A decade of impact: Full Vision Capital’s climate tech investments

“What will the world look like in 2050? Will this planet still be suitable for the next generation?”

A decade ago, such questions frequently came up in discussions between Alan Chan and Peter Lee Ka-kit, the co-chairman of the Hong Kong and China Gas Company (Towngas).

These conversations often occurred against the backdrop of news reports about extreme weather events. That year marked a turning point as the global climate crisis intensified, with frequent instances of extreme weather: torrential rains and floods swept across parts of Europe during summer, while countries like Argentina and Brazil in South America endured severe droughts.

At the time, climate change had not yet become a mainstream concern. Terms like “carbon peaking” and “carbon neutrality” were far from being buzzwords. It was against this backdrop, under Lee’s advocacy, that Chan founded Full Vision Capital—an investment firm focused on low-carbon technologies, built on the principles of longtermism.

Full Vision Capital’s investment philosophy is straightforward: seek out “pure” entrepreneurs. Chan, the executive director and chief investment officer of Towngas, as well as the managing partner of Full Vision Capital, often emphasizes that the goal is to find individuals who “stay foolish.” Here, “foolish” doesn’t mean naive, but rather refers to entrepreneurs driven by an idealistic and passionate mindset—Chan prioritizes not just their business acumen but their commitment to the planet’s future.

In 2024, Full Vision Capital celebrated its tenth anniversary. Guided by this investment preference, the firm has nurtured a portfolio of high-quality climate tech projects. Many of these have grown into industry unicorns, leading fields such as sustainable aviation fuel (SAF) and energy storage solutions.

However, today’s achievements didn’t come without challenges. Chan cites EcoCeres, a company Full Vision Capital incubated, as a prime example. EcoCeres specializes in biorefinery technology that converts waste cooking oil into SAF. By 2022 and 2023, the company had captured approximately 20% of the global SAF market, with its production processes reaching a steady state.

“But three years ago, it was a different story,” Chan told 36Kr. “At that time, we were still struggling with production stability. Now, those issues are a thing of the past. However, the road ahead remains long as we continuously refine concepts, optimize production, enhance technologies, and strengthen our team.”

Chan deeply understands that sustainable investing requires a focus on long-term societal value, combined with a solid foundation for immediate growth. This balance forms the cornerstone of Full Vision Capital’s philosophy: “Doing well by doing good.”

“Doing well refers to financial profitability,” Chan said. “Doing good emphasizes creating social value. For us, investing is about more than just profits—it’s about building a socially meaningful future.”

This principle has been instrumental in Full Vision Capital’s evolution into one of Asia’s largest green energy incubators. Over the past decade, the firm claimed its incubated companies have collectively reached a valuation exceeding USD 6.5 billion. What started as a fledgling venture has now matured into a market-oriented, globally positioned innovation enterprise.

The TERA-Award competition is one of Full Vision Capital’s most notable accomplishments in the past decade. Now in its fourth iteration, this global zero-carbon technology acceleration platform has attracted nearly 1,000 energy tech projects from over 59 countries and regions in its first three editions. Dubbed a nurturer of green unicorns, the TERA-Award integrates application scenarios, investment, and prize incentives.

Before this year’s TERA-Award competition, 36Kr spoke in-depth with Chan. Reflecting on the event’s theme, Chan summarized it with one word: “together.” Beyond signifying the collaboration between investors and projects, this theme encapsulates a tightly woven ecosystem of innovation and a deeper harmony between humanity, nature, and the planet.

Despite a decade of remarkable achievements, Chan believes there is still much to be done: “If starting a business failure is like the Valley of Death, we’ve just transitioned from ‘zero to one,’ akin to surviving the ICU. But the journey ahead is arduous. Climate tech investment is not just a business—it’s about the planet and every individual of the next generation.”

The following interview has been edited and consolidated for brevity and clarity.

36Kr: You mentioned that Full Vision Capital achieved “zero to one” in 2024. How do you define this milestone?

Alan Chan (AC): Achieving “zero to one” isn’t a victory—it marks the start of new challenges.

If we liken entrepreneurial failure to a “Valley of Death,” reaching “one” signifies a relatively stable state. The journey from zero to one feels like struggling in an ICU, where survival hangs by a thread. Achieving “one” means the business is stable, but risks remain.

