Firm surpasses $1.2
billion in assets under management; changes name to Energize
Capital to reflect go-forward investment strategy
CHICAGO, July 27,
2023 /PRNewswire/ -- Energize Capital (formerly
Energize Ventures), a leading climate software investor, today
announced the close of its second growth fund, bringing the firm's
total capital commitments for its growth equity platform to
$300 million. This close brings
Energize's assets under management to $1.2
billion, surpassing $860
million in total committed capital from LPs. To reflect
this extension of strategy into growth equity and to position
itself for future growth, the firm has changed its name to Energize
Capital. Under the expanded strategy, the investment firm will
continue to support enduring climate software businesses as they
scale amidst significant economic tailwinds.
The official close of Energize's growth platform comes at a time
when growth capital is in high demand – especially for the climate
market. According to CTVC data, more than 2,000
early-stage[1] climate companies received institutional
funding in the last 24 months. If even just 10% of those companies
reach the growth stage, that means roughly 200 climate companies
will be looking to raise growth capital in the next 24 months – but
growth capital providers are in short supply. According to
Pitchbook[2], the demand-supply ratio of late-stage
funding is at a decade high, with just $1 of funding available for every $3.24 demanded.
"As the market for climate software matures and companies grow
into billion-dollar valuations, growth equity investors have access
to an abundant pipeline of enduring businesses in climate for the
first time," said John Tough,
managing partner of Energize Capital. "At Energize, we intend to be
the go-to partner for entrepreneurs as they scale – from venture
capital to growth equity and beyond."
"Our belief when founding Energize was that access to Invenergy,
its entrepreneurial culture, assets and people create a strategic
advantage for an investment platform in the rapidly scaling energy
transition space," said Michael
Polsky, chair of Energize's investment committee and CEO of
Invenergy, the leading sustainable energy and infrastructure
developer and an anchor investor in Energize. "The expansion of
Energize's strategy validates this approach, and we look forward to
continued partnership in this next phase of growth."
Energize's expertise is scaling asset-light digital climate
solutions that enable the new energy economy. With its new growth
equity strategy, Energize can continue providing capital and
operational support to enduring late-stage climate software
companies. To date, Energize has made seven investments out of its
growth funds, including a recently announced investment in PVcase's
$100 million round, as well as
follow-on investments in its venture capital portfolio companies
Sitetracker, DroneDeploy, and Aurora
Solar, which is one of the most valuable climate software
companies today.
"When Energize was founded in 2016, our guiding thesis was that
the transition to a sustainable economy represents a generational
transfer of capital, and that it would require digital technologies
to enable and accelerate scale," said Tough. "Seven years later,
our ambition remains unchanged, but the opportunity for climate
software has skyrocketed beyond expectations. For example, our
portfolio's software revenue has grown from $100 million to nearly $400 million over the past three years. Unveiling
our growth strategy and announcing the shift to Energize Capital
represents our commitment to scale our strategy to grow with our
entrepreneurs and the maturity of the space."
Across its four funds spanning venture capital and growth
equity, Energize is backed by a diverse set of LPs representing
strategic, institutional, impact and family office investors. In
addition to Invenergy, Energize LPs include CDPQ, CAPROCK, Credit
Suisse, HASI, Xcel Energy, and other institutional capital
providers.
To date, Energize has invested in 26 climate software companies
accelerating the transition to sustainable energy through its
venture capital and growth equity strategies. Energize closed its
first $165 million venture fund in
2018, followed by a $330 million
vehicle in 2021. In 2022, the firm added 12 new team members and
deployed $260 million across its
portfolio.
About Energize Capital
Energize Capital is a leading
climate software investor focused on scaling sustainable
innovation. Founded in 2016 and based in Chicago, to date Energize has funded 26
companies and deployed more than half a billion through its venture
capital and growth equity strategies. Anchored by founding
partner Invenergy, the firm is backed by strategic, institutional,
and impact LPs including CDPQ, Credit Suisse, SE Ventures
(corporate venture arm of Schneider Electric), GE Renewable Energy,
Xcel Energy, Caterpillar, HASI and more. For more information
on Energize, please visit www.energizecap.com.
Media Contact
Kelly
Lassing, Head of Marketing & Communications
klassing@energizecap.com
[1] Seed through Series B
[2] Pitchbook-NVCA Venture Monitor Q1 2023
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SOURCE Energize Capital
