Energize Capital, a prominent climate software investor, has successfully closed its second growth fund, securing a total of $300 million in capital commitments for its growth equity platform. This milestone brings the firm’s assets under management to $1.2 billion, with over $860 million in total committed capital from limited partners (LPs). As a reflection of its expansion into growth equity and in preparation for future growth, the firm has rebranded itself as Energize Capital.
With its extended strategy, the investment firm aims to support enduring climate software businesses as they capitalize on significant economic tailwinds and scale their operations.
The timing of the official close of Energize’s growth platform is opportune, considering the high demand for growth capital, especially in the climate market. According to CTVC data, more than 2,000 early-stage climate companies have received institutional funding in the past 24 months.
As many of these companies transition to the growth stage, there is a growing need for growth capital, which is currently in short supply. According to Pitchbook, the demand-supply ratio of late-stage funding has reached a decade high, with only $1 of funding available for every $3.24 demanded.
John Tough, managing partner of Energize Capital, expressed the firm’s commitment to become the preferred partner for entrepreneurs as they scale their businesses from venture capital to growth equity and beyond. Energize’s expertise lies in scaling asset-light digital climate solutions that drive the new energy economy. With its new growth equity strategy, the firm will continue to provide capital and operational support to late-stage climate software companies that demonstrate enduring potential.
Energize Capital’s investment approach has been validated by its partnership with Invenergy, a leading sustainable energy and infrastructure developer, and an anchor investor in Energize. Michael Polsky, Chair of Energize’s investment committee and CEO of Invenergy, affirmed the strategic advantage created by their access to Invenergy’s entrepreneurial culture, assets, and people in the rapidly scaling energy transition space.
Energize Capital has already made seven investments from its growth funds, including participation in PVcase’s $100 million funding round and follow-on investments in its venture capital portfolio companies Sitetracker, DroneDeploy, and Aurora Solar.
Energize Capital’s vision for the sustainable economy has been further bolstered by the remarkable growth of its portfolio’s software revenue, which has risen from $100 million to nearly $400 million in the past three years. The firm remains dedicated to scaling its strategy alongside entrepreneurs and the maturation of the climate software space.
The success of Energize Capital has been backed by a diverse set of LPs, representing strategic, institutional, impact, and family office investors. The firm’s commitment to supporting the transition to sustainable energy is evident through its investments in 26 climate software companies across its venture capital and growth equity strategies.
With a solid foundation and substantial resources at its disposal, Energize Capital is well-positioned to drive the expansion of the climate software market and play a pivotal role in the global energy transition.
