Raising Investment For Our Planet

2030. That’s the deadline that drives Shally Shanker, founder of Silicon Valley-based investment fund AiiM Partners.

While the ambition to address climate change by 2050 is well meaning, Shally and her team have recognized that waiting until then will be far too late. With each passing year of delay, the expense of lost opportunities will continue to rise, reaching a point where the crisis becomes insurmountable, and we forfeit the chance to scale technologies capable of transforming our economies.

The buying power of $1 invested today is forecasted to equivalent to $1.2 in 2030. Waiting means forfeiting the chance to scale technologies capable of transforming our economies to be environmentally sustainable.

Investing in science-backed tech and innovation

In order to meaningfully address climate change, Shally and her diverse team of technical, investment, and operational experts are investing in companies they believe will help cut carbon emissions by 43% by 2030, in line with the UN’s targets to reach net zero by 2050.

So how does she plan on leading the effort to halve emissions in the next 6 years? By investing in science-backed technology and innovation. AiiM Partners focuses on commercially scaling tech companies which are combating the source of 84% of global emissions. They invest in groundbreaking technologies that revolutionize three key culprits: The materials we use, the way we feed the world, and how we produce and consume energy.

She explains, “We invest in companies that are building products that solve a critical climate problem and are scaling through rapid commercial traction. Solving meaningful climate issues often requires deep or hard tech solutions. It has not been easy for such companies to raise capital recently as most climate investors prefer ‘asset-lite’ solutions to climate, particularly those centered around software. Climate is not only a software problem.”

Her strategy is working

For every $1 invested, AiiM’s portfolio has received $125 in follow-on investments from larger mainstream institutional investors seeking profitable financial opportunities, whether or not they focus on climate.

Take AiiM’s investment in Illinois-based Natural Fiber Welding (NFW), which has developed groundbreaking bio-based materials to replace petroleum-rich materials and leather. This technology reduces greenhouse gas emissions during production by 99.5%, while eliminating chemical run-off produced during leather production. Their sustainable material is on track to be used in BMW cars by 2026.

Another AiiM portfolio company, Lyten, is tackling the complex issue of battery materials, a critical roadblock in the energy transition effort. Lyten converts methane waste from feedstock into a cobalt-free battery alternative material, replacing cobalt, nickel, manganese and graphite.

Lyten’s technology delivers twice the energy density and weight at only a third of the carbon of current lithium-Ion batteries while reducing dependence on mining and constrained supplies. It can also shorten the supply chain by 16X–a game-changer–all without the risks associated with cobalt mining in the Democratic Republic of Congo and graphite production in China.

AiiM’s Sweet Spot: Focus on The “Missing Middle” of Capital

With over 22 years in investment management, Shally Shanker has an impressive track record. She has led global portfolios, spanning diverse asset classes and has been involved with 20 private company boards, most through the lifecycle of the companies, including exit.

Shally and AiiM Partners have found their niche in the ecosystem of climate investing, focusing on the untapped opportunities where capital remains scarce. She believes the real opportunity lies in the ‘missing middle’ of capital: The unclaimed territory between the early seed funds and the larger, institutional funds investing at later stages.

AiiM looks for companies that are already in the market or will be within the next 5 years, with strong potential for rapid commercial traction and scalability. They target investments in industries that are at an inflection point, where investment in potential industry-leaders could mean measurable outcomes by 2030.

Hard Tech, Warm Data

The primary mission of AiiM is to impact climate change while earning above-average returns. But its secondary mission is also a major driver of Shally’s work: To support traditionally under-represented entrepreneurs.

In addition to emissions reduction, she looks at “warm data” that reflects intangibles, like female empowerment and quality job creation. Shally is proud to have over 50% of AiiM’s portfolio invested in women and People of Color, which helps to build a culture of active, hands-on engagement.

Additionally, AiiM’s Fund I portfolio companies have created over 1,088 quality jobs, a number that is expected to increase to 5,000 by 2030.

The Right Deadline

Cutting emissions by 43% by 2030 could ensure that 1.5 billion people can remain safely in their homes rather than be displaced by climate-related events. But it makes financial sense too.

Put simply: it’s cheaper to act now than later. Shally explains, “By focusing on emission cuts now, we significantly reduce the overall cost of addressing these issues. Each decade of postponement in achieving the targeted climate goal results in a substantial escalation of mitigation expenses, with net costs rising by an average of approximately 40 percent for every ten-year delay. Prompt intervention will mitigate the economic downturn, limiting the GDP contraction to 2%, while postponing action until 2050 would exacerbate the impact, leading to a substantial decline exceeding 10%.”

Shally and her team are targeting the vast untapped potential within the $17 trillion industries dedicated to addressing climate change and ocean health. She may be on a tight deadline, but with each industry-changing innovation in AiiM’s growing portfolio, Shally proves that investing now is smart investing.