Westly Group Announces $300M Fund IV
The Westly Group successfully raised $300M to invest in transformative companies focused on the digitization and sustainability of energy, mobility, buildings, industrial technology, and cybersecurity. The Westly Group is one of the most experienced firms in the sustainability sector (founded in 2007) and has delivered industry-leading returns.
The Westly Group has a strong track record of partnering with exceptional entrepreneurs. The firm has had nine companies go public including Tesla Motors ($1.1T) and three with $6-$12 billion valuations in the past year including SentinelOne ($12.2B), Procore ($9.8B), and Luminar ($5.5B).
Fund IV will build on the successful investment strategies of prior funds and a track record of identifying disruptive businesses and outstanding founders.
Some of The Westly Group’s notable successes include:
● Investing in and serving on the board of Tesla when the company had 29 employees and a $300M valuation.
● Backing SentinelOne Founder Tomer Weingarten in their Series A, and every round after, to build the $12B global endpoint cybersecurity leader.
● Partnering with Austin Russell and Luminar in their journey to build the first automotive grade LiDAR for an autonomous future.
Twenty-two of the world’s leading energy, mobility, insurance, and industrial technology companies are investors, including Alaska Airlines, Duke Energy, State Farm Ventures®, and Vistra Corp, who are anchor investors in the new fund. Other leading investors include ABB, American Electric Power (AEP), Audi, Bridgestone, China Light & Power, CNH Industrial, Dominion Energy, ENEOS, Geotab, Hitachi Energy, NorthWestern Energy, Origin Energy, Oshkosh Corporation, Puget Sound Energy, Trane Technologies, Xylem, and several financial investors.
The new fund intends to make $5-$15 million investments in companies to accelerate commercial growth and aims to build partnerships with the firm’s corporate LPs.
The Westly Group has deployed capital from Fund IV into two investments: Circulor, the leading provider of supply chain traceability for industrials, and CyCognito, the next generation platform for attack surface management and protection.
A growing number of major corporations and governments are now committing to pursue or require net-zero emissions by mid-century or sooner. These commitments, combined with a growing consumer demand for “green” products and services, are creating large opportunities in the sustainability sector.
The enormous disruption and convergence of energy, mobility, buildings, and IoT will continue to unlock strong opportunities for investment. Steve Westly said, “We believe that our experience, track record, and global network of LPs uniquely position us to take advantage of the revolution in sustainable investing.”
“Alaska Airlines, through Alaska Star Ventures, is thrilled to join the Westly Group’s powerful investment alliance to help us identify and enable technologies to accelerate our path to net zero by 2040,” said Senior Vice President of Public Relations and Sustainability, Diana Birkett Rakow of Alaska Airlines, the fifth largest airline in the United States. “Aviation is one of the most difficult industries to decarbonize, and The Westly Group’s deep knowledge of renewable energy, circular economy, and more, gives us confidence we can grow some exciting solutions together.”
“We are pleased to partner with The Westly Group as we identify new insurance business models that intersect with mobility, buildings, and energy,” said Michael Remmes, Vice President, State Farm Ventures, a subsidiary of State Farm®.
“We are excited to support the Westly Group in their mission to find, finance and foster companies that are revolutionizing energy and mobility,” said Jim Burke, President and Chief Financial Officer of Vistra Corp, a leading, integrated retail electricity and power generation company with operations in competitive power markets across the United States.
“We are long-term partners of The Westly Group and are pleased to continue investing in Fund IV to identify and collaborate with cutting edge energy startups,” said Karl Newlin, Senior Vice President, Corporate Development and Treasurer at Duke Energy, a Fortune 150 company and one of America’s largest energy holding companies headquartered in Charlotte, North Carolina.