Fellowship Spotlight: EHI Cleantech Ventures

“Imagine a world where everyone has access to clean energy,” says Mike Purnell, Co-Founder and General Partner of EHI Cleantech Ventures, “a world where the water we drink and the air we breathe in our communities is pure and uncontaminated.” This is the driving vision behind EHI, an early-stage venture capital firm investing in underrepresented founders working in the climate technology space. 

The Magnitude of the Problem 

To clearly illuminate the issue they’re tackling, the EHI Cleantech team points to a recent report published by The International Renewable Energy Agency (IRENA). The report highlighted the major funding gap in the clean energy space, elevating that, between now and 2030, $44 trillion is needed to close the gap, with $35 trillion needed in energy transition technologies in particular. 

“Without this financing to close the gap,” according to the EHI team, “the world will likely continue to rely on polluting fossil fuels for power and will not achieve a fully green transition. We see investment in renewable energy and related green technologies as a means of powering the energy transition and securing the future of the planet.”

Bringing More Equity to Renewable Energy

The current reality is that millions of Americans don’t have access to the basic necessities of clean air and water. Purnell is a native of Mississippi, where residents continue to suffer due to environmental racism and classism. Look no further than the Jackson water crisis that came to a head in the nearly all-Black city in 2022. Purnell and his two partners, Kijana Mack and Rodolfo Rueda, are on a mission to make renewable energy accessible to everyone, not just those at the top of the socioeconomic pyramid. 

EHI Cleantech Fund 1 is a $25M fund sourcing and investing in innovative, early-stage, high-growth companies, mainly in the U.S., whose founders come from the communities they’re working to impact. With these investments, the firm is working to drive a sustainable future by advancing clean technologies. “We particularly look for startups in the clean energy subsectors of renewable energy generation, energy storage, climate innovation, and electric vehicle infrastructure,” Purnell explains. 

Making Connections in Mexico

Rueda and Mack worked together for several years before connecting with Purnell. Mack worked in New York City at Moody’s from 2010 to 2015, covering the energy sector in their Corporate Finance group. After five successful years in that role, he shares, “I was selected to relocate to Mexico City to cover energy and infrastructure companies across Latin America, and was based in Mexico City. I formed Mexico Energy Partners to take advantage of the opportunities in the newly deregulated energy sector in Mexico.” As part of their work, the Mexico Energy Partners team provides their clients, which include manufacturers and multinationals operating in Mexico, with the market intelligence they need to make informed decisions about their energy consumption and carbon reduction initiatives.

While working to grow his new company, Mack attended a networking event in Mexico City where he met Rueda for the first time. “When I Googled Rodolfo the next day,” he shares, “I realized he was the top energy lawyer in Mexico. We formed a partnership between his energy team at Holland & Knight and Mexico Energy Partners and we’ve served some of the world’s largest industrial multinational companies operating in Mexico to procure renewable energy.”

Nurturing the Next Generation

“We’re committed to identifying and nurturing the next generation of clean energy startups,” says Rueda. He and Mack eventually teamed up with Purnell when he was a leader in General Electric’s energy and infrastructure group, and they formed EHI. “Since then,” Mack reflects, “we’ve been leaning on each other’s strengths as a team to find the right opportunities to invest in.” 

The team also elevates its vast network of startups that the GPs of EHI have mentored and advised through their relationships with some of the most prominent clean technology accelerator programs. “Through our active involvement and partnership with Gener8tor and Startup Mexico—two of the biggest cleantech accelerators in the industry,” Purnell shares, “we’re able to identify and get access to the best deals and potentially collaborate with other VC partners while building strong relationships with diverse founders and their teams. We work with them, develop relationships, and support their technology development and relationship building.” 

And they’re not just seeking folks who have cutting-edge technologies, but specifically seeking out founders who have the innovative solutions and the lived experience that gives them a clear and intimate understanding of the nuances of the challenges they’re seeking solutions to. Purnell offers, “We connect with them in a way that allows us to develop relationships and work alongside them in the communities they’re trying to make an impact in.” 

Their accelerator connections across and outside of the country provide them with insights and access to talented, dedicated founders who are being overlooked by other firms. “We’re able to look in some places that are overlooked by traditional venture capitalists,” Mack says, pointing to some of EHI’s more unique partnerships, like a few they have with institutions of higher education in less-funded regions of the country. “We’re able to find undervalued startups with high potential and get them an attractive valuation,” he adds, “while also being able to support founders who can see themselves reflected in our diverse team.” 

What Sets EHI Cleantech Ventures Apart

“Our differentiating factors evolve around our network and our corporate partnerships,” says General Partner, Kijana Mack, pointing to partners including Mitsui & Co. Infrastructure Solutions, Forefront Power, and Johnson Controls, among others. “Our corporate partnerships are the primary way we create value for our founders and investors. We’re able to introduce new solutions to our corporate partners via pilot projects, which ultimately can lead to purchase orders and growing revenue for our startups.”

“It’s a two-pronged approach,” Mack adds, “using our network to source the deal and helping companies scale faster than they would have with pilot projects and purchase orders.” The firm offers a comprehensive growth platform that leverages EHI’s extensive network of industrial and utility partners to provide the strategic support needed to help companies grow and sustain. “Our partnerships span the energy value chain,” Mack explains, “enabling us to drive the adoption of innovative clean technologies on a global scale.” 

The EHI team also brings a remarkable amount and range of experience to their work. Purnell has over two decades of experience leading strategic initiatives at the intersection of energy and technology. He leverages existing relationships with current founders, private equity industry associations, cleantech incubator programs, and other corporate relationships to support companies with commercial growth strategies and risk mitigation plans.

Rueda brings his expertise as an international business attorney and a specialist in energy, natural resources, infrastructure, clean technology IP, and patent protection. He’s advised and closed on several notable international deals that advance clean energy in Mexico and internationally. 

Proximity to the Problem

“We’re passionate operators with 20+ years of experience in the renewable energy space that can really be leveraged to accelerate the adoption of these startups,” Purnell shares. But his passion goes deeper than his profession. “For me personally,” he adds, “growing up in the southern part of the U.S., we actually felt the negative impacts of climate change as it pertains to clean water. That gives me a sense of urgency around the impact we’re trying to make through our investing.” 

Mack, who grew up in Baltimore, Maryland, also points to proximity to the problem as a motivating factor. “We’ve really seen the disparities between some of the large-scale, clean energy, electric vehicle charging projects we’ve worked on and their beneficiaries, versus in other communities where you don’t see the technology inside the homes, on the rooftops, or anywhere else.” He underscores the example of Jackson, Mississippi, and points to the Flint, Michigan, water crisis as unjust situations that drive the firm’s commitment to change in their sector. “We’re reminded of the severity of the issue on a daily basis and motivated to find solutions to mitigate the disparities.” 

Participating in the VC Include Fellowship

“Not many of the venture capital firms we’ve been exposed to in other accelerators look like us,” says Purnell, pointing to a unique and powerful value-add of the VC Include Fellowship — a built-in community of like-minded, underrepresented fund managers. “Being a part of an ecosystem of fund managers focused on impact investing who are trying to impact underrepresented communities is powerful.” 

The EHI partners lift up the benefit of not only learning the core skills needed to successfully deliver outsized returns to stakeholders, but also the power of having a space and meaningful, aligned connections to collaborate with and expand their impact together. “Being a part of the VC Include Fellowship brings a sense of purpose to the investments that we’re making.”

All of us at VCI look forward to watching EHI continue to make purposeful and powerful investments that shape a cleaner future for everyone.