Counteract Pitch Deck: Slide-by-Slide Breakdown

The Anatomy of a Thematic Climate Fund Deck

Counteract’s 12-slide deck is a masterclass in thematic fund positioning. In an era where 'Climate Tech' has become a broad and sometimes diluted term, Counteract narrows its focus to Carbon Dioxide Removal (CDR). This teardown examines how they used this specialization to raise $42M for their first fund, Counteract One.

Slide 1: Title and Context

The cover slide is minimalist, titled 'Counteract One.' It includes a specific note: 'For information only, shared with Business Insider February 2023.' This indicates the deck was used during a period of high-profile fundraising and public relations efforts. The branding is clean, utilizing a high-contrast yellow and white palette that persists throughout the presentation.

Slide 2: Legal Disclaimers

As a venture capital fund deck, Slide 2 is a dense legal disclaimer. It identifies Counteract Partners Limited as an appointed representative of MJ Hudson Advisers Limited, authorized and regulated by the Financial Conduct Authority (FCA). It explicitly states that the fund is targeted at 'Qualified Investors' and 'Investment Professionals,' emphasizing the regulatory compliance required for private fund marketing in the UK and EU.

Slide 3: The Executive Summary

Slide 3 serves as a high-level summary of the fund’s value proposition. It hits several critical data points immediately:

The Carbon Removal market is projected to be a $1+trn industry by 2050 . · The team claims to be the first dedicated Carbon Removal investment team globally . · The fund is a £35m EU Article 9 SFDR fund (though the catalogue facts indicate they ultimately raised $42M). · They achieved a £15m first close in Dec 2022 . · The portfolio already contains 12 warehoused investments .

This slide is effective because it answers the 'Why now?' (market size), 'Why us?' (first dedicated team), and 'Is this real?' (warehoused deals and first close) questions in one view.

Slide 4: The North Star Metric

Slide 4 is a 'vision' slide. It states a singular, bold goal: 'Counteract One aims to catalyse 5 gigatonnes of CO2e removal by 2050 through early stage investments in a $1tn+ growth market.' By quantifying their impact goal (5Gt), they move beyond vague sustainability claims into measurable climate science. Footnote 1 clarifies this is based on an average 0.5Gt impact from 10 successful companies.

Slide 5: The Market Gap (The 'Why')

This slide uses IPCC scenarios to illustrate the 'Carbon Gap.' It shows that current policies and pledges are insufficient to meet 1.5°C or even 2°C targets. The most striking visual is the 'Today’s removal efforts' box, where a single dot represents 1Mt of CO2. The 2022 removal is estimated at 2.5Mt, which the slide notes is only 0.025% of the total need . This creates a powerful sense of urgency and a clear 'undersupplied' market signal for investors.

Slide 6: The Team

The team slide emphasizes experience over just academic credentials. They highlight 70+ years as entrepreneurs and 60+ completed deals . The team is led by Managing Partners Andrew Shebbeare, Andy Bonsall, and Matt Isaacs. The inclusion of an In-House Counsel (Jo Brass) and a Research Analyst (Poppy Russell) suggests a fund that is built for operational and technical rigor, not just capital deployment.

Slide 7: The Investment Universe

Slide 7 provides a visual taxonomy of the CDR sector. They categorize their 'Pathways Open for Investment' into six buckets: Oceans, Forests, Soil, Biomass, Direct Air Capture, and Rocks . Under each bucket, they list specific technologies like 'Alkalinization,' 'Biochar,' and 'Accelerated weathering.' This demonstrates to LPs that the fund has a comprehensive map of a complex technical landscape.

Slide 8: Deep Dive Theses

To further prove their expertise, Slide 8 offers 'Example Investment Theses' for Soil and Direct Air Capture (DAC). For Soil, they identify 'Current MRV (Monitoring, Reporting, and Verification) expensive or inaccurate' as a key insight. For DAC, they note that 'Full system mass-energy balance considerations' are required. This level of detail is designed to reassure LPs that the GPs understand the technical hurdles of the companies they back.

Slide 9: Investment Approach and Principles

This slide outlines the 'Guiding Investment Principles.' Key takeaways include:

Stage: Seed/pre-seed. · Geography: Global focus with European tilt. · Incentives: Carry tied to CO2e impact. · Compliance: SFDR Article 9 and PRI alignment.

The mention of 'Carry tied to CO2e impact' is a sophisticated LP-GP alignment tool that is becoming a gold standard in impact investing.

Slide 10: The Dealflow Funnel

Slide 10 is perhaps the most important slide for institutional LPs. it shows the 'Broadly Sourced Dealflow' from Feb '21 to Nov '22. 400+ deals were evaluated , 210+ qualified, 49 validated, 16 diligenced, and 12 invested. It also breaks down origination sources (43% Community, 17% Accelerators) and why deals were declined (56% failed the 'Self-sustaining' criteria). This transparency builds immense trust in the fund's discipline.

Slide 11: The Current Portfolio

The final content slide lists the 12 companies already in the portfolio. This includes:

Adaptavate: Drop-in replacement for Gypsum plasterboard. · Mote: Waste biomass to carbon negative hydrogen. · Vesta: Using coastal systems to weather carbon-removing sand. · Parallel Carbon: DAC solution combining mineral carbonation with electrochemistry.

By showing the actual companies, Counteract moves from theory to practice, proving they can win deals in a competitive, technical market.

What Counteract Does Well

Counteract’s deck is exceptionally strong in its thematic clarity . They do not try to be everything to everyone; they are the 'Carbon Removal' fund. This specificity allows them to use technical language and metrics (Gt of CO2e, MRV, SFDR Article 9) that would be out of place in a generalist deck but are highly persuasive to sophisticated climate LPs.

The transparency of the dealflow funnel (Slide 10) is a standout feature. Most first-time funds struggle to prove they have a 'proprietary' edge. By showing exactly where their 400+ leads came from and why they rejected most of them, Counteract demonstrates a professionalized investment process that rivals much larger, established firms.

What is Missing

While the deck is excellent for a fund raise, it omits a few key financial details often requested by LPs:

Fund Terms: There is no mention of management fees or the specific hurdle rate, though 'carry tied to impact' is noted. · Target Returns: While the market size is mentioned, there are no explicit target IRRs or multiples for the fund. · Exit Strategy: The deck focuses heavily on the 'entry' and 'impact' but does not detail how these early-stage CDR companies will eventually reach liquidity (e.g., strategic M&A from oil majors or IPOs).

What Founders and GPs Should Copy

1. The 'Warehoused Deal' Strategy: If you are raising a fund, having 10-12 deals already 'in the bag' (or at least identified and terms agreed) is the single best way to close LPs. It turns a 'vision' into a 'product.'

2. Quantified Impact: Don't just say you want to save the planet. Counteract’s '5 gigatonnes by 2050' gives LPs a specific number to track. This makes the impact feel as rigorous as the financial return.

3. The Taxonomy Slide: Slide 7 (Pathways Open for Investment) is a brilliant way to educate the investor while simultaneously proving your expertise. It frames the entire sector through the GP's lens, making it harder for the LP to look at competitors who don't have as clear a map.