Material Impact recently announced a $352 million fund to expand its impact as the first-money partner to inception-stage companies pioneering products enabled by material science innovation. The firm’s unique and compelling investment thesis, which prioritizes investment in companies solving large-scale and real-world problems, enabled the firm to raise funds amid an economic downturn that saw VC and LP funding run dry.
Despite the first portfolio company investment being made only seven years ago, Material Impact successfully raised an oversubscribed $352 million Fund III from industry-leading existing and new Limited Partners, including marquee university endowments, family offices, foundations, and fund of funds. The core to Material Impact’s investment thesis is the importance of taking an active, hands-on approach to company building. All of Material Impact’s investment partners have backgrounds in material science and other related technical fields and deep operating expertise.
Material Impact was launched in 2016 with a relentless focus on large-scale, real-world, enduring problems that will return value both financially and to humanity. And since then, the firm has grown to nearly $800 million in assets under management. Material Impact is made up of 30 portfolio companies across innovations in food & water, biomanufacturing & sustainable products, underrepresented healthcare, AI & robotics, data storage & and security, sustainable manufacturing, and transportation & mobility.
KEY QUOTES:
“Like Fund I and Fund II, Fund III will focus on companies that have the collective mission of keeping the world healthy, safe, fed, warm, powered, and secured. Material Impact has successfully navigated and supported our founders through times of rapid change and market uncertainty. Our hands-on company-building approach thrives during these periods, and that remains true during today’s challenging market.”
– Material Impact Co-Founder and Managing Partner Carmichael Roberts
“There is no greater time than now to invest in companies and ideas tackling the substantial problems surfacing throughout the world. In the last 50 years, innovations were focused on making life easier and more comfortable. However, now we are beginning to focus on much more serious problems. Whether it be consequences of extreme weather, supply chain vulnerabilities, increased demand on our energy and transportation infrastructure, or the globe’s shrinking clean water supply, Fund III will support the building of companies solving these problems. And we firmly believe that you trace back any disruptive innovation in almost any industry or market to an underlying advancement in material science.”
– Material Impact Co-Founder and Managing Partner Adam Sharkawy