Take EcoCeres as an example. By 2022 and 2023, it held around 20% of the global SAF market, and its production processes had stabilized. But three years ago, we were still grappling with those very issues. Now that we’ve overcome them, our focus shifts to refining our concepts, optimizing production, advancing technology, and strengthening our team. The road ahead is long.

36Kr: “Doing well by doing good” has become Full Vision Capital’s guiding principle. How do you define “well” and “good” in this context?

AC: This principle, proposed by our chairman Peter Lee Ka-kit, remains evergreen. “Doing well” refers to financial profitability, while “doing good” emphasizes creating social value. For us, investing is about more than just profits—it’s about building a socially meaningful future. This idea is critical to our operations.

36Kr: How does this philosophy shape your investment practices?

AC: We adhere to a concept we call “fulfilling gaps.” This means helping entrepreneurs bridge the gaps in their markets, akin to “laying bricks” where support is needed most.

For early-stage projects, I aim to resonate with entrepreneurs beyond a purely financial relationship. When making investment decisions, we prioritize long-term strategy and fundraising capacity, favoring projects with the potential for sustained development over short-term industry trends.

We don’t take a scattergun approach but instead maintain high standards for selection. Our portfolio is intentionally small, allowing us to offer deep, hands-on support and create long-term value.

36Kr: Full Vision Capital has an increasingly global investment footprint. Why is a global perspective so crucial, even for startups?

AC: The international energy landscape underscores the necessity of a global outlook. Energy and climate challenges are inherently global and cannot be addressed in isolation. A global perspective reflects this reality.

For instance, the third TERA-Award competition showed clear signs of internationalization, with over half the participating projects coming from global teams. Comparing domestic and international energy ecosystems, Chinese startups often focus on production, while international projects tend to explore diverse areas such as molecular materials, material innovation, and platform-based technologies. These approaches are valuable learning opportunities.

36Kr: This year’s TERA-Award theme is “together.” Why choose this word?

AC: Entrepreneurs supported by Full Vision Capital, though operating in diverse fields, share common traits. As we celebrate our tenth anniversary, we wanted a theme that embodies our philosophy of connection: “bonding.”

We aim to transition from being a straightforward investor to a long-term growth partner. Beyond providing funds, we deeply understand and support the resources our portfolio companies need for long-term growth.

We also encourage collaboration within our portfolio. For example, StarFive Technology, one of our incubated companies, has partnered with Towngas Lifestyle to co-develop the first IoT security chip based on the RISC-V architecture for the gas industry, used initially in smart gas meters. By October 2024, the chip’s cumulative shipments exceeded 3 million units, with applications extending to smart kitchens, home safety, elderly care, and more.

36Kr: You emphasize finding entrepreneurs who are “doing well by doing good.” Is this particularly challenging in the climate tech sector? Any examples?

AC: This is a critical point. Entrepreneurs who succeed in climate tech often display a unique “innocence” or idealism—a kind of “stay foolish” spirit. By “foolish,” I don’t mean naive but rather those who willingly take the harder path to do what’s right.

This idealistic drive is a key criterion for us—we look beyond business skills to their sense of responsibility for the future and the planet.

36Kr: On the tenth anniversary, what is your vision for Full Vision Capital’s future?

AC: The past decade was filled with challenges and growth. Yet, the joy we find isn’t from external achievements but from solving problems and witnessing personal and team progress.

Looking ahead, I want Full Vision Capital to evolve from an incubator into a globally influential investment platform. I hope that any climate tech startup in Asia—or globally—will see us as their first choice for support and collaboration.

36Kr: Do you think renewable energy investments can still be considered a fad today?

AC: Having worked in the energy sector for over two decades, I believe calling it a fad oversimplifies the situation.

Energy is deeply intertwined with our daily lives. The transformation of the energy sector should be viewed as a long-term process of adjustment and optimization. Different segments evolve at their own pace, and their development stages vary significantly, making it essential to categorize technology tracks clearly.

Take hydrogen energy as an example. While its technical potential is enormous, the market’s maturity and commercialization are far from meeting mainstream investment criteria. Hydrogen energy can be described as a future opportunity rather than an immediate explosion point.

In contrast, renewable energy fields like solar power are experiencing growing pains. Negative electricity pricing in regions such as Europe, China, and the US indicates market saturation to some degree. The focus now is on enhancing the flexibility and efficiency of energy systems rather than merely increasing generation capacity.

36Kr: Have you noticed any issues within the industry, such as oversaturation or intense competition?

