My Next Google v2.0

This time we get paid to save the climate

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In 2007 I left Google and joined a social impact real estate investment firm called OpenPath. Since then, our projects have made a real difference in the lives of thousands of working class families while doing our part for the environment — and returning 30%+ IRRs for our 400+ investors. Given our triple bottomline successes, I’ve often called OpenPath My Next Google. I am still 100% committed to our work at OpenPath – but now I’m adding a bigger opportunity.

This time we’ll save the climate — and get paid for it!

While watching the California fires this summer, I started studying climate tech. Promisingly, the investment space looks a lot like the internet did in the early 2000’s. After an initial period of over-hype and then disappointment, the climate space has seen rapid, steady technical advancements, investment models have been reconsidered, and now the foundation has been set to enable real, significant growth. At the same time, many of the world’s most influential companies and companies of all sizes have now recognized the need and opportunity — to finally take action on the world’s most pressing crisis. What’s crystal clear is that as we transition to a world with less fossil fuels there will be major opportunities for investors. But for most, what is less clear is how to take advantage of these.

The Big Question

For me the big question is: “How can investors make an immediate, significant impact on the climate and generate outsized financial returns — with well mitigated risk?” I’m excited to share that I’ve found a great answer. In 2013 an investor I have known and worked with for years, founded FullCycle — an investment firm focused on addressing the looming climate crisis. During this time, FullCycle discovered several important insights and learned that the formula for success in climate investing is built on three key components: 1/ The investment vehicle is a blend of private equity and venture capital — with a lot more PE and less VC, 2/ Identify later-stage companies that have developed proven carbon-reducing technologies that are critically both market-ready and scalable, and then 3/ Take a meaningful equity position in these few companies but more importantly control and invest heavily in their respective pipelines of high-ROI, lower-risk projects — the build-out of physical income-generating assets similar to real estate. This strategy is designed to deliver private equity-like returns of 25%+ IRRs with low risk to the principal. FC’s approach is not speculative and doesn’t depend on finding the next unicorn — although this could happen! Especially when you consider that the FullCycle model enables their portfolio companies to remain asset light and build out their capital projects without dilutive equity. Rather than playing for all or nothing outcomes, FC’s goal instead is strong steady, significant returns for investors and the planet.

My Next Google v2.0

After spending a great deal of time understanding FullCycle, their unique investment model, and getting to know the incredibly talented and experienced team, I am more than confident in this opportunity. In fact, I’m just as excited about FullCycle today as I was about Google in 2000. My business partner and I are personally investing $1 million+ in FullCycle’s recently launched $250 million Climate Partners Fund. Most of this fund will be filled by the firm’s existing investors and the clients of large private banks. I am excited to share that in the process of doing our own due diligence, we were able to convince our friends at FullCycle to carve out a small allocation in the fund that we could share with our network.

Here’s what I think you will like the most about FullCycle Climate Partners Fund:

  • Outsized Returns: 25%+ IRRs, 8% preferred return/year, 3.4X multiple on investment over 10 years

To be clear this is not an OpenPath offering — it’s completely separate. It’s a David Scacco/FullCycle opportunity.

This short video is excellent and provides more context.

Please note, I am not a CPA or professional financial advisor. All opinions are my own. FullCycle investment opportunities are for accredited investors only. If you liked to learn more please reach out me at scacco@gmail.com.

Written by

Investor, Partner, Advisor. First Google Advertising Exec (2000–07), ex-Chicagoan. Now at OpenPath Investments & FullCycle Climate Partners

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