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Exclusive: Muus Climate Partners raises $50M for second fund

Mar 8, 2023
Illustration of the earth as a pie chart made up of various coins

Illustration: Sarah Grillo/Axios

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.

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