On June 3, 2025, Chicago-based Energize Capital announced the close of its Ventures Fund III, raising $430 million to invest in early-stage climate solutions, focusing on digital technologies that drive energy and industrial transformation. Oversubscribed in 16 months with 80+ investors, 75% from outside the U.S., the fund surpasses its $330 million predecessor from 2023, bringing Energize’s assets under management to $1.8 billion. Ventures Fund III has backed five companies, including Tyba (battery software), Nira (grid interconnection), and Archive (retail resale platform), targeting asset-light solutions in industrial digitization, next-generation infrastructure, and energy transition. As AI and economic shifts like reshoring reshape industries, can Energize scale climate tech winners, or will market volatility challenge returns?

Fund Details and Investments

• Fund Scope: Targets Series A-C startups, investing $10-$20M per company in software-driven climate solutions, per John Tough.

• Key Investments:

• Tyba: Optimizes battery performance, enhancing storage efficiency by 15%, per company data.

• Nira: Streamlines grid interconnection, cutting project delays by 30% for renewable developers.

• Archive: Enables brands to scale resale, reducing textile waste by 20%, per Energize.

• Two undisclosed investments in industrial digitization.

• Investor Base: Includes Första AP-Fonden (AP1), Capricorn, Builders Vision, GE Vernova, and WEX Venture Capital, with 40% new LPs, per PR Newswire.

• Market Focus: Prioritizes grid modernization, circular economy, and manufacturing, driven by $1T global energy transition spending.

“Now more than ever, operators need specialist investors,” said Tough.

Builders Vision’s Scott Gerdes added, “Energize’s expertise drives market adoption.”

Read more: SkyNRG Secures €300M to Expand Sustainable Aviation Fuel Production

Strategic Context

Aligns with climate and economic trends:

• Swiss Glacier Collapse: 1.5°C warming underscores urgency for decarbonization tech.

• Africa’s ACSF: Carbon markets complement Energize’s infrastructure focus.

• SkyNRG’s SAF Investment: Energy transition investments mirror Fund III’s goals.

• Antibiotic Pollution: Clean tech reduces industrial impacts on water systems.

Challenges and Risks

• Market Volatility: Climate tech funding dropped 20% in 2024 ($100B vs. $125B in 2023), per PitchBook, pressuring returns.

• Scaling Barriers: Only 10% of 2,000 early-stage climate startups reach growth stage, needing $50B in capital.

• Competition: Firms like Breakthrough Energy ($555M fund) and Lowercarbon Capital ($550M) vie for similar deals.

• Policy Risks: U.S. deregulation, like $1.5B Army Corps cuts, may cut clean tech incentives, impacting 15% of projects.

Explore OneStop ESG Marketplace: Corporate ESG consulting

What’s Next?

Energize plans 10-15 more investments by 2027, targeting $500M in follow-on funding for portfolio firms. Tyba and Nira aim for 100% revenue growth by 2026, per Energize. The global climate tech market could hit $2T by 2035. A $10M research initiative with Invenergy will explore AI-driven grid solutions in 2026.

“This fund backs the next generation,” said Tough.

With 36 Gt CO2 emitted in 2024, Ventures Fund III could cut 0.5 Gt by 2030, per portfolio projections. Will Energize lead the energy transition, or face scaling hurdles?

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.