News: VentureCap Closes Fund II at $120M to Back Climate Tech and Deep Tech

VentureCap is announcing the close of its second fund at $120 million. The fund will double down on early-stage climate tech and deep tech opportunities, with a geographic focus on North America and select European hubs. This marks a major expansion from the firm’s $45M inaugural vehicle and reflects strong LP demand for differentiated, mission-aligned strategies.

Fund Strategy and Focus

Fund II aims to back seed and Series A companies solving systems-level problems in decarbonization, advanced materials, energy storage, and AI-driven industrial applications. The team will deploy checks ranging from $500k to $5M, reserving additional capital for pro-rata support. The thesis emphasizes founders who combine technical expertise with clear commercialization pathways.

LP Base and Strategic Partners

The close included a mix of strategic and institutional LPs: climate-focused family offices, corporate LPs in energy and manufacturing, and university endowments with sustainability mandates. Several LPs have committed strategic support beyond capital, including piloting relationships and procurement pathways for portfolio companies.

Why Now?

Several drivers prompted the timing of this fund close:

• Technological inflection points in materials science and battery chemistries offer near-term commercialization windows.
• Supply chain reconfiguration has created opportunities for startups that can deliver differentiated product economics.
• LPs increasingly favor fund managers with domain expertise capable of active commercialization support.

Portfolio Construction

The firm will maintain a diversified portfolio approach: 40–50% of capital committed to climate hardware and materials, 30% to software-enabled industrial applications, and the balance to adjacent categories like energy finance and carbon removal. VentureCap’s team also plans dedicated follow-on reserves to support winners through Series B.

Team and Operational Build-Out

With Fund II, VentureCap is expanding its operating team to include specialists in engineering due diligence, corporate partnerships, and government program navigation. The firm has also established an advisory board of technical experts to help evaluate complex hardware bets.

Market Reaction

Founders and limited partners reacted positively to the fund close. Several founders cited the firm’s willingness to write early checks into hardware and to provide hand-on support as key differentiators. Observers on the LP side emphasized the fund’s balanced approach to risk and the potential to deploy capital into high-impact climate outcomes.

"We see a wave of founders building durable climate solutions with clear commercialization milestones. VentureCap Fund II is structured to back those teams from seed through scale," said a partner at the firm.

Implications for Founders

For startups in VentureCap’s target sectors, the fund provides a significant new source of capital and operational partnership. Founders should expect the firm to prioritize companies with demonstrable unit economics and a roadmap for pilot deployments with strategic partners.

Looking Ahead

VentureCap’s Fund II signals continued investor appetite for climate-first strategies delivered by operators with domain knowledge. As the firm deploys capital, watch for follow-on rounds that validate early hardware plays and for strategic corporate partnerships that accelerate commercialization.

We will monitor the firm’s initial investments and report on early portfolio milestones as they emerge.