Energize Capital Raises $430M To Boost Climate Tech

Energize Capital, a prominent climate-tech investment firm, has successfully closed its Ventures Fund III with $430 million in capital commitments, marking a major step forward in accelerating the development and deployment of digital climate solutions. This significant raise demonstrates the increasing confidence institutional investors place in Energize’s approach to tackling the climate crisis through early-stage, software-led innovations. With this latest closing, Energize Capital’s total assets under management (AUM) exceed $1.8 billion, further cementing its position as a leading investor in the climate-tech space.

Ventures Fund III is designed to support early-stage companies at the intersection of technology and climate, focusing specifically on digital-first and asset-light business models that can scale rapidly and efficiently. The fund targets areas such as energy transition, industrial digitization, and infrastructure innovation—sectors that are undergoing massive transformation and are ripe for disruption through advanced software and data-driven solutions.

John Tough, Managing Partner at Energize Capital, emphasized the need for specialist investors with sector expertise to help climate-tech entrepreneurs scale their operations. “Operators need specialist investors with deep domain expertise and operational know-how to help them scale their solutions,” he said. “We are excited to back the next generation of entrepreneurs.”

Energize’s investment thesis revolves around the belief that digital tools are essential to unlocking scalable and capital-efficient growth in climate-related sectors. As the global push toward decarbonization intensifies, traditional energy, manufacturing, and infrastructure systems are under pressure to become more adaptive, efficient, and sustainable. Software solutions offer a pathway to enable this transition, allowing companies to optimize performance, reduce emissions, and manage complex systems more effectively.

The strong LP backing for Fund III underscores the increasing demand for focused, tech-driven climate investments. The fund has attracted capital from a diverse range of institutional investors, including notable names such as Första AP-Fonden (AP1), CDPQ, GE Vernova, and Builders Vision. Other participants include Capricorn, Keeling Capital, Reference Capital, Keysight Technologies, WEX Venture Capital, and returning investors like UBS and WEC.

Scott Gerdes, Director of Private Investments at Builders Vision, highlighted the strategic value Energize brings to the table, stating, “Energize’s in-depth research, valuable industry connections, and hands-on team are crucial for driving broader market adoption.”

Energize Capital has already begun deploying capital from Ventures Fund III, backing several innovative companies that exemplify the fund’s investment priorities. Among the early investments are Tyba, a company developing battery optimization software to improve storage efficiency; Archive, a tech platform designed to facilitate fashion resale programs and promote circular economy practices; and Nira, which provides grid interconnection software that supports energy developers in integrating new clean energy sources into the grid more effectively.

These companies reflect Energize’s commitment to investing in scalable digital platforms that not only generate financial returns but also deliver measurable environmental impact. The focus on asset-light models also allows for rapid iteration and growth without the significant capital intensity traditionally associated with the climate and energy sectors.

Energize Capital’s strategy is well-aligned with the shifting needs of the energy and industrial landscape, where digital innovation is increasingly seen as a key enabler of the energy transition. By providing both capital and strategic guidance, the firm plays a critical role in helping startups navigate complex market dynamics, regulatory environments, and operational challenges.

With Fund III, Energize aims to continue identifying and nurturing the most promising digital climate innovators, supporting them from early stages through growth. This aligns with a broader industry trend where climate-tech investors are moving beyond hardware-heavy solutions and instead prioritizing software and data intelligence as the drivers of long-term transformation.

As climate change remains one of the most pressing global challenges, the need for scalable, technology-driven solutions is more urgent than ever. Energize Capital’s latest fund not only reinforces the potential of digital-first climate technologies but also highlights the growing ecosystem of investors, entrepreneurs, and institutions committed to building a more sustainable and resilient future. Through Ventures Fund III, Energize is poised to make a lasting impact on how the world addresses climate and industrial challenges—digitally, efficiently, and at scale.