Chrysalix Expands Global Cleantech Network of Independent Firms

December 6, 2012 PE Hub 0 Comments

– By Mark Boslet

December 5, 2012– Cleantech continues to struggle to fit into the venture-capital model. Portfolio exits are difficult to achieve, and firms that have been active investors continue to leave the space.

Time to double down!

This seems to be the thinking at Chrysalix Energy Venture Capital, which last week announced a significant expansion of its global cleantech investment network. The firm’s Amsterdam affiliate rebranded itself and a new Asian investment partner – think of it as a franchise – opened its doors.

“Now is the time to be getting into the space big time,” says Richard MacKellar, a managing director, reflecting on the news.

Chrysalix has long been one of the category’s greatest proponents. The announcement shows no let up. The firm, with its main offices in Vancouver and a satellite office in Calgary, unveiled the Chrysalix Global Network, a global initiative to share information on deal flow and markets. The idea is to allow portfolio companies to target their technologies at the most welcoming geographies.

The network includes Chrysalix in North America, but also Chrysalix Sustainable Energy Technologies in Amsterdam, covering Europe with three partners, and Grand River Capital Chrysalix, covering Asia with two partners from Beijing and Taipei offices. Each franchise is locally owned and operated, similar in concept to the DFJ network of 16 venture funds spanning four continents.

“You want local teams making local decisions,” says MacKellar. But as a group, “we share information about deal flow (and) we share information about markets.” He says further expansion of the network is possible in the future.

If Chrysalix wants to compete in a commodity industry where cost is critical, it needs a global reach, he says. As firms get out of investing, it is time to double down.

Photo courtesy of Shutterstock.