Exclusive: Muus Climate Partners raises $50M for second fund
Muus Climate Partners, a New York-based venture firm, raised $50 million for its Convergence Fund II, the firm exclusively tells Axios.
Why it matters: LPs aren't shying away from backing early-stage climate venture funds even as volatile markets shake out risk-averse investors in other sectors.
Details: The fund is Muus' first with outside LPs, MCP chairman Michael Sonnenfeldt tells Axios.
- Sonnenfeldt said most of Fund II's LPs consist of family offices and individual investors, with a handful of institutional participants. He declined to disclose specific investors.
Zoom out: Convergence Fund II has already invested in nine early-stage climate technology startups, and plans to back up to 25 early-stage companies with the new tranche.
- Fund II investments include renewable power provider BrightNight, the Lawrence Berkeley National Lab spinout Aepnus, and smart heat pump maker Harvest Thermal.
- It has also set aside capital in Fund II for follow-on funding through Series B rounds in up to seven companies, Sonnenfeldt says.
Flashback: Convergence Fund I backed 25 companies in total with check sizes ranging from $500,000 up to $1.5 million.
Editor’s note: The story and headline have been updated to correct the fund’s name, Muus Climate Partners.