Gigascale raises $250 million for climate tech investments

Gigascale, the venture capital firm led by former Meta CTO Mike Schroepfer, announced on Monday that it has raised a $250 million fund. The new vehicle is dedicated to backing founders who are working to rebuild the physical economy. Specifically, the fund will target investments in energy, grid infrastructure, and critical minerals. By maintaining an explicit focus on climate tech, Gigascale is continuing to invest in the sector despite a broader market cooling that has caused other investors to sour on the space.

The strategic emphasis on energy and infrastructure reflects a wider shift within the climate tech sector, largely driven by the massive power demands of artificial intelligence. As artificial intelligence and broader electrification trends make grid connections increasingly difficult, many companies are seeking to develop their own power sources. This fund marks a new milestone for Gigascale, which Schroepfer started three years ago following his study of the sector during the COVID-19 pandemic. It represents the firm’s first fund with an early-stage focus that includes institutional investors.

Over its three-year history, Gigascale has built a portfolio of startups operating across the physical economy. Its existing investments include:

• Commonwealth Fusion Systems
• Heron Power
• Mill
• Form Energy

The firm’s investment thesis is built on performance rather than purely environmental mandates. “The companies we back win because they’re cheaper, faster, and more reliable,” Schroepfer said, explaining that climate impact is ultimately the result of better-performing systems. Schroepfer pointed to solar power as a recent example of a clean technology that has won market share by being faster and cheaper. This performance advantage is particularly vital as energy-intensive industries face severe supply constraints. For instance, the waitlist for natural gas turbines currently stretches into the early 2030s, creating a significant opening for startups that can deliver power cheaper or more flexibly. For energy-intensive industries, generating their own power will become a competitive advantage over time, as Schroepfer noted on the Inevitable podcast last year. Beyond power generation, Gigascale expects its investments to extend to grid infrastructure, critical minerals, and physical AI.

Why it matters

Gigascale’s new $250 million fund signals a continued commitment to climate tech despite a broader market cooling on the sector, with a specific focus on energy and infrastructure driven by AI demands.