Takeaways

• Gigascale Capital has launched a new $250 million fund focused on early-stage climate technology companies.
• The fund will support startups working on clean energy, grid infrastructure, advanced manufacturing, and physical AI.
• Founder Mike Schroepfer says climate progress depends on technologies that are cheaper, scalable, and commercially competitive.

Climate-focused venture capital firm Gigascale Capital has announced the launch of a new $250 million climate tech fund aimed at supporting startups building the next generation of clean industrial systems and infrastructure.

The newly launched Gigascale Capital Fund I will focus on early-stage climate tech companies that are developing technologies to modernize the “physical economy” while reducing environmental impact. The investment firm said it plans to back businesses working across clean energy investment, advanced manufacturing, grid infrastructure, and AI-driven industrial systems.

Gigascale Capital was founded in 2023 by former Meta Chief Technology Officer Mike Schroepfer. Since its launch, the firm has positioned itself as an investor in companies building scalable solutions for energy, materials, and infrastructure challenges.

Read More: VC Giants Join Forces to Scale Climate Tech Startups

According to Schroepfer, climate solutions will only gain widespread adoption if they are practical, affordable, and capable of outperforming traditional systems.

He said cleaner technologies must become easier to deploy and economically competitive instead of relying on consumers or industries to make sacrifices for environmental reasons.

The company’s investment strategy centers on technologies that can improve efficiency while supporting growing global demand for electricity, industrial production, and stronger supply chains.

So far, Gigascale Capital has invested in more than 25 climate technology startups. Its portfolio includes companies working in nuclear energy, fusion technology, sustainable chemicals, and clean baseload power.

Among the startups backed by the firm are Radiant, a company developing small nuclear reactors, fusion technology company Xcimer, sustainable chemical producer Dioxycle, and clean energy startup Arbor Energy.

Schroepfer said rising demand for power, infrastructure, and critical materials is creating significant opportunities for companies capable of scaling production quickly.

He added that many climate-focused businesses are no longer struggling to prove market demand. Instead, the challenge is expanding operations fast enough to meet growing needs.

The new climate tech fund marks Gigascale Capital’s first institutional fundraising effort focused specifically on early-stage climate tech investments. The firm said it intends to support founders through multiple stages of growth, from initial funding to large-scale deployment.

Victoria Beasley, General Partner at Gigascale Capital, said the clean energy sector has entered a new phase driven by stronger economics and faster deployment timelines.

Beasley noted that the current market environment differs from earlier clean technology cycles because many modern climate technology startups are now competing based on performance and cost advantages rather than long-term promises.

The launch of the fund comes at a time when investors are increasingly turning their attention toward technologies that can strengthen energy systems, improve industrial productivity, and accelerate the transition to lower-emission infrastructure.

Also Read: New $10M Green Transition Fund for Southeast Asia Climate Tech

With growing interest in physical AI, clean energy investment, and resilient supply chains, Gigascale Capital is positioning itself to support startups shaping the future of climate-focused industrial innovation.

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Source: ESGtoday