AC: Certainly. I’ve observed some entrepreneurs blindly chasing trends without assessing their own capabilities or long-term value. This often leads to overcrowding in popular tracks as companies compete for short-term gains.

This concentration of resources is evident in competitions like the TERA-Award. Many projects focus on similar ideas, but only a small fraction will truly succeed. Overinvestment leads to market saturation and heightened competition.

For instance, in the past few years, the lithium battery market saw a boom in startups, but homogeneity in competition caused several large-scale bankruptcies, resulting in losses worth hundreds of billions of dollars.

36Kr: Amid fierce competition in the renewable energy market, are you optimistic about the future? How do you see the growth potential of this sector?

AC: Over the next decade, the energy landscape will undoubtedly undergo transformative changes. The potential for renewable energy investments remains immense. However, the industry is dynamic, and short-term overcrowding doesn’t equate to it being entirely “hot.” Success lies in identifying and addressing unmet needs in the market.

For example, in energy storage, there are critical challenges yet to be resolved, such as long-duration storage technologies, safety, and the economic viability of short-cycle recycling. Tackling such challenges represents significant opportunities.

36Kr: What is your outlook on the future of renewable energy? Do you believe there is still room for growth?

AC: I believe the renewable energy industry will continue to accelerate and become even more competitive. Technological breakthroughs that once took years now occur in significantly shorter timeframes.

With the industry moving faster, companies must adapt and innovate quickly. Opportunities still exist, but they demand swift action and foresight.

It’s not that good projects are becoming scarcer. Rather, the timelines for success are shrinking. Advances in technology, particularly artificial intelligence, have condensed what used to take years into mere moments, pushing companies to move at a faster pace.

36Kr: You mentioned AI is a critical factor. How do you view the intersection of AI and energy?

AC: AI’s impact on the energy industry is undoubtedly transformative. Traditionally, the energy sector has been slow to adopt new technologies and heavily reliant on manual processes and experience. AI changes the game by accelerating decision-making and optimization.

The energy sector generates massive amounts of data, from grid load management to energy distribution. Historically, these processes relied on static models and human expertise. AI can leverage vast datasets for dynamic and precise predictions, enabling more efficient operations.

Moreover, the energy sector’s digitalization has lagged behind expectations, leaving room for AI to drive sweeping changes. This digital transformation represents an opportunity to reimagine the sector from the ground up.

36Kr: What areas within renewable energy are Full Vision Capital focused on?

AC: Our priorities remain on hydrogen energy; SAF and other biofuels; carbon capture, utilization, and storage (CCUS); green methanol; and innovative energy storage solutions for medium- and long-term applications.

Additionally, we are exploring how digital and information technologies can enhance the energy sector’s efficiency. Many areas are still far behind in terms of digital adoption, which is why we’re actively pursuing solutions in this space.

36Kr: You’ve been deeply involved in the investment landscape for years and have witnessed the evolution of various industries. How do you view the current climate in the renewable energy venture capital ecosystem?

AC: The energy sector is fundamentally industrial in nature, so the conventional internet-focused investment mindset doesn’t apply here. Although the potential returns in energy are significant, it requires a different approach compared to tech or internet-based industries. Stable cash flow and long-term profitability are crucial.

Some investors expect energy companies to scale rapidly and may overlook short-term safety or operational losses. This approach is risky and unsustainable. I believe there’s substantial room for improvement in the local renewable energy venture capital ecosystem.

36Kr: What are Full Vision Capital’s plans for the next decade?

AC: Over the past decade, we’ve laid a strong foundation in climate tech investments, but there’s so much more to do. My goal is to see Full Vision Capital evolve from being an incubator to becoming a global investment platform that’s synonymous with climate tech innovation.

In the future, I hope any climate-focused startup—whether in Asia or globally—will think of Full Vision Capital as their first choice for support and partnership. We want to be a platform that not only provides funding but also creates an ecosystem of collaboration and innovation.

36Kr: What motivates you to continue on this journey?

AC: For me, the greatest reward is solving problems and seeing progress—not just in external metrics, but in the growth of our team and portfolio companies. Every day brings new challenges, and addressing them fuels my passion.

Ultimately, our mission goes beyond financial returns. It’s about leaving a positive legacy for the planet and the next generation. That’s what drives us forward.

This article was written by Xiao Xi and published at 36Kr.com