VC heavyweight raises $1.36B for latest growth-stage fund
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Energy Impact Partners closed its third growth-stage fund at $1.36 billion, the VC and investment heavyweight's largest to date.
Why it matters: It's a testament to capital backing solutions to rising power demand despite a tough funding environment.
- EIP founder Hans Kobler said it's an "unprecedented" moment at the intersection of consumption growth, innovation, and turmoil.
- "The opportunity set is much larger than ever before," he told Axios.
EIP is a prominent backer of energy and climate tech companies via venture capital and other support, and works with utilities.
The big picture: Power and industrial giants are seeking tech to meet and manage the need for new electrons to feed AI and wider electrification of the economy.
- The fund, 40% larger than its predecessor, will extend the firm's "collaborative model" that connects entrepreneurs with established utilities and industrial companies, EIP said.
- For instance, utility giants Southern Company and Xcel Energy are both among the 75+ limited partners in the new fund.
State of play: Kobler said the fund backs companies that can help with reliability, "transformative, clean solutions," affordability, and better communication between supply and demand centers.
- "It's an all-hands-on-deck question that we are trying to solve right now," he said, calling the fund about "proven technologies and business models ready to scale."
Zoom in: He said roughly a quarter of the "Flagship Fund III" money is already invested or committed, and that it's backing nine companies so far. They include ...
- Convey (formerly Message Broadcast), a communications platform for the utility and energy infrastructure sectors.
- Site 2020, a traffic and worksite management company that Kobler notes can help enable transmission and distribution projects.
- GridBeyond, a platform for managing distributed and flexible energy resources.
- Quilt, a home heat pump and energy management company.
Catch up quick: EIP, which provides VC and other types of finance, has around $4.5 billion under management.
- Its portfolio includes around 80 companies spanning grid tech, batteries, low-carbon industrial materials, nuclear, hydrogen, and lots more.
The bottom line: "We are facing unparalleled growth and need unprecedented innovation to meet this opportunity," Kobler said in a statement.
