Activate Capital, a venture and growth investor in climate technologies, is targeting $500 million for its third fund, just two years after closing on the same amount for its sophomore effort.
The San Francisco-based firm comes to market in the midst of a fundraising boom for climate-related venture funds, with 27 funds worldwide closing on a combined $7.1 billion in the first nine months of this year, according to exclusive Venture Capital Journal research. This is a jump from the $5.2 billion raised by 26 VC climate funds in 2023 and $3.5 billion raised by 13 climate venture funds in 2022.
(Click here to see a detailed list of all climate VC funds raised since the start of 2022.)
Activate is being assisted in the fundraising effort by Brooklands Capital Strategies in the US and TAG Advisors Limited in the UK, according to a regulatory filing. Both previously helped with Fund II.
Activate’s second fund targeted $300 million, but it closed on $500 million in October 2022, as Venture Capital Journal previously reported. Fund II was backed by 30 institutional investors, with commitments from “limited partners from across the US, Europe and South America, including foundations, sovereign wealth funds, pension funds, family offices, strategic investors and funds of funds,” the firm said in a statement at the time.
The firm did not disclose the names of Fund II’s investors, but they included Texas Municipal Retirement System (with a commitment of $100 million), Clwyd Pension Fund ($13 million), Environment Agency Pension Fund (£10 million) ($13.2 million; €11.9 million), and Allstate Investments and the John D and Catherine T MacArthur Foundation, which each committed an undisclosed amount, according to fundraising data from affiliate title Buyouts.
As of March 31, Fund II had called down about 72 percent of its commitments and had generated a TVPI multiple of 1.11x, an IRR of 8.43 percent and DPI of zero, according to performance data from Texas Municipal.
Performance data for Activate’s first fund was unavailable. That vehicle closed on $157.3 million in 2018, short of its $300 million target, according to Buyouts. LPs in Fund I included Alaska Permanent Fund, which committed $25 million.
Activate “invests in companies addressing climate change holistically, across technology led transitions in energy, transportation, logistics, cybersecurity and industrial systems,” it said in the statement about its second fund.
The firm was founded in 2017 by veteran cleantech investors Raj Atluru, Anup Jacob and David Lincoln, who continue as managing partners. All three are listed as executive officers of Fund III in the regulatory filing.
Atluru previously co-founded and was managing director of Silver Lake Kraftwerk, Jacob was previously a founder and partner at sovereign wealth fund Mubadala Capital and Lincoln previously founded and was managing partner of Element Partners.
VCJ sought comment from Activate about Fund III but did not hear back as of press time.
Activate Capital, a venture and growth investor in climate technologies, is targeting $500 million for its third fund, just two years after closing on the same amount for its sophomore effort.
The San Francisco-based firm comes to market in the midst of a fundraising boom for climate-related venture funds, with 27 funds worldwide closing on a combined $7.1 billion in the first nine months of this year, according to exclusive Venture Capital Journal research. This is a jump from the $5.2 billion raised by 26 VC climate funds in 2023 and $3.5 billion raised by 13 climate venture funds in 2022.
(Click here to see a detailed list of all climate VC funds raised since the start of 2022.)
Activate is being assisted in the fundraising effort by Brooklands Capital Strategies in the US and TAG Advisors Limited in the UK, according to a regulatory filing. Both previously helped with Fund II.
Activate’s second fund targeted $300 million, but it closed on $500 million in October 2022, as Venture Capital Journal previously reported. Fund II was backed by 30 institutional investors, with commitments from “limited partners from across the US, Europe and South America, including foundations, sovereign wealth funds, pension funds, family offices, strategic investors and funds of funds,” the firm said in a statement at the time.
The firm did not disclose the names of Fund II’s investors, but they included Texas Municipal Retirement System (with a commitment of $100 million), Clwyd Pension Fund ($13 million), Environment Agency Pension Fund (£10 million) ($13.2 million; €11.9 million), and Allstate Investments and the John D and Catherine T MacArthur Foundation, which each committed an undisclosed amount, according to fundraising data from affiliate title Buyouts.
As of March 31, Fund II had called down about 72 percent of its commitments and had generated a TVPI multiple of 1.11x, an IRR of 8.43 percent and DPI of zero, according to performance data from Texas Municipal.
Performance data for Activate’s first fund was unavailable. That vehicle closed on $157.3 million in 2018, short of its $300 million target, according to Buyouts. LPs in Fund I included Alaska Permanent Fund, which committed $25 million.
Activate “invests in companies addressing climate change holistically, across technology led transitions in energy, transportation, logistics, cybersecurity and industrial systems,” it said in the statement about its second fund.
The firm was founded in 2017 by veteran cleantech investors Raj Atluru, Anup Jacob and David Lincoln, who continue as managing partners. All three are listed as executive officers of Fund III in the regulatory filing.
Atluru previously co-founded and was managing director of Silver Lake Kraftwerk, Jacob was previously a founder and partner at sovereign wealth fund Mubadala Capital and Lincoln previously founded and was managing partner of Element Partners.
VCJ sought comment from Activate about Fund III but did not hear back as of press time.
