In the latest episode of the Investing in Impact podcast, I sit down with Josh Kaufman, CEO and Co-Founder of Khasma Capital, to explore how his team is rewriting the rulebook for early-stage climate infrastructure investing.
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Formerly known as Nexus Development Capital, Khasma Capital has rebranded with a renewed mission: to empower development teams building the next generation of low-carbon infrastructure.
As the climate crisis intensifies and the demand for scalable solutions grows, Khasma is stepping into a crucial space—funding and accelerating the infrastructure that most investors deem “too early” or “too complex.”
The Challenge: Bridging the Infrastructure Capital Gap
Climate technology is booming. From carbon capture and renewable fuels to waste-to-energy and geothermal, entrepreneurs are innovating rapidly. But there's a persistent gap—moving from pilot or demonstration projects to fully scaled infrastructure deployments.
This "valley of death" is especially pronounced in hard-to-abate sectors and capital-intensive industries. Traditional institutional investors often won’t touch these projects until they’re fully de-risked. Meanwhile, venture capital is more focused on software, platforms, or IP—not the physical, operational build-out.
That’s where Khasma Capital comes in.
“We saw incredible innovation happening, but many of these developers simply couldn’t get the capital or operational support they needed to reach commercial scale,” Josh shared during the episode. “So we designed Khasma to meet that exact need.”
A Hybrid Model: Capital + Strategic Support
Khasma isn’t just writing checks. Their model is hybrid by design—combining flexible, early-stage development capital with deep operational and strategic support.
Josh and his team bring decades of experience as investors and operators in the climate and infrastructure sectors.
That experience allows them to work shoulder-to-shoulder with founders, helping them validate their business model, navigate regulatory complexity, hire strategically, and prepare for commercial scaling.
“We often act as a true partner to development teams,” Josh explains. “That means getting into the weeds—not just as investors, but as advisors, supporters, and connectors.”
Sectors of Focus: Circularity Meets Emerging Energy
Khasma is laser-focused on high-impact, undercapitalized sectors that are vital to climate transition but often overlooked by traditional funding sources. These include:
- Circular Economy Solutions like textile recycling, cement alternatives, waste upcycling, and mineral recovery.
- Emerging Energy Transition Technologies such as long-duration energy storage, industrial heating decarbonization, renewable heating oil, and clean marine fuels.
Each portfolio company reflects a strategic thesis: these aren’t just technologies—they’re scalable infrastructure systems with long-term climate, social, and economic value.
For example, Khasma is backing projects that:
- Convert industrial waste oil into clean marine fuel
- Recycle solar panels to extract valuable commodity materials
- Build North America’s first fleet of zero-emission maritime vessels
- Produce high-energy gases through innovative oxy-fuel systems
These are not MVPs. These are mission-critical facilities, fleets, and supply chains.
What Khasma Looks for in a Partner
Khasma’s investment criteria are grounded in four pillars:
- Business Model – A clear pathway to profitability and strong unit economics.
- Technology Maturity – Demonstrated progress beyond major engineering hurdles.
- Commercial Readiness – Defined projects and development workstreams.
- Team Strength – A capable founding team, with willingness to collaborate and grow.
Josh emphasized that Khasma also helps augment teams, whether by filling knowledge gaps or bringing in additional leadership as needed.
“Great climate infrastructure doesn’t get built by capital alone. It takes exceptional people, strategic alignment, and deep operational insight.”
Looking Ahead: The Next Decade of Climate Infrastructure
As the episode wraps, Josh shares his vision for what the next 10 years could look like: a surge in climate infrastructure that is distributed, resilient, and regenerative—driven by bold developers and backed by aligned capital.
He believes Khasma’s role is to be an enabler—to help developers cross the chasm from idea to infrastructure. And in doing so, Khasma isn’t just investing in projects—they’re investing in a more sustainable future.
