Climate solutions-focused multi-stage investor Energize Capital announced today that it has raised $430 million in capital commitments at the close of its Ventures Fund III, aimed at investing in digital technologies accelerating the energy transition.

Despite a difficult climate investing environment, Energize said that the fund was oversubscribed, and was raised in just 16 months, drawing more than 80 investors, including approximately 75% institutional investors, mostly based outside the U.S. The fund is more than 30% larger than its predecessor Ventures Fund II, which closed at $330 million in 2023.

Ventures Fund III backs early-stage companies focused on scaling energy and industrial transformation through digital and software-enabled solutions. The fund backs asset-light climate solutions, with a particular focus on companies operating in the industrial digitization, next generation infrastructure and energy transition sectors.

To date, the fund has made five investments, including battery software optimization platform Tyba, grid interconnection software platform Nira, and technology-enabled retail resale platform Archive.

According to Energize, the fund closing comes as technologies like AI are redefining capital processes, while economic changes including the reshoring of manufacturing, evolving global supply chains, and the accelerating energy transition are reshaping critical infrastructure, creating significant opportunities in areas such as grid interconnection, next-generation manufacturing, and the circular economy, with the fund looking to scale companies in these sectors.

John Tough, Managing Partner at Energize Capital said:

“Now on our third ventures fund, the Energize team has been investing in climate technologies and solutions across several cycles, and we’ve experienced firsthand how this space has evolved in both market size and complexity. Today more than ever, operators need specialist investors with deep domain expertise and operational know-how to help them scale their solutions and achieve enduring growth. We are excited to back the next generation of entrepreneurs and are honored to be supported by a group of world-class Limited Partners who align with our mission of investing in climate solutions with ambition.”

Chicago-based Energize Capital was launched in 2016. The new capital raise brings Energize’s total assets under management to over $1.8 billion.