Energize Ventures Raises $330 M to Advance Sustainable Tech

Chicago-based Energize Ventures has announced the closing of a second flagship fund with total capital commitments of $330 million, aiming to invest in digital solutions with proven potential to optimize energy, critical infrastructure and sustainable industries.

Energize Ventures is an alternative investment manager that funds digital-first solutions accelerating the sustainable energy transition. The firm provides financial, operational and commercial support to back the leading entrepreneurs in the energy transition.

Today, the need for digital technologies enabling the sustainability revolution is at a record high. Investing in these technologies requires domain expertise to succeed, and the market is reliant on investors like Energize to signal and capitalize the expected winners at this pivotal intersection, said the company.

“Since we first launched Energize five years ago, we have seen the energy and industrial sectors undergo a massive digital transformation. The transition towards a more renewable and sustainable future is outpacing all expectations, and market participants are digitizing operations to address this new, emerging scale,” said John Tough, managing partner of Energize Ventures.

“As we continue into the next decade, we are grateful for the opportunity to partner with entrepreneurs and invest in the next-generation technologies that will shape a more sustainable tomorrow.”

In its debut fund, Energize deployed $165 million into 14 software-based companies serving energy and critical infrastructure sectors. With roughly 70 percent of its $330 million coming from institutional investors or family offices, Energize’s second fund will access a broader pool of capital to continue to identify and support entrepreneurs accelerating the energy transition.

Similarly to Fund I, the focus of Fund II is scaling and commercializing cutting-edge technologies and software across renewable energy, mobility, cybersecurity, battery storage, critical infrastructure and climate resiliency.

Today, Energize manages more than $700 million of committed capital from a diversified set of institutional, ESG-focused, strategic and family office investors. Alongside anchor investor Invenergy and returning Limited Partners such as CDPQ, SE Ventures (the corporate venture arm of Schneider Electric), GE Renewable Energy, and Hannon Armstrong, Fund II includes Credit Suisse, Xcel Energy, American Electric Power and Equinor Ventures, among other limited partners.

“We are at an inflection point in the global transition to sustainable energy,” said Michael Polsky, CEO at Invenergy, a leading global developer and operator of sustainable energy solutions and the anchor LP in both of Energize’s funds.

“The industry is changing at the pace of technology and asset owners and operators are looking to digital solutions that can support scalability and innovation. Invenergy provides real world insights to guide Energize in making the best investments, while also having a front-row seat to the new technologies coming to market in our industry – many of which we adopt as a customer.”

“In our ongoing pursuit to help cultivate a more sustainable future, CDPQ wants to play an active role in directing more capital towards solutions that enable the energy transition,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, one of Energize’s leading global institutional investors.

“The team at Energize has demonstrated the ability to identify leading energy and infrastructure software investments across the North American and European markets, and we continue to be impressed by their hands-on commitment to the commercialization of critical sustainable technologies.”

“Xcel Energy is proud to be investing in Energize to help support a venture capital ecosystem that encourages sustainability and the clean energy transition. This is an exciting time in the energy industry, and we welcome the opportunity to encourage innovation that will transform our industry and help deliver our promise of a 100 percent clean energy future,” said Brian Van Abel, Chief Financial Officer at Xcel Energy.

To date, Energize has deployed capital from Fund II into three investments, including Munich-based predictive battery analytics software TWAICE; Finite State, a pioneer of IoT device intelligence out of Columbus, Ohio; and Urbint, which leverages AI to protect critical infrastructure and is headquartered in New York.