New Energize Capital name reflects broader investment strategy
(Bloomberg) — Energize Ventures, a venture firm that invests in climate-focused software, has raised $300 million for a new growth equity fund and is changing its name to Energize Capital to reflect a broader investment strategy.
The capital infusion for the Chicago-based firm’s second growth fund brings its total assets under management to $1.2 billion, it plans to announce Thursday. It comes at a time when the startup industry is reeling and venture capital funding for climate tech has dipped, after a recent boom.
Despite the industry slump, “the opportunity for climate software has skyrocketed beyond expectations,” said John Tough, managing partner at Energize.
Venture capital firms are on track to raise the lowest sum this year since 2017, according to Pitchbook. They are also funding fewer companies, particularly early startups. Energize said along with the new funding, it’s name change will reflect an increased focus on growth-stage investments, which typically involve more established companies. As the startups that received funding in recent years grow, “investors have access to an abundant pipeline of enduring businesses in climate for the first time,” Tough said.
Energize’s investments include Vilnius, Lithuania-based PVcase, which makes software to design solar projects and announced a $100 million funding round earlier this month. The firm’s portfolio also includes Aurora Solar, another solar software firm that said it hit a $4 billion valuation in February after closing a round led by Energize and Coatue Management.
–With assistance from Edward Ludlow.
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