Some retired CEOs go to area. Others transfer to Hawaii. However Unity co-founder David Helgason selected a distinct path after 12 years on the helm of the sport engine firm, which went public in 2020 at a $13.7 billion valuation.
Having stepped out as CEO in 2014, Helgason nonetheless sits on the board of the now-listed firm he co-founded in Copenhagen in 2004; however most of his time is devoted to Transition Ventures, an early stage enterprise capital agency he launched in 2021 to deal with the local weather.
It’s a inform that the fund known as “transition” and never, say, “apocalypse.” That’s partly as a result of Helgason is satisfied that legacy industries — sometimes dangerous to the atmosphere — will ultimately be outcompeted by extra sustainable options and partly due to his persona. “Associates of mine describe me as a ‘glass one-tenth full’ optimist,” he advised TechCrunch.
In an interview at his residence close to Reykjavík, the entrepreneur-turned-VC shared ideas on his ventures and the journey that led him from Unity to local weather tech, a homecoming of kinds. “It’s form of embarrassing how enjoyable the local weather disaster is to work on,” he stated.
A great distance residence
Unity’s public debut turned Helgason right into a billionaire, not less than on paper. Market cap has declined since then, however the gist stays: He made a lot of cash from the corporate, and this capital grew to become more and more liquid over time.
This made it attainable for him to turn out to be a prolific angel investor, fulfilling his pure penchant for spending time with entrepreneurs. However his local weather worries needed to wait: As a self-described software program man, he had no clear manner in.
That modified when one in all his siblings, Ingvar, began a lab-grown leather-based firm, VitroLabs Inc. This led Helgason to get entangled with the startup and with artificial biology extra broadly. Finally, that led him to climate-minded deep tech startups.
In addition to his angel investments, Helgason additionally grew to become a restricted accomplice in lots of climate-focused funds. “For some time, I used to be claiming I used to be in all probability probably the most broadly invested LP in local weather,” he stated.
Each actions introduced him the form of studying he craved. “I all the time needed to be a scientist,” he recalled. In his present state, although, he realized he had extra worth so as to add as an early-stage investor. Thus, Transition Ventures was born as a enterprise agency. Helgason already had (and has) a household workplace referred to as Foobar. Transition Ventures is a distinct beast, and never simply due to its local weather mandate.
A correct fund
It could be a mistake to consider Transition Ventures as a household affair. Positive, Helgason and Ingvar’s brother Ari is one in all its 4 companions, however Ari’s résumé speaks for itself. His startup, Fabricly, took half in Y Combinator’s Winter 2010 batch earlier than he grew to become an investor at Daybreak Capital and Index Ventures.
The third accomplice, Kristian Branaes, a London-based Atomico alum, was on board from day one, with the trio shortly hiring New York-based Mona Alsubaei, who discovered the ropes of VC at Union Sq. Ventures and its local weather fund. The funding workforce additionally consists of principal Clara Ricard, who lately made the Forbes 30 Underneath 30 Europe 2024 checklist.
Whereas Helgason’s wealth made it attainable for Transition to start out investing instantly, the companions additionally made some extent of on the lookout for restricted companions. “We by no means actually thought-about not doing it as a correct industrial enterprise fund,” he stated. This meant becoming a member of the ranks of different local weather funds reminiscent of Local weather Capital and Chris Sacca’s Lowercarbon Capital. Though it has LPs, Transition doesn’t disclose set fund sizes nor how a lot it has invested up to now and plans to take a position.
Even though Helgason was in a position to anchor the fund himself, fundraising wasn’t simple. By the point paperwork was prepared, market circumstances had modified.
“Earlier than we might begin fundraising correctly, the warfare [in Ukraine] had began and we went from the most well liked market in reminiscence to the coldest market in fairly some time, so it was various work,” he stated.
As soon as fundraising was finished, Transition Ventures ended up with an LP combine that Helgason thinks is kind of wholesome: some mission-aligned backers, but additionally extra financially pushed ones and not using a local weather mandate. In different phrases, they’re there for the returns, which is the dedication of any industrial enterprise fund.
Having LPs means having to generate returns, and doing so inside a restricted timeframe, however Helgason is okay with that.
“We’re fairly disciplined about specializing in timelines, however the local weather disaster additionally requires that of us,” he stated. “We don’t have time for simply lingering round and exploring. … We’re within the enterprise of discovering firms which are primed to go … after which we assist them speed up lots.”
A portfolio of initiatives
As a result of Transition Ventures sees local weather as a theme, not a sector, the 12 firms in its portfolio are fairly different:
- Electrical energy Maps, which calculates the carbon depth of electrical energy consumption to optimize utilization at scale.
- FabricNano, which hopes to make cell-free biomanufacturing cheaper and extra environment friendly at scale.
- Warmth Geek, which gives impartial installers with the help wanted to speed up the adoption of warmth pumps.
- Odyssey, a web based market and software program platform connecting traders to builders of renewable power initiatives.
- Section Biolabs, an artificial biology startup upcycling CO2 into ethanol and different chemical substances.
- Reel, a renewable electrical energy provider that lets firms purchase energy buy agreements.
- Revoy, a swappable battery answer and charging community to show vehicles into hybrid and electrical automobiles.
- Working Tide, which removes carbon by rising kelp in hatcheries and sinking it into the deep ocean.
- Safi, previously referred to as TrueCircle, a B2B market for buying and selling recyclables.
- Upway, which makes electrical bikes extra reasonably priced by refurbishment and recycling.
- Waterplan, which took half in Y Combinator’s summer time 2021 batch and helps firms handle water threat.
- Watershed, which helps firms decarbonize their enterprise.
Not like Helgason, none of those firms is Icelandic, however “that was by no means the plan,” he stated. Nonetheless, Working Tide makes use of Iceland as an R&D base, with help from an exterior workforce that Helgason helped arrange. Now referred to as Transition Labs, it helps local weather tech firms leverage Iceland and its pure and societal traits to speed up their scaling up.
Not lengthy after initiating Transition Labs, Helgason moved again to his residence nation.
“I all the time needed to reside right here,” he stated. After spending most of his life overseas, he now resides in one in all Iceland’s most costly properties; though, that price ticket is much from unseen within the Bay Space. The home itself is pretty unassuming; its most placing characteristic is its scenic view of the ocean.
For somebody who spends his time worrying about world warming, the ocean is probably going a robust reminder to take motion.
“However even to individuals who say local weather change isn’t actual, I say, properly, it nearly does matter, as a result of there are adjoining crises which are so large,” he stated. Whether or not it’s biodiversity or ocean well being, Helgason is impressed with the caliber of founders tackling these points. “The expertise is unbelievable,” he added.
Whereas Helgason now not fancies himself as an entrepreneur, he additionally has a brand new venture, Cleanplay, whose acknowledged mission is to “make video games part of the answer within the battle in opposition to the local weather disaster.”
The venture remains to be below wraps, with particulars to be introduced on the Cube Europe convention in September, however we already know that online game hotshot Richard Hilleman is concerned, as is Benedikt Franke, the CEO of Planetly, a carbon administration startup acquired by OneTrust in 2021.
It feels like a terrific match for Helgason to mix gaming with investing round local weather affect, however his coronary heart now sits firmly with the latter.
“A number of years in the past, I made a decision I’ll solely do local weather any more,” he stated. Transition Ventures nonetheless has work to do on that entrance; it’s “roughly midway” by deploying its capital, in pursuit of the reply to the query on many traders’ lips: Which local weather options are finest positioned to scale?
Disclosure: Anna Heim traveled to Iceland on an invite from Enterprise Iceland on behalf of Reykjavík Science Metropolis.
