(Bloomberg) —
The climate tech investment firm Energize Capital has raised $430 million for a new fund targeting early-stage startups working on projects like new batteries and software for the electric grid.
The funding will bring the Chicago-based firm’s total assets under management to more than $1.8 billion, Energize announced Tuesday. While much of the venture capital and startup world has recently struggled with funding shortfalls, there’s been intense interest in how to build out enough energy — ideally, sustainable energy — to power a new wave of artificial intelligence technology.
The company aims to harness both the surge in demand and the availability of new technologies. “There are amazing megatrends — data centers, AI, energy transition, reshoring,” that the firm hopes to take advantage of, said John Tough, managing partner at Energize, in an interview on Bloomberg Television.
The firm will invest internationally, he added, but will primarily focus on the US. “The US is still the innovation hotbed for the energy transition,” Tough said. “This is the economy where we are looking for next-generation tools to serve AI.”
Energize Capital is seeking to back new energy companies, as well as startups that will make manufacturing more efficient and build out US infrastructure.
The new fund has invested in three startups so far. One is Tyba Energy Inc., which makes software that allows batteries to optimize energy use. Another is Archive Resale Inc., which works with brands to help customers resell products. It’s also bet on Nira Inc., a software platform for electric grids.
The latest investment is Energize’s fifth fund overall, and its third focusing on venture investing. The firm’s backers include WEX Venture Capital, GE Vernova Inc., Builders Vision and UBS Group AG.
(Updates with quotes from TV interview starting in the third paragraph.)
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