Boston-based venture capital firm Propeller has made its first investments with the $117 million in its inaugural fund.
The ocean climate-focused fund, which was founded in October 2022, recently announced its investment into 14 startups. Propeller invests in companies developing technologies that use the ocean to regulate the climate, but is open to expanding as it looks to invest further.
“Ocean climate extends beyond being on a boat every day,” said Reece Pacheco, an original partner at Propeller.
The firm will look at ocean-adjacent startups, he said, which include companies working on coastal resiliency technologies. Currently, eight of the portfolio companies are related to ocean carbon removal.
Propeller was started by former HubSpot co-founder Brian Halligan. While the firm has publicly announced 14 companies, it has also invested in some other startups in stealth, according to Pacheco. The fund is focused on pre-seed, seed and Series A-stage companies, according to its website.
The first investments closed in late 2023, he said, and dollar amounts have ranged from approximately $500,000 to $1,500,000.
Pacheco said that what’s most exciting to the firm is investing in startups that really understand the complex science of ocean climate mitigation, he said.
“Every team has someone in that founding circle who is a deep subject matter expert,” he said.
In addition to its portfolio of investment startups, Propeller also hosts an “Ocean MBA” program. The program doesn’t guarantee participating founders will receive funding from Propeller, but it does offer ocean climate and adjacent companies mentorship, networking, and courses on strategizing. It’s hosted at Massachusetts Institute of Technology, and is accepting applications for its third cohort, Pacheco said.
Local portfolio companies include Aquatic Labs in Cambridge and Fleet Robotics in Boston. The remaining companies are based on the West Coast and in Colorado, Canada and Israel.
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