MUUS Climate Partners Closes $50 Million Fund – EQ Mag
Early-stage fund led by climate-focused entrepreneurs and experts seeks to rapidly scale solutions that reduce greenhouse gas emissions
NEW YORK : MUUS Climate Partners (MCP), a climate-dedicated venture capital firm, today announced the closing of MUUS Convergence Fund II, a $50 million fund focused on impactful companies at the cusp of commercialization.
MCP’s Chairman, Michael Sonnenfeldt draws from a decades-long track record of leading and investing in renewable energy companies. In 2016, Sonnenfeldt recruited Partner Ben Wolkon from MIT, to focus exclusively on climate solutions whose impact and return profiles could be accelerated by the application of advanced technology. In Fund II, Sonnenfeldt and Wolkon are joined by a third partner, investor and technologist Logan Grizzel, as well as Principals Laura di Bonaventura, Kavita Patel and Tani Brown.
The diverse team leverages a strong track record in climate investing, alongside sector expertise, differentiated viewpoints, and a unique network to identify extraordinary investment opportunities at the intersection of new technologies and decarbonization across the climate tech landscape. MCP’s prior fund, MUUS Convergence Fund I, the $30 million predecessor to Fund II which commenced in 2016, has now surpassed three times the Total Value to Paid-In Capital (TVPI).
MCP has been successful in sourcing opportunities in undercapitalized areas of climate tech with outsized potential to reduce emissions. Fund II portfolio companies already include the tech-enabled global renewable power provider BrightNight, the Lawrence Berkeley National Lab spinout Aepnus, and the ultra-low emissions smart heat pump company Harvest Thermal. Because MCP anchored Fund II with internal capital, the team was able to invest in nine companies as the fund was being raised.
“In a time when the climate crisis is becoming increasingly urgent, economic conditions are complicating the flow of capital to companies that can most effectively reduce emissions,” said Michael Sonnenfeldt, Chairman at MCP. “Because of the unique business, academic, and policy networks we’ve built over decades, we have a proven ability to find opportunities that others have missed or couldn’t access. While we’re proud of our performance, we are even prouder of our companies’ climate impact. Thanks to our collective networks, expertise, and systems, we outperform funds many times our size and help drive success for the entrepreneurs we support.”
MCP uses CRANE to track the emissions reduction potential of every company it invests in. The team also collaborates with the MIT Sloan School of Management Sustainability Initiative and the think tank Climate Interactive to bring the science of climate solutions to political and business leaders.
“Our group has flown under the radar for years, and during that time we’ve been proud to back some of the most impactful and exciting companies in climate tech and build a strong track record,” said Ben Wolkon, Partner at MCP. “Fund II represents the next phase in our evolution – expanding our world-class team, bringing in extraordinary investment partners, and operating a bit more out in the open to highlight the impact of our companies. We couldn’t be more convinced that addressing climate change is this generation’s greatest opportunity for entrepreneurship, innovation and investment.”
About MUUS Climate Partners
MUUS Climate Partners (MCP) invests at the convergence of tech and decarbonization, focusing on technologies that have the most carbon reduction potential. MCP’s diverse and entrepreneurial team members have built new ventures, advanced climate policy and led corporate initiatives around decarbonization. The team’s combined decades of climate leadership and broad network enable MCP to identify and support winning climate software and hardware solutions. To date, MCP has invested in 30 companies across Funds I and II. MCP is an affiliate of MUUS & Company, the private investment firm of serial entrepreneur and Tiger 21 founder Michael Sonnenfeldt.
