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Third Sphere is a climate-focused venture capital firm founded in 2013, initially known as Urban Us. The firm was established to address climate change by reimagining urban environments and has since expanded its focus to include various sectors requiring systemic change. Headquartered in the United States, Third Sphere has developed a portfolio of nearly 100 companies, emphasizing innovative approaches to tackle climate challenges, particularly through hardware-enabled solutions.
In 2021, the firm rebranded from Urban Us to Third Sphere to reflect its broader climate mandate. The firm’s assets under management (AUM) include its latest fund, Fund IV, which closed in 2024. Although the exact size of Fund IV is not publicly disclosed, earlier funds have been reported to be around $100 million. Third Sphere operates primarily in the United States, but its geographical focus also extends to Switzerland, Germany, Israel, the United Kingdom, and South Africa.
Third Sphere invests in early-stage companies, primarily at the Pre-seed and Seed stages, with initial investments ranging from $250,000 to $1 million. The firm targets sectors such as climate, energy, healthcare, agtech, water-tech, sustainable fashion, circular economy, and clean energy. Approximately 80% of their portfolio consists of hardware-enabled solutions, often integrated with software components, which distinguishes them from many software-heavy peers.
The firm’s investment strategy emphasizes rapidly scalable technologies that address systemic challenges in energy, infrastructure, transportation, water, and agriculture. Third Sphere often serves as the first institutional check for startups, facilitating introductions to subsequent lead investors in about 50% of their portfolio company raises. Their unique model, termed 'Seedstrapping,' combines small equity checks with AI-driven operational support and alternative non-dilutive financing, helping portfolio companies achieve $1 million in annual recurring revenue (ARR) or $10 million in pre-orders within six months.
Third Sphere has built a diverse portfolio of nearly 100 companies that address various climate challenges. Notable portfolio companies include:
These companies exemplify Third Sphere's commitment to investing in hardware-enabled climate solutions that drive systemic change across multiple sectors.
Stonly Baptiste - Co-Founder; has extensive experience in urban technology and climate solutions, previously involved with Urban Us.
Yana Andrea Klimova - Co-Founder; brings expertise in sustainable development and investment strategies.
Shaun Abrahamson - Co-Founder and Managing Partner; leads the investment strategy and has a strong background in climate-focused ventures.
Miela Mayer - Co-Founder; focuses on operational support and portfolio management.
Shilpi Kumar - Co-Founder; specializes in technology integration and innovation within the portfolio.
Roscel Asuncion - Co-Founder; contributes to strategic partnerships and business development efforts.
When pitching to Third Sphere, founders should include a clear explanation of their hardware-enabled solution and its potential impact on climate change. Highlighting any existing traction or partnerships can strengthen the pitch.
In 2024, Third Sphere closed Fund IV, further solidifying its commitment to supporting climate-focused startups. The firm has been active in publishing blog posts discussing its impact over the past 12 years and exploring the influence of AI on business strategy.
Third Sphere continues to engage with the climate and venture capital communities, reflecting its dedication to thought leadership and sharing insights on the evolving landscape of climate technology.
What are Third Sphere's investment criteria?
Third Sphere focuses on early-stage companies at the Pre-seed and Seed stages, investing between $250,000 and $1 million. They prioritize sectors such as climate, energy, healthcare, agtech, water-tech, sustainable fashion, circular economy, and clean energy.
How can startups apply or pitch to Third Sphere?
Startups seeking funding can reach out through the contact form on Third Sphere's website. They emphasize connecting founders with resources and support to enhance their chances of success.
What makes Third Sphere different from other venture capital firms?
Third Sphere distinguishes itself by focusing on hardware-enabled climate solutions and employing a unique funding model called 'Seedstrapping.' This model combines small equity checks with AI-driven operational support and alternative non-dilutive financing, enabling portfolio companies to achieve significant milestones quickly.
What is Third Sphere's geographic scope?
The firm primarily invests in the United States but also supports companies in Switzerland, Germany, Israel, the United Kingdom, and South Africa.
What is Third Sphere's post-investment involvement like?
Third Sphere actively engages with its portfolio companies, providing operational support and facilitating introductions to subsequent lead investors. Their model aims to help startups reach $1 million in ARR or $10 million in pre-orders within six months.
What is the typical check size for Third Sphere?
Third Sphere typically invests between $250,000 and $1 million in its portfolio companies, focusing on early-stage investments.
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