MassMutual doubles climate tech commitment with second $150m fund

MassMutual Ventures, the corporate VC arm of US insurance company MassMutual, has launched a second $150m climate technology fund, doubling its total commitment to $300m, as it looks to back early-stage companies applying climate technology and artificial intelligence to real assets.

The new fund, titled Climate Technology Fund II (CTF II), will invest primarily in North American startups developing physical and digital technologies for energy infrastructure, real estate and natural resources. The fund is looking for companies that can help asset owners and operators improve performance, reduce costs and manage operational or physical risks.

The new vehicle follows MassMutual Ventures’ first Climate Technology Fund that was launched in 2023. That fund has invested in 16 companies across areas including clean power, energy systems, digital infrastructure and climate adaptation.

CTF II will continue MassMutual Ventures’ focus on sectors where technological improvements can produce measurable economic benefits. MassMutual Ventures is particularly targeting the areas where rising power demand, increased infrastructure spending, growing climate-related risk and the adoption of industry-specific AI tools are converging.

“Startups improving how energy-related infrastructure is developed, financed, operated, and protected will benefit from powerful macro tailwinds,” said Timothy Krysiek, managing partner of MassMutual Ventures’ Climate Technology Fund, in a press release.

“The path to commercialization requires deep sector expertise, connections to asset owners and operators, and customized capital solutions. We designed CTF to support founders applying climate technology and AI to improve the efficiency, resilience, value, and sustainability of real assets.”

See all the investments by MassMutual Ventures in the energy sector in the CVC Funding Round Database