Decarbonization-focused investment firm Aligned Climate Capital announced that it has raised $85 million at the final close of its second venture fund, Aligned Climate Fund 2 LP (ACF2), targeting investments in clean energy and decarbonization solutions.

The fund, which is twice the size of Aligned’s first fund, invests in companies at the Seed through Series B stages, that are scaling proven, financeable clean energy solutions, in areas including clean energy, efficient and resilient infrastructure, electric transportation, and sustainable land use. The strategy focuses on companies that can scale rapidly to increase revenues and reach profitability in the near-term.

Aligned said that in addition to providing capital, the firm also actively supports its portfolio companies in securing additional financing, building market partnerships, and accelerating commercialization.

To date, the new fund has invested in nine companies including BoxPower, BrightNight, CarbonQuest, ChargerHelp!, EVenergi, NYLE Water Heating Systems, Port Wind, UtilityAPI, and a geothermal company that has not yet been publicly announced.

Peter Davidson, CEO of Aligned Climate Capital, said:

“The clean energy transition isn’t a technology challenge; it’s a deployment challenge. The solutions needed to decarbonize the economy already exist, but scaling them requires capital, expertise, and market access. Our venture fund is investing in companies accelerating this transition by deploying proven clean energy technologies that are already outcompeting fossil fuels and delivering real impact today.”

ACF2 was closed with the support of the Ford Foundation, The Rockefeller Foundation, and several institutional investors. Aligned has also donated 3% of ACF2’s carried interest to three nonprofits doing critical work on climate change: The Honnold Foundation, which expands solar energy access for underserved communities worldwide; the Climate & Clean Energy Equity Fund, which supports grassroots organizations advancing climate justice and equity; and Impact Capital Managers, which fosters collaboration and education within the impact investing community.

Maria Kozloski, Senior Vice President at The Rockefeller Foundation, said:

“The Rockefeller Foundation is committed to advancing economic growth by supporting investments that bridge the gap between innovation and large-scale deployment. Aligned’s hybrid approach reduces risk while expanding clean energy access, making proven technologies more impactful for U.S. communities adapting to a changing energy landscape.”