The Westly Group, the firm founded and managed by former California state controller and financial officer Steve Westly, just closed a $120 million fund to fuel revenue-generating cleantech companies. With 13 companies already in the Menlo Park, Calif. firm's portfolio -- including crown jewel investment Tesla Motors -- it will be interesting to see which ideas it chooses to back.
Electric vehicles will continue to be an area of emphasis for the firm, which also plans to finance advanced battery companies (logically), as well as green building supply and recycling startups. No prospective investments have been made. The average amount given will be $5 million, with $3 million set aside for any subsequent rounds of fundraising, the firm says.
The firm announced the close of the round last week, but only said it was over $100 million. Apparently, the fund beat its target by 20 percent, a good sign for cleantech investing, still gradually rebounding from the economic downturn and an abysmal first quarter.
While the Westly Group hasn't said much about new companies it might bring into its fold, it has publicly expressed interest in backing startups in China. It has been in talks with a Chinese firm to potentially partner in investments, but no other information has been made available on this count.
Certainly, Westly's relationships with different levels of government have benefited the firm's activities. During his tenure in the public sector, Steve Westly served on the boards of the California State Teachers' Retirement System and the California Public Employees' Retirement System, two of the state's largest pension funds investing in venture firms.
His familiarity with the political landscape clearly helped Tesla land its massive $465 million in stimulus loans from the U.S. Department of Energy. Westly's personal relationships with local leaders also helped the firm's Philadelphia-based portfolio company Recycle Rewards sign cities up for its incentive programs. Westly also has some experience in the cleantech field, having worked at the U.S. Department of Energy in the 1970s.
The firm's 2008 portfolio also includes Amyris Biotechnologies, a promising maker of hydrocarbon-based biofuels; EdenIQ, a producer of cellulosic ethanol; and Eka Systems, provider of wireless technology for Smart Grid systems. It has also invested in non-cleantech startups, including browser-extension maker Cooliris, retail medical provider QuickHealth, and gunshot tracking systems company ShotSpotter.
VentureBeat is hosting GreenBeat, the seminal executive conference on the Smart Grid, on Nov. 18-19, featuring keynotes from Nobel Prize winner Al Gore and Kleiner Perkins’ John Doerr. Get your early-bird tickets for $495 before Sept. 30 at GreenBeat2009.com.