Ex-Meta CTO raises $250M climate fund with contrarian strategy
▼ Summary
– Gigascale, led by former Meta CTO Mike Schroepfer, raised a $250 million fund for startups “rebuilding the physical economy.”
– The fund focuses on energy, grid infrastructure, and critical minerals through a climate tech lens, defying skepticism in that sector.
– The fund backs early-stage startups like Commonwealth Fusion Systems and Form Energy, continuing Schroepfer’s climate tech bets since 2020.
– Rising electricity demand from AI and electrification drives the fund’s focus on new energy sources and delivery methods.
– Gigascale targets investments in generation, grid infrastructure, critical minerals, and physical AI, betting on cheaper, faster, and more reliable solutions.
Gigascale, the venture firm founded by former Meta CTO Mike Schroepfer, has secured $250 million for its second fund, backing entrepreneurs who are rebuilding the physical economy.
The new fund is targeting energy, grid infrastructure, and critical minerals through a climate tech lens. By maintaining an overt focus on climate, Gigascale is pushing against a broader market trend that has cooled on the “climate tech” label.
This second fund continues the investment strategy Schroepfer has pursued since launching Gigascale three years ago. The firm has already backed notable names in the space, including Commonwealth Fusion Systems, Heron Power, Mill, and Form Energy.
Gigascale grew out of Schroepfer’s deep dive into climate technology during the COVID-19 pandemic. This latest fund marks the first with an early-stage focus and includes institutional investors.
Climate tech has always been a broad category, and Gigascale’s portfolio reflects that diversity. But in recent years, the sector has narrowed its focus toward energy and infrastructure, a shift largely driven by the demands of artificial intelligence.
It’s no surprise, then, that power is a core focus of the new fund. Surging electricity demand creates opportunities for new energy sources and innovative ways to deliver that power to businesses and homes.
Schroepfer pointed to solar as a recent example of a clean technology that is faster, cheaper, and winning in the market.
While solar and batteries dominate clean power conversations, Schroepfer sees more opportunities. AI and broader electrification trends have made it increasingly difficult for companies to connect to the grid. Many are now trying to develop their own power sources, but competition there is fierce. Natural gas turbines, for instance, have a waitlist stretching into the early 2030s.
That power crunch opens a window for energy startups. In energy-intensive industries, bring-your-own power “is going to be a competitive advantage over time,” Schroepfer said on the Inevitable podcast last year. Startups that can deliver power cheaper or more flexibly, or both, can win on those merits alone.
But Gigascale isn’t stopping at generation. The firm also sees opportunities in grid infrastructure, critical minerals, and physical AI.
“The companies we back win because they’re cheaper, faster, and more reliable,” Schroepfer said in a statement. “That’s how adoption scales. Climate impact is the result of better-performing systems.”
(Source: TechCrunch)
