Pangaea Ventures 2022 Impact Report: Leading the Charge in Hard Tech for a Sustainable Future
In 2022, Pangaea Ventures reinforced its position as a leader in hard tech investing, with a commitment to tackle some of the world’s most pressing challenges through innovative technologies. The 2022 Impact Report highlights the strides Pangaea has made in leveraging innovations in materials science, chemistry, and biology to drive solutions that improve planetary health.
The Urgency of Hard Tech Solutions
As the global community shifted its focus from the pandemic to more enduring issues like climate change, inflation, and food security, Pangaea Ventures continued to invest in technologies with real-world impact. The increasing threat of global hunger, exacerbated by climate change and geopolitical conflicts, underscored the need for innovative solutions. Pangaea's portfolio reflects this urgency, with companies tackling problems ranging from sustainable agriculture to carbon reduction.
Founder and General Partner Chris Erickson emphasized the importance of hard technology innovations in addressing these interconnected global issues. The firm’s investments in sectors like ag-tech, energy transition, and alternative proteins demonstrate the tangible benefits that hard tech solutions can bring to both the planet and the economy.
Key Impact Areas
1. Climate Change
Climate change remains a central focus for Pangaea Ventures. The firm’s investments in decarbonization, energy transition, and circular economy technologies are designed to reduce greenhouse gas emissions and promote sustainable industrial practices. In 2022, Pangaea’s portfolio companies reduced 3.7 million tons of CO₂, a key milestone toward their ambitious goal of cutting 55 million tons by 2030. Innovations such as low-cost energy storage and carbon capture technologies are helping industries decarbonize, pushing the needle on achieving global climate targets.
2. Food and Water Security
With the global population expected to reach 10 billion by 2025, the need for a 70% increase in food production is critical. Pangaea Ventures has invested in sustainable agriculture technologies, alternative proteins, and water treatment solutions to meet this demand. In 2022, the firm’s portfolio companies produced 1.5 million tons of food, a stepping stone toward the goal of 50 million tons by 2050. Additionally, the portfolio has saved 7.4 billion cubic meters of fresh water, highlighting the firm’s commitment to preserving this essential resource.
3. Improving Health Outcomes
Pangaea Ventures has made significant progress in improving health outcomes through investments in medical devices, point-of-care diagnostics, and biomaterials. The firm’s new metric, Quality Adjusted Life Years (QALY), provides a more accurate measure of the long-term health benefits of the technologies it funds. By 2030, Pangaea aims to impact 18 million lives through its health-related investments. In 2022, portfolio companies contributed to the improvement of 1.1 million lives, demonstrating the power of hard tech in enhancing healthcare accessibility, affordability, and quality.
Impact Methodology Updates
In 2022, Pangaea Ventures introduced two important tools to strengthen its impact measurement: the Impact Money Multiplier (IMM) and Quality Adjusted Life Years (QALY). The IMM quantifies the social value generated by each investment, while QALY measures the long-term impact of health interventions. Pangaea also engaged Steward Redqueen, an independent impact analysis firm, to review and validate its methodologies. The third-party review confirmed Pangaea’s leadership in the venture capital space for measuring and managing the impact of hard tech investments.
Looking Forward: Bold Ambitions for 2030
Pangaea Ventures is committed to driving exponential impact by 2030, setting ambitious goals across its portfolio. These include reducing 55 million tons of CO₂, saving 153 billion cubic meters of water, producing 50 million tons of food, and impacting 18 million lives. The firm’s investment approach focuses on identifying scalable solutions that can deliver both financial returns and long-lasting social and environmental benefits.
As hard tech investors, Pangaea believes in the potential of innovative technologies to solve the world’s most fundamental challenges. By investing in entrepreneurs who are building a sustainable future, Pangaea Ventures is not only generating returns but also creating a measurable positive impact on society and the environment.
For a deeper dive into Pangaea Ventures’ impact and investment strategy, explore the full 2022 Impact Report.
