Some retiring CEOs go into space. Others move to Hawaii. But Unity co-founder David Helgason chose a different path after spending 12 years at the helm of the game engine company, which went public in 2020. $13.7 billion valuation,
After stepping down as CEO in 2014Helgason is still on the board of the listed company he co-founded in Copenhagen in 2004; but most of his time is devoted to Transition VenturesAn early-stage venture capital firm he launched in 2021 to focus on climate.
It’s a sign that the fund is called “Transition,” not “Apocalypse.” That’s partly because Helgason is convinced that legacy industries — which are typically harmful to the environment — will eventually be overtaken by more sustainable solutions, and partly because of his personality. “My friends describe me as a ‘glass one-tenth full’ optimist,” he told TechCrunch.
In an interview at his home near Reykjavik, the entrepreneur-turned-VC shared his thoughts on his ventures and how his journey from Unity to climate tech was a homecoming of sorts. “It’s embarrassing how much fun working on the climate crisis is,” he said.
the journey home is very long
Unity’s public debut gave Helgason a BillionaireAt least that’s the case on paper. The market cap has fallen since then, but the bottom line is this: they made a lot of money from the company, and that capital has continued to grow liquid over the past few years.
This made it possible for him to become a successful angel investor, fulfilling his natural desire to spend time with entrepreneurs. But his climate concerns still had to wait: As a self-proclaimed software guy, he had no clear path forward.
This changed when one of his brothers, Ingvar, started a lab-grown leather company. Vitrolabs Inc. This inspired Helgason to get involved with startups and synthetic biology more broadly. Eventually, this led him to a climate-minded deep tech startup.
In addition to his angel investments, Helgason also became a limited partner in several climate-focused funds. “For a while, I was claiming I was probably the most widely invested LP in climate,” he said.
Both activities gave him the opportunity to learn what he wanted. “I always wanted to be a scientist,” he recalled. However, in his current position, he realized he had much more to add as an early-stage investor. Thus, Transition Ventures was born as a venture firm. Helgason already had (and has) a family office named foobarTransition Ventures is a different company, and not just because of its climate mandate.
a fair fund
It would be wrong to think of Transition Ventures as a family affair. Of course, Helgason and Ingvar’s brother Ari is one of its four partners, but Ari’s resume speaks for itself. Their startup, FabricallyHe participated in the Winter 2010 batch of Y Combinator before becoming an investor at Dawn Capital and Index Ventures.
The third partner, London-based Atomico alumnus Christian Branes, was involved from day one, and the trio soon hired New York-based Mona Alsubei, who had learned VC work at Union Square Ventures and its affiliates. Climate FundThe investment team also includes principal Clara Ricard, who most recently Forbes 30 Under 30 Europe 2024 List,
Helgason’s wealth made it possible for Transition to begin investing immediately, but the partners also decided to seek limited partners. “We never thought of doing this as a proper commercial venture fund,” he said. That meant joining the ranks of other climate funds such as Climate Capital and Chris Sacca’s LowerCarbon CapitalAlthough Transition has LPs, it does not disclose the designated fund size, nor how much it has invested so far or plans to invest going forward.
Despite the fact that Helgason was able to operate the fund himself, raising the money was not easy. By the time the paperwork was ready, market conditions had changed.
“Before we could start raising funds properly, the war started [in Ukraine] “It kicked off and we went from the hottest market in quite a while to the coldest market, so it was quite a bit of work,” he said.
Once the fund-raising was complete, Transition Ventures built an LP mix that Helgason considered pretty healthy: some mission-aligned supporters, but also more financially motivated folks without a climate mandate. In other words, they’re in it for the returns, which is the commitment of any commercial venture fund.
Being an LP means generating returns, and doing so within a limited time frame, but Helgason has no problem with that.
“We’re very disciplined in terms of focusing on deadlines, but the climate crisis also requires that,” he said. “We don’t have time to just hang around and explore. … We’re in the business of finding companies that are ready to move … and then we help them get up to speed.”
Portfolio of projects
Because Transition Ventures views climate as a topic, not a sector, its 12 companies Portfolio There are quite a variety of:
- Lightning Mapwhich calculates the carbon intensity of electricity consumption To adapt to large scale usage,
- FabricNanowho hopes to make Cell-free biomanufacturing Cheaper and more efficient at scale.
- Heat Geekwhich provides the support needed to accelerate adoption of independent installers heat pump,
- OdysseyAn online marketplace and software platform that connects investors with developers of renewable energy projects.
- Phase BiolabsA synthetic biology startup upcycling CO2 Can be converted into ethanol and other chemicals.
- ReelA renewable electricity supplier that allows companies to enter into power purchase agreements.
- RevoyA swappable battery solution and charging network to convert trucks into hybrid and electric vehicles.
- flowing waveWhich removes carbon by growing kelp in hatcheries and sinking it in the deep ocean.
- Saafiformerly known as TrueCircleA B2B marketplace for trading recyclables.
- UpwayWhat makes electric bikes more affordable through renewal and recycling,
- hydroplanwho participated in Y Combinator’s Summer 2021 batch and helps companies Manage water risk,
- watershedWho helps Companies make their businesses carbon free.
Unlike Helgason, none of these companies are Icelandic, but he said “that was never the plan.” Running Tide does, however, use Icelandic. An R&D basewith the support of an external team that Helgason helped set up. It is now Transition LabsIt helps climate tech companies take advantage of Iceland and its natural and social features to accelerate their expansion,
Shortly after starting Transition Labs, Helgason moved back to his home country.
“I’ve always wanted to live here,” he said. After spending most of his life abroad, he now lives in a hotel in Iceland. Most expensive properties; However, the price is well worth it considering the Bay Area. The house itself is pretty simple; its most special feature is the beautiful ocean view.
For someone who spends their time worrying about global warming, the ocean is potentially a powerful reminder to take action.
“But to people who say climate change isn’t real, I say it almost matters, because the crises are so big,” he said. Whether it’s biodiversity or ocean health, Helgason is impressed by the caliber of founders tackling these issues. “The talent is incredible,” he said.
Although Helgason no longer considers himself an entrepreneur, he also has a new project, CleanPlayWhose stated mission is to “make sports part of the solution in the fight against the climate crisis”.
The project is still kept secret, and details will be announced at the conference. DICE Europe Conference in September, but we already know that video game legend Richard Hilleman is involved, as well as Benedict Frank, CEO of carbon management startup Planetly. Acquired by OneTrust In 2021.
Combining gaming with climate impact investing seems like a great choice for Helgason, but now his heart is fully focused on climate impact.
“A few years ago, I decided that from now on I would only work on climate,” he said. Transition Ventures still has work to do on that front; it’s “about halfway through” deploying its capital to answer the question on many investors’ minds: Which climate solutions are best?
Disclosure: Anna Heim came on a trip to Iceland. Business Iceland on behalf of Reykjavik Science City,
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