- Pachamama Ventures, led by Karen Sheffield, focuses on climate tech startups to drive planetary resilience and strong financial returns.
- Sheffield’s experience with environmental degradation in Peru fuels her mission to invest in sustainable infrastructure for the future.
- Despite challenges, Pachamama Ventures targets top-quartile returns by focusing on high-growth climate tech companies.
From CEO to CO2: A Shift in Focus
Karen Sheffield, founder and managing partner of Pachamama Ventures, has shifted from her Fortune 100 executive roles to leading climate tech investments. After 16 years in executive finance at American Airlines, PepsiCo, and Visa, Sheffield is now focused on backing startups that tackle environmental challenges and build sustainable infrastructure.
“I firmly believe climate will stop being referred to as a sector or even a theme. Every job will be a climate job.”
The Climate Investment Challenge
The venture capital industry has historically been slow to support climate mitigation due to long sales cycles and hardware investments. Sheffield acknowledges this challenge but sees opportunities for long-term growth.
“One of the challenges is addressing investors’ concerns around risk/reward in climate tech. At Pachamama Ventures, we invest opportunistically in companies with outsized growth potential and target top-quartile returns.”
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Fundraising in a Tough Market
Sheffield launched Pachamama Ventures during a tough economic climate, where venture capital funding was slowing down. Despite these challenges, she secured the firm’s first close by focusing on mission-aligned investors.
“Fundraising in 2023 was probably the toughest challenge, but by focusing on the right investors, we made significant progress.”
Investing in Climate Innovation
Pachamama Ventures has already invested in two early-stage climate tech companies—one focused on biodiversity monitoring and another on alternative bio-based materials. Sheffield is optimistic about their potential to deliver both environmental and financial impact.
“We are determined to prove the thesis that you can invest for planetary resilience while earning above-market returns.”
Long-Term Vision for Pachamama Ventures
Sheffield’s short-term goal is to close her fund and invest in 25-30 climate tech startups. Long-term, she aims to build a legacy venture capital firm that drives climate innovation globally, with a focus on the Global South.
“My long-term goal is to build a legacy firm investing in climate innovation across many geographies, especially in the Global South.”
Karen Sheffield’s journey exemplifies a rising trend in venture capital: aligning financial returns with climate action. By backing climate tech startups, Pachamama Ventures is paving the way for a future where every job, and every investment, is a climate-conscious one.
