The founder of SOSV emphasizes that climate investing is akin to a ‘war effort’ as the firm concludes a $306M fund

SOSV’s latest fundraising effort for its $306 million fund proved to be a challenging journey, taking about a year and a half to complete, with the most significant push occurring in the final six months. Founder Sean O’Sullivan attributes this prolonged process to the cautious climate prevailing in the market, exacerbated by broader economic conditions.

Despite the hurdles, SOSV achieved a significant milestone with the fund, making it one of the largest pools of early-stage deep tech venture capital raised in recent times. O’Sullivan emphasized the firm’s focus on deep tech and its commitment to doubling down on this sector, particularly within climate-related industries.

While the market’s caution may be influenced by factors such as high interest rates, O’Sullivan sees it as indicative of the urgency required in deep tech investing. He views climate change as an existential crisis, necessitating a “war effort” approach to investment.

In contrast to some firms that adopt a broad approach with a large number of investments, SOSV opts for a more concentrated strategy. Rather than spreading resources thinly across numerous companies, SOSV operates more like a studio, focusing on fewer, carefully selected deep tech startups—approximately 80 per year. This approach allows for greater capital allocation, attention, and support to each portfolio company, reflecting the firm’s commitment to quality over quantity.