Photo by David Tejada

Inspired by the natural beauty he found when he moved to Boulder, Colorado, Robert Fenwick-Smith (MBA 1988) created Aravaipa Ventures, an unusual venture capital fund to support environmentally sustainable technology businesses in the state.

“When I set up Aravaipa Ventures [in 2008], I broke every law of what was done commonly by VCs at the time,” says Fenwick-Smith, who had private equity know-how but had never been involved in creating venture funds. That lack of direct experience gave him the freedom to create a fund specifically suited to the needs of the state’s sustainable tech sector in the earliest days of impact investing: an open-ended fund with a tight focus, hands-on support, and long-term vision. Patience is critical. “This isn’t software,” Fenwick-Smith explains. “I told my investors that most companies we’re going to go into will take at least 10 years before we get an exit.”

The payoff has been the success of companies like Lightning Systems. Founded in 2008 to turn heavy vehicles into fuel-saving hybrids, the company faced extinction as zero-emissions systems gained prominence in the late 2010s. With investor support, the company pivoted to electric powertrains. Two years later, Lightning Systems was a leader in electric buses and trucks, with fleet orders for companies such as Amazon and DHL “That is what patient investing and close work with companies allows,” Fenwick-Smith says of Aravaipa’s model. “And the end result is even better for the planet.”

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