A coalition of TED leaders—including TED CEO Chris Anderson and a group of prominent climate advocates, investors, and entrepreneurs—has launched a $300 million fund aimed at solving a critical bottleneck in climate tech innovation: the “valley of death” that leaves late-stage startups stranded between early funding and full commercialization. The fund, formally named the Climate Scale Fund, targets companies developing scalable solutions for carbon removal, renewable energy storage, and industrial decarbonization—sectors where promising technologies often stall because they lack the capital to scale manufacturing, secure regulatory approvals, or expand to global markets. For climate tech leaders, the fund could be a game-changer in bridging the gap between innovation and real-world impact.
The “valley of death” has long plagued climate tech. Early-stage startups (pre-seed to Series B) often secure funding from venture capital firms or government grants to develop prototypes, but companies in the late stages (Series C and beyond)—which need hundreds of millions to build factories, scale supply chains, or validate technologies at commercial scale—struggle to attract investment. Unlike software startups, which can scale with minimal capital, climate tech requires heavy upfront spending on hardware, infrastructure, and compliance—costs that traditional VCs (focused on quick returns) and private equity firms (seeking established revenue) are often unwilling to bear. As a result, even breakthrough technologies—like next-gen battery storage or direct air capture (DAC) systems—often fail to reach the market.
Why the Climate Scale Fund Is Different
What sets the Climate Scale Fund apart is its dual focus on impact and sustainability, not just short-term profits. Backed by a mix of philanthropic capital, family offices, and institutional investors (including several TED community members), the fund has a 10-year investment horizon—far longer than the 7–8 years typical of VC funds—and is willing to accept lower returns if it means accelerating climate action.
“Climate tech doesn’t fit the VC playbook,” Chris Anderson explained in a launch announcement. “A DAC startup can’t ‘pivot’ like a SaaS company, and it might take 5 years to build a factory that proves its technology works at scale. Traditional investors walk away because the timeline is too long, but that’s exactly where we need to step in. This fund isn’t about making a quick buck—it’s about making sure the technologies we need to avoid catastrophic climate change actually get built.”
The fund will target two types of late-stage climate startups:
- Technology Validators: Companies with proven prototypes (e.g., a carbon removal system that works in a lab) but need capital to build commercial-scale facilities and validate performance at scale.
- Scale-Up Leaders: Startups with early commercial traction (e.g., a renewable battery maker with a few pilot projects) that need funds to expand manufacturing, enter new markets, or secure long-term supply contracts with industrial clients.
Notably, the fund will also provide more than just capital. Recipients will gain access to a network of TED’s climate experts, regulatory advisors, and corporate partners (including companies like IKEA and Patagonia, which have committed to sourcing climate tech solutions) to help navigate hurdles like permitting, supply chain logistics, and customer acquisition.
The Urgency Behind the Fund
The launch comes at a critical moment for climate action. The Intergovernmental Panel on Climate Change (IPCC) has warned that the world must cut carbon emissions by 43% by 2030 to avoid the worst effects of climate change—a goal that will require rapid deployment of existing climate tech and scaling of new innovations. Yet, according to a 2025 report from the Climate Tech VC, only 12% of late-stage climate startups reach commercial scale, and the “valley of death” is responsible for 60% of those failures.
“For years, we’ve celebrated climate tech breakthroughs at TED Talks—from DAC systems that pull carbon out of the air to green hydrogen that powers factories,” said Katharine Hayhoe, a climate scientist and fund advisor. “But celebration isn’t enough. If those technologies can’t get past the prototype stage, they’re just ideas. This fund turns ideas into action. It’s the bridge we’ve been waiting for.”
Early interest in the fund has been strong. Within the first two weeks of its launch, the Climate Scale Fund received applications from over 80 late-stage climate startups, including a U.S.-based DAC company seeking $50 million to build its first commercial facility and a European firm developing long-duration energy storage that needs $35 million to expand manufacturing. The fund’s leadership team expects to make its first investments by the end of 2025.
Challenges and Criticisms
Despite its promise, the fund faces skepticism from some in the climate tech community. Critics argue that $300 million is a drop in the bucket compared to the estimated $1 trillion needed to scale climate tech globally by 2030. Others worry that the fund’s focus on late-stage startups ignores early-stage companies, which also face funding gaps—though Anderson has emphasized that the Climate Scale Fund is designed to complement, not replace, existing early-stage funding.
“There’s no denying $300 million isn’t enough on its own,” Anderson acknowledged. “But this fund is a starting point. We want to prove that investing in late-stage climate tech can be both impactful and financially sustainable. If we succeed, we hope to attract more capital—from governments, corporations, and other investors—to scale this model. It’s about building momentum.”
Another concern is the fund’s ability to pick winners. Climate tech is notoriously risky: even with proven prototypes, scaling hardware can lead to unexpected technical or cost overruns. To mitigate this, the fund has assembled a team of technical advisors (including engineers and climate scientists) to rigorously evaluate each startup’s technology, manufacturing plans, and market fit before investing.
What the Fund Means for the Future of Climate Tech
For late-stage climate startups, the Climate Scale Fund represents a lifeline—and a signal that the industry is finally addressing the “valley of death.” For investors, it offers a blueprint for balancing profit and purpose in climate tech. And for the broader climate movement, it’s a step toward turning ambitious climate goals into reality.
“This fund isn’t just about money—it’s about belief,” said Amanda Eichel, CEO of a carbon removal startup that has applied for funding. “For years, investors have told us our technology is ‘promising but too risky.’ This fund is saying, ‘We believe in this risk because the alternative—failing to act on climate change—is far riskier.’ That’s the kind of mindset we need to scale climate tech.”
As the fund prepares to make its first investments, the TED leadership team is already looking ahead. They plan to publish annual impact reports (tracking both carbon reductions and financial returns) to build transparency and attract more capital. Ultimately, the goal is to make the “valley of death” a thing of the past—and to ensure that the climate tech innovations the world needs can reach the scale they deserve.
“In the end, climate action is about more than technology—it’s about making sure that technology gets to where it’s needed most,” Hayhoe said. “This fund is a big step in that direction. And it’s proof that when leaders come together with purpose, we can solve even the biggest challenges.”