Aligned Climate Capital Closes $85M Venture Fund to Scale Clean Energy Companies
As global investment in the clean energy transition surged to a record-breaking $2.1 trillion in 2024, the momentum behind decarbonization efforts continues to gain traction. One of the latest developments in this space is the final closing of Aligned Climate Capital’s second venture fund, Aligned Climate Fund 2 LP (ACF2), which has successfully raised $85 million. This new fund is twice the size of Aligned’s first fund, a significant step toward supporting scalable clean energy and decarbonization solutions.
ACF2’s investment focus spans a broad range of sectors crucial to the clean energy transition, including renewable energy generation, efficient and resilient infrastructure, electric transportation, and sustainable land use. The fund attracted participation from several prestigious investors, including The Ford Foundation and The Rockefeller Foundation, as well as other leading pension funds, corporations, endowments, foundations, and family offices. Since its inception, Aligned Climate Capital has raised $145 million through its venture strategy, reflecting a strong commitment to accelerating the deployment of sustainable energy technologies.
Targeting Proven, Scalable Clean Energy Solutions
ACF2 is designed to invest exclusively in early- to mid-stage companies, from Seed through Series B funding rounds, that are actively scaling financeable clean energy solutions. These companies are focused on deploying technologies and services that lower energy costs, expand renewable energy adoption, and facilitate consumer access to clean energy, electric vehicles, and other climate-positive solutions.
To date, Aligned has made investments in nine companies through ACF2, including:
- BoxPower – a provider of modular microgrid solutions designed to deliver reliable, off-grid energy.
- BrightNight – a renewable power producer specializing in hybrid solar and storage projects.
- CarbonQuest – a company focused on carbon capture solutions for commercial buildings.
- ChargerHelp! – a platform that ensures the uptime and maintenance of electric vehicle charging infrastructure.
- EVenergi – a technology firm optimizing fleet electrification for public and private transport operators.
- NYLE Water Heating Systems – a manufacturer of advanced heat pump water heaters designed to improve energy efficiency.
- Port Wind – a company accelerating the development of offshore wind logistics and infrastructure.
- UtilityAPI – a platform streamlining energy data access for businesses and utilities.
- An unnamed geothermal company – details on this investment have yet to be publicly disclosed.
Addressing the Clean Energy Deployment Challenge
Peter Davidson, CEO of Aligned Climate Capital, emphasizes that the primary challenge in the clean energy transition is no longer technological innovation but rather large-scale deployment. “The clean energy transition isn’t a technology challenge; it’s a deployment challenge. The solutions needed to decarbonize the economy already exist, but scaling them requires capital, expertise, and market access,” Davidson stated.
Through its venture fund, Aligned is strategically investing in companies that are actively accelerating this transition by deploying proven, commercially viable clean energy technologies. These technologies are not just competing with fossil fuels but, in many cases, are already outpacing them in cost efficiency and performance. The fund’s investment approach ensures that capital is directed toward companies with a clear path to scaling operations, increasing market penetration, and delivering measurable environmental benefits.
Beyond Capital: Providing Strategic Support
While capital investment is a key component of Aligned’s strategy, the firm goes beyond financial backing to actively support its portfolio companies. Aligned assists its companies in securing additional financing, forging strategic market partnerships, and accelerating commercialization efforts. The firm’s investment philosophy is centered on identifying businesses that can achieve rapid scalability, increase revenues, and reach profitability in the near term.
Unlike traditional venture capital investments that often involve lengthy research and development (R&D) cycles, Aligned prioritizes companies with market-ready solutions. By doing so, the firm aims to generate strong, short-term financial returns while making a meaningful contribution to decarbonization and clean energy adoption.
Roy Swan, Head of Mission Investments at The Ford Foundation, underscored the broader societal impact of this transition, stating, “The transition to clean energy has the potential to generate new, high-quality jobs for hardworking families while laying the foundation for sustainable progress that will serve our communities for generations to come. We are excited to partner with Aligned as they invest in businesses that support families, strengthen communities, and protect the planet.”
ESG Integration and Impact Reporting
Aligned Climate Capital integrates environmental, social, and governance (ESG) considerations into its investment decision-making process. The firm provides detailed impact reporting to ensure that financial performance is aligned with long-term sustainability goals, emissions reductions, and positive community impact. This transparency allows investors to track both financial and environmental returns, reinforcing the alignment between profitability and sustainability.
One unique aspect of ACF2 is its commitment to philanthropy. Aligned has pledged 3% of the fund’s carried interest to three nonprofit organizations focused on climate justice and energy access:
- The Honnold Foundation – Expanding access to solar energy for underserved communities worldwide.
- The Climate & Clean Energy Equity Fund – Supporting grassroots organizations advocating for climate justice and equitable clean energy policies.
- Impact Capital Managers – Facilitating collaboration and education within the impact investing community.
Bridging Innovation and Large-Scale Deployment
Maria Kozloski, Senior Vice President at The Rockefeller Foundation, highlighted the importance of bridging the gap between innovation and deployment. “The Rockefeller Foundation is committed to advancing economic growth by supporting investments that bridge the gap between innovation and large-scale deployment. Aligned’s hybrid approach reduces risk while expanding clean energy access, making proven technologies more impactful for U.S. communities adapting to a changing energy landscape.”
Aligned Climate Capital’s second venture fund represents a significant milestone in scaling up clean energy adoption and accelerating decarbonization efforts. With a focus on funding companies that can deploy proven technologies at scale, ACF2 is well-positioned to drive meaningful change in the clean energy ecosystem. By combining capital investment with strategic support, ESG integration, and philanthropic commitments, Aligned is shaping a cleaner, more sustainable energy future while delivering financial returns for its investors.
