MassMutual Ventures (MMV), the venture capital investment arm of financial services and insurance company MassMutual, announced the launch of Climate Technology Fund II (CTF II), a $150 million venture capital fund targeting early-stage companies applying climate technology and artificial intelligence to real assets.

According to MMV, the new fund will focus on the intersection of several long-term trends, including the rising demand for clean and reliable energy, increasing physical and operational risk across real assets, and the growing adoption of industry-specific AI applications.

The new fund will invest in North America-based companies developing physical and digital technologies aimed at helping owners and operators of real assets improve performance, reduce costs and manage risk, including across energy infrastructure, real estate and natural resources.

The fund will target companies capable of translating technology into measurable economic value for asset owners and operators, drawing on the firm’s climate and energy expertise and MassMutual’s investment experience in large, asset-intensive markets, the firm added.

Timothy Krysiek, Managing Partner of MassMutual Ventures Climate Technology Fund, said:

“Surging power demand, unprecedented infrastructure investment, and rising physical climate risk are creating massive opportunities for entrepreneurs applying technology to real assets. Startups improving how energy-related infrastructure is developed, financed, operated, and protected will benefit from powerful macro tailwinds. But the path to commercialization requires deep sector expertise, connections to asset owners and operators, and customized capital solutions.”

MMV’s Climate Technology Fund strategy targets early-stage companies that measure, mitigate or manage the effects of climate change, with a focus on opportunities at the intersection of climate technology, artificial intelligence and real assets.

MMV’s first Climate Technology Fund, launched in 2023, has invested in 16 companies focused on clean power, energy systems, digital infrastructure and climate adaptation. With the launch of the new fund, MMV has now committed a total of $300 million to invest in climate technology.

Doug Russell, Head of MassMutual Ventures, said:

“Climate investing is evolving from broad thematic exposure toward specialized strategies that understand where technology creates tangible value in large, complex industries. CTF II is designed for that next phase.”