Active Impact Investments closes its third fund, adding $110 million in dry powder for climate tech

Nearly doubled AUM in one of the toughest fundraising markets in decades

/EIN News/ -- VANCOUVER, BC, May 07, 2025 (GLOBE NEWSWIRE) -- Active Impact Investments, Canada’s largest climate tech seed fund, has closed its third fund at $110 million CAD, bringing total assets under management to over $180 million. With nearly twice the size of its previous fund, Active Impact is doubling down on the Canadian market opportunity, where conditions are aligning to support climate innovation globally, and reaffirming their thesis of backing early-stage climate tech ventures that abate emissions and advance the adoption of scalable clean solutions. Fund III has already invested in Canadian-based Jetson, Skyward, RIPTK, ThinkLabs AI and U.S. based C.Scale, Lumo and Zeno. The fund was co-anchored by Northleaf Capital Partners through its Canadian venture capital strategy and Fondaction, and further supported by Boann, Co-operators Corporate Venture Capital Fund, Deloitte Ventures and InBC. The VC firm will add 18 more companies to Fund III, for a total of 25, primarily in Canada with some allocation in the U.S.

“Thanks to our amazing investors, we get the privilege to support 25 more insanely talented founders so they can build the future of climate. There is a massive difference between the divisive rhetoric from both sides on climate and the reality that exists in the middle,” said Mike Winterfield, Founder and Managing Partner, Active Impact Investments. “Sadly this has led some investors to leave the space at exactly the time when the data has us most excited about huge financial outcomes. Even better, we see Canada quickly emerging as a top destination for building climate tech companies with world-class affordable talent, strong public support, effective policies like IRAP and SR&ED, and globally respected and stable leadership.”

In the 2024 Global Cleantech 100 list by the Cleantech Group, 13 of the world’s top private companies are based in Canada, second only to the U.S. but an outsized representation considering Canada has one-tenth the population. Additionally, Canada is increasingly attractive to the world’s top tech talent with the Tech Talent Strategy that offers open work permits to H-1B visa holders in the U.S. for up to three years, with an initial cap of 10,000 applications filled in just 48 hours. A greater influx of talent to Canada is expected given the U.S. shifting policies in relation to immigration and academia.

“We’re investing in companies that deliver cost savings for their customers while achieving meaningful emissions reduction or advancing more efficient clean technology with no sacrifice in quality,” said Tom Boddez, General Partner, Active Impact Investments. “Fund III has already made seven investments with very strong early traction. For example, Jetson here in Vancouver is a fully integrated heat pump solution that has grown rapidly and is now expanding into new markets. Zeno, which is U.S. based but has initial operations in Kenya for their electric motorbikes and battery charging network, has launched their first model and grown to a waitlist of over 10,000 qualified purchasers in a year. We are searching for outstanding founders or operators that want to build a climate company. If you’ve been successful with another venture and you want to build something massive in clean energy and transportation, infrastructure and carbon solutions, sustainable food and water or circular economy, we want to talk.”

“We are proud to significantly increase our support to Active Impact, recognizing their leadership as one of Canada’s top VC impact investors,” said Louis de La Haye Duponse, Deputy Chief Investment Officer at Fondaction. “Their recent successful fundraise and carefully curated portfolio of high-impact environmental companies speak to their leadership in this sector. We deeply value the team’s transparency, accountability, and outstanding effectiveness in delivering both measurable impact and strong performance.”

Founded in 2018, the firm has invested in 39 companies across North America and has exited seven via acquisitions, three of which were in 2024. Their first and second funds are currently benchmarked in the top decile of distributions (DPI) to investors for their vintage year according to recent data from Carta, a private markets data platform.

“Active Impact Investments has been far more than just an investor for SWTCH since they first backed us in 2020,” said Carter Li, Founder of SWTCH a Fund I portfolio company. “At critical inflection points in our growth, they've helped us identify and place key senior talent that transformed our executive team. Their extensive network has opened doors to both investors and customers that accelerated our expansion. When we were preparing for our Series B last year, their support throughout the fundraising process was instrumental to our successful raise. Their commitment to climate impact and exceptional operational support makes them a uniquely valuable partner.”

“Active Impact was one of our earliest believers and has stood by us through every high and low,” said Annalee Bloomfield, Founder of Sustain.Life, a Fund II portfolio company that was acquired by Workiva in 2024. “When SVB collapsed, they were on the phone with us until midnight all weekend, helping navigate options to keep the business moving and ensure we could make payroll. Through every fundraising round, they were hands-on — from refining our process and materials to opening doors. They are an exceptionally kind, driven team, always thinking about how to help their portfolio companies succeed. I’m proud to now be an LP in Fund III and excited to keep building the future alongside them.”

For more information about Active Impact Investments, visit www.activeimpactinvestments.com.

About Active Impact Investments
Active Impact Investments is a Certified B Corp based in Vancouver, B.C., whose mission is to support environmental sustainability through profitable investment by providing money and talent to accelerate the growth of early-stage climate tech companies with early revenue and significant growth potential. Their portfolio includes and is seeking some of the most successful startups in North America that are capable of achieving venture scale and becoming extremely profitable while solving the most urgent environmental issues.

Cal Kennedy
                    SOMA Public Relations
                    cal@somaworks.com