Main Sequence raises $250 m “Fund II,” announces focus on decarbonisation tech

The CSIRO-founded “venture science” firm Main Sequence has announced a successful raise for “Fund II” which will continue a focus on companies solving “the world’s biggest problems” but with an increased focus on decarbonisation technologies.
MS was founded in 2017, and has so far backed 26 startups including v2food, Baraja and Gilmour Space. Its $250m second fund was oversubscribed, according to a statement, and supported by returning investors including Horizons Ventures, Hostplus, Lockheed Martin and Temasek, family offices, and private investors from Morgan Stanley Wealth Management and Mutual Trust.

“Our first fund has helped build some amazing companies that are doing everything from making healthcare more equitable, to revolutionising the way food is produced and increasing industrial productivity. This new fund will help us continue this pivotal work to solve the world’s biggest challenges through investment in science-powered companies,” said Mike Zimmerman, a Partner at the firm.

Partner Martin Duursma would head the decarbonisation projects, it said.

“Our ingenuity and deep science background as a nation will be pivotal in building a clean hydrogen industry, adapting heavy industry, decarbonising our energy grids, and developing new ways to capture and sequester carbon,” added Duursma.

Main Sequence has supported two clean energy companies so far, Zimmerman told @AuManufacturing last month, neither of which had been named, and added that they were particularly excited about two things: the market pull for sustainably grown and made “low carbon” food and packaging, and the potential in developing green hydrogen-powered products (for example electrolysers and storage.)

“In both of those cases we have the entire supply chain and decent size markets here in Australia so we think we will see great Australian made companies that can deliver value to an initial local market before going offshore,” Zimmerman said in March.