Plenty of startups hit a wall after their first few rounds of funding, having grown too big for venture funds but still in need of cash. For startups specializing in industrial-scale hardware, which includes many climate tech companies, the problem is especially acute because the capital requirements are so large.
Infrastructure funds have long filled that gap, but many have been hesitant to dive into climate tech.
One firm thinks that spells opportunity, though. Ara Partners recently raised an $800 million infrastructure fund focused on reducing carbon emissions in industrial sectors, which historically have been hard to decarbonize.
Ara had initially targeted $500 million, the firm told TechCrunch, but saw strong support from new and existing investors, including pension funds, insurance companies, endowments, foundations, and sovereign wealth funds from around the world.
The new fund has already made three investments, including in an Ireland-based household organic waste recycler and a biofuels terminal developer. The fund’s decarbonization strategy focuses on repurposing existing assets for new low-carbon developments.
This significant fundraise arrives at a time of political uncertainty over decarbonization in the U.S., but increasing clarity around its economics. Many companies have been able to drive down costs of low- and zero-carbon technologies in recent years, making them cost competitive with existing approaches.
Ara, for example, previously invested in Divert through one of its private equity funds. The company donates food that’s still good and, for food that isn’t edible, turns the waste into biogas that can be sold or used to generate electricity and heat on site. Compared with the alternative — sending the waste to a landfill where it generates methane pollution — Divert’s approach makes a lot of sense environmentally and financially.
Techcrunch event
Exhibit at TechCrunch Sessions: AI
Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last.
Exhibit at TechCrunch Sessions: AI
Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last.
Berkeley, CA
|
June 5
BOOK NOW
The investment firm said it will announce its fourth investment under the strategy “shortly.”
Topics
Ara Partners, Climate, decarbonization, Fundraising, infrastructure, Private Equity
Tim De Chant
Senior Reporter, Climate
Tim De Chant is a senior climate reporter at TechCrunch. He has written for a wide range of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, where he was founding editor. De Chant is also a lecturer in MIT’s Graduate Program in Science Writing, and he was awarded a Knight Science Journalism Fellowship at MIT in 2018, during which time he studied climate technologies and explored new business models for journalism. He received his PhD in environmental science, policy, and management from the University of California, Berkeley, and his BA degree in environmental studies, English, and biology from St. Olaf College.
View Bio
May 13, 2025
London, England
Get inside access to Europe’s top investment minds — with leaders from Monzo, Accel, Paladin Group, and more — plus top-tier networking at StrictlyVC London.
REGISTER NOW
Most Popular
Ara Partners’ new $800M fund will decarbonize old industrial assets
Tim De Chant
OpenAI pledges to make changes to prevent future ChatGPT sycophancy
Kyle Wiggers
Google’s NotebookLM Android and iOS apps are available for pre-order
Aisha Malik
Damn, the Cluely ragebait got us
Theresa Loconsolo
Anthony Ha
Kirsten Korosec
Maxwell Zeff
Apple approves Spotify app update that allows U.S. users to access pricing info, external payment links
Aisha Malik
Airbnb is quietly rolling out an AI customer service bot in the US
Ivan Mehta
Apple changes US App Store rules to let apps link to external payment systems
Ivan Mehta
