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A new Houston-based VC firm called Energy Transition Ventures emerged from stealth mode Tuesday and plans to reach $75 million for its first fund.
Why it matters: It's another sign of how Texas, the nation's largest oil producing state, is increasingly becoming a hub for clean energy innovation.
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ETV says they're the "first venture fund in Texas exclusively dedicated to investing in energy transition technologies."
The big picture: ETV will target early stage North American startups focused on distributed energy, electrification, mobility, and resource efficiency.
“Texas is the energy capital of the world, and outside of corporate venture capital, there are not many venture funds in the state,” co-founder Craig Lawrence said in a release.
Lawrence said he expects their portfolio to include Texas-based companies.
"Texas is in the early days of building an energy-transition startup ecosystem, and we plan to be a central part of growing that sector," he tells Axios.
Details: The "anchor" investment is from two subsidiaries of Korean conglomerate GS Group, including their California-based GS Futures VC arm.
The new firm is headed by energy VC and startup veterans. Lawrence was with Accel Partners during the first cleantech boom and also brings solar sector experience.
Neal Dikeman has worked for Shell's corporate VC arm, helped launch the Bay Area firm Jane Capital and has co-founded several startups.
What we're watching: Lawrence tells Axios they plan to work with the energy transition efforts of major oil-and-gas companies and other Texas energy firms.
"We will bring them startups that may be relevant to their businesses, and co-invest in startups with them when it makes sense," he said.
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