Blue Bear Capital has successfully closed its third fund, Fund III, with a total of $160 million aimed at investing in machine intelligence solutions to tackle energy and climate challenges.

This new fund marks a strategic shift for Blue Bear, expanding its investment focus beyond renewable energy to include data centers and climate adaptation technologies, following the success of its previous $150 million Fund II.

The firm plans to invest approximately $5 million in each of around 20 companies, reserving additional funds for follow-on investments to maintain significant ownership stakes.

Key investors in Fund III include notable organizations such as the Rockefeller Brothers Fund, the McKnight Foundation, Zoma Capital, and UBS, along with various private equity executives.

So far, Fund III has already invested in four companies: ChargerHelp!, Pioneer, SKOON, and Delos, with three more investments pending announcement.

Blue Bear's investment strategy emphasizes sustainable energy, electric grid infrastructure, and climate-related industries, including wildfire protection and pollution reduction.

The firm highlights the importance of supporting founders in navigating the rapidly evolving energy landscape to achieve impactful outcomes.

Blue Bear Capital argues that software is crucial in climate tech, asserting that hardware development must be aligned with software capabilities.

The leadership team at Blue Bear consists of experienced professionals from the energy and technology sectors, bringing a wealth of knowledge in private equity, venture capital, and energy policy.

The investment model anticipates fewer IPOs and more mergers and acquisitions, focusing on smaller but collectively strong returns for investors.

Previous investments by Blue Bear include Raptor Maps, which provides digital twinning for solar assets, and Omnidian, a remote monitoring tool for solar energy.

Founded in 2016, Blue Bear Capital has established a strong track record in energy technology investments, having raised $150 million in its previous fund.