Convective Capital Raises $85 Million Fund for Disaster Resilience
Convective Capital has closed an $85 million fund to invest in technologies addressing disaster resilience. The firm, which initially focused on fire tech, is broadening its mandate to cover a wider range of natural disasters.
Convective Capital announced the closing of an $85 million fund aimed at building disaster resilience. The venture capital firm, which originally launched to invest in fire technology, is now expanding its focus to include a broader set of natural disasters. The fund will target early-stage companies developing solutions for wildfire, flood, hurricane, and other climate-related events.
The firm's managing partner, Bill Clerico, said the decision to broaden the mandate came from recognizing that many technologies for fire resilience also apply to other disasters. Convective Capital has already made investments in several startups, including Gridware, which uses sensors to detect power line faults that can spark wildfires, and Caption, a company that provides real-time data on flood risks.
The new fund, called Convective Capital Fund II, will write checks ranging from $500,000 to $5 million. Clerico emphasized that the firm is looking for companies with hardware and software solutions that can be deployed quickly and scale effectively. He noted that the disaster resilience market is growing rapidly as climate change increases the frequency and severity of extreme weather events.
Convective Capital's portfolio also includes companies like Fireball, which develops autonomous aircraft for firefighting, and Rain, a startup that uses weather modification technology to prevent wildfires. The firm plans to invest in 20 to 25 companies with the new fund, focusing on the United States initially but with potential for global expansion.
Limited partners in the fund include institutional investors, family offices, and strategic partners from the insurance and utility sectors. Clerico said the firm's approach is to back entrepreneurs who are building technologies that can save lives and property while also generating strong financial returns.
The fundraise comes as venture capital investment in climate tech has surged, with disaster resilience becoming an increasingly important sub-sector. Convective Capital's previous fund, which closed at $35 million in 2021, was solely focused on fire tech. The new fund represents a significant increase in size and scope.
Clerico stated that the firm is already evaluating potential investments in areas such as early warning systems, resilient infrastructure, and disaster response logistics. He added that Convective Capital aims to be the leading venture firm in the disaster resilience space, providing not only capital but also operational support and industry connections.
The fund is now open for business, and Convective Capital expects to deploy the capital over the next three to four years. The firm is based in San Francisco and has a network of advisors with expertise in emergency management, climate science, and public policy.
Stilta raises $10.5M from a16z and YC to help companies rediscover the patents they forgot they had
Stilta announced a $10.5 million seed round led by Andreessen Horowitz, with participation from Y Combinator and operators from OpenAI, Legora, and Lovable. The company uses AI to help businesses identify and manage underutilized patents in their portfolios.
Stilta announced Tuesday a $10.5 million seed round led by Andreessen Horowitz. Other investors in the round include Y Combinator and operators from companies like OpenAI, Legora, and Lovable. The startup aims to solve a common problem for large corporations: forgotten patents buried in their portfolios.
Many