Market - - Dec 13,2016
Founder of Microsoft Corp. Bill Gates, along with a dozen of the world’s richest individuals announced an investment fund of $1 billion to foster production of clean energy.
The fund is named Breakthrough Energy Ventures (BEV) and features other high profile executives like Facebook Inc Chief Executive Mark Zuckerberg and Alibaba Group Holding Ltd Chairman Jack Ma. While, the fund's other investors include Masayoshi Son, founder and CEO of SoftBank Group Corp; LinkedIn Corp co-founder Reid Hoffman; Amazon Inc Chief Executive Jeff Bezos; Virgin Group founder Richard Branson; John Arnold, a billionaire natural gas trader and Prince Alwaleed Bin Talal, the founder of Kingdom Holding.
The coalition, formed initially in December 2015, between these investors is informal and doesn’t have any obligation towards any state or government. The primary aim of this investment would be to work on technology for renewable energy research and development.
The fund would be provided and utilized over a term of 20 years and is likely to go into areas such as electricity generation and storage, agriculture, buildings, manufacturing and transportation.
Gates who is leading this initiative, stated that he is honored to be working with dignitaries who are committed to the formation of this powerful foundation of public investment in basic research. He added that the goal of this foundation would be to deliver reliable, affordable and emission free energy to the world and help meeting the goals set in Paris during the Climate Change Agreement.
At present, the most prominent clean tech company is electric car manufacturer - Tesla Motors, which now sports a market capital of $33 billion. Gates believes that, if the BEV fund can back several companies like Tesla (in other sectors), that would be a success for it. The fund will invest in both early stage and growth stage companies.