larger fund that will also pursue additional utilities, natural gas value-chain companies and traditional institutional limited partners.
- • The fund is led by managing general partner Vic Pascucci III, with general partners including utility-sector investment bankers Jeff Yingling and Ray O'Connor and Insurtech investor Rick Viton.
Summary
Energy Capital Ventures (ECV), a Chicago-headquartered strategic venture capital firm with a presence in New York, has closed on $45 million in capital commitments from five publicly traded natural gas and multi-line utility companies, according to a Business Wire announcement. The fund is positioned as a strategic vehicle focused on environmental, social and governance (ESG) innovation and digital transformation for the natural gas distribution industry. It will concentrate on sustainability, reliability and resilience priorities, with early-stage investments in decarbonization, renewable natural gas, hydrogen and other clean energy solutions, as well as digital capabilities for natural gas local distribution companies.
The founding limited partners are Avista Utilities (NYSE: AVA), Black Hills Corporation (NYSE: BKH), NiSource (NYSE: NI), Southwest Gas (NYSE: SWX) and Spire (NYSE: SR). Executives from several of these companies commented on the launch. Avista President and CEO Dennis Vermillion said the company has been innovating for more than 130 years and that the investment supports other companies that could bring new technologies to market. NiSource President and CEO Joe Hamrock described the fund as a transformative enabler for partnering with innovative startups. Spire CEO Suzanne Sitherwood said the partnership would match entrepreneurs with established corporations. ECV says its partnership model allows customization of engagement to each limited partner's strategic priorities, giving portfolio companies access to commercial opportunities and industry insight.
The $45 million is described as the first tranche toward a larger fund that will also target additional natural gas and diversified utilities, companies along the natural gas value chain, and traditional institutional limited partners, according to managing general partner Vic Pascucci III. Pascucci, a venture capitalist whose prior investments include Personal Capital, ID.me, MX, Extend, TRUECar, Care.com, Coinbase and Clearcover, leads the firm. Joining him as general partners are Jeff Yingling and Ray O'Connor, energy-sector investment bankers with more than 70 years of combined experience, and Rick Viton, a partner at IA Capital, which ECV will draw on for Insurtech and Fintech relationships spanning AI-driven workforce safety, leak detection, IoT, risk management and cyber and climate risk solutions.
ECV has also assembled a Strategic Board of Advisors that includes current and former utility executives, regulators and energy consultants, among them David Carroll of the Gas Technology Institute, Paul Dabbar, former Undersecretary for Science at the Department of Energy, and Allen Leverett, former CEO of WEC Energy Group.
The founding limited partners are Avista Utilities (NYSE: AVA), Black Hills Corporation (NYSE: BKH), NiSource (NYSE: NI), Southwest Gas (NYSE: SWX) and Spire (NYSE: SR). Executives from several of these companies commented on the launch. Avista President and CEO Dennis Vermillion said the company has been innovating for more than 130 years and that the investment supports other companies that could bring new technologies to market. NiSource President and CEO Joe Hamrock described the fund as a transformative enabler for partnering with innovative startups. Spire CEO Suzanne Sitherwood said the partnership would match entrepreneurs with established corporations. ECV says its partnership model allows customization of engagement to each limited partner's strategic priorities, giving portfolio companies access to commercial opportunities and industry insight.
The $45 million is described as the first tranche toward a larger fund that will also target additional natural gas and diversified utilities, companies along the natural gas value chain, and traditional institutional limited partners, according to managing general partner Vic Pascucci III. Pascucci, a venture capitalist whose prior investments include Personal Capital, ID.me, MX, Extend, TRUECar, Care.com, Coinbase and Clearcover, leads the firm. Joining him as general partners are Jeff Yingling and Ray O'Connor, energy-sector investment bankers with more than 70 years of combined experience, and Rick Viton, a partner at IA Capital, which ECV will draw on for Insurtech and Fintech relationships spanning AI-driven workforce safety, leak detection, IoT, risk management and cyber and climate risk solutions.
ECV has also assembled a Strategic Board of Advisors that includes current and former utility executives, regulators and energy consultants, among them David Carroll of the Gas Technology Institute, Paul Dabbar, former Undersecretary for Science at the Department of Energy, and Allen Leverett, former CEO of WEC Energy Group.
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