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Exclusive: Anzu Partners closes $200 million venture fund

Animated illustration of a charging battery stylied as a neon light.

Illustration: Aïda Amer/Axios

Venture capital firm Anzu Partners closed its third fund at $200 million, the firm says.

Why it matters: It's a challenging time to raise funds to back early-stage highly technical startups, compared to the heights of 2021.

Details: Anzu Partners said the fund, its largest closed to date, brings its assets under management to about $1 billion.

  • Fund III has already deployed $123 million to 12 companies, including three energy-storage startups — AM Batteries, e-Zinc, and South 8 Technologies.
  • The investors write checks at the earliest seed stage, like with EnCharge AI, but have funded revenue-generating, more mature companies like Arduino.
  • The firm, which is distributed, said limited partners in the new fund include new and returning public and private institutions, single and multifamily offices, and accredited investors globally.

Big picture: The amount of venture capital that went into climate-tech startups in the first half of 2023 dropped compared with last year, particularly for generalist funds.

  • But government support from the Biden administration for energy technologies has helped to maintain momentum in the sector.
  • Anzu says more than $117 million in government funding and grants has been awarded to Anzu Partners' portfolio companies.
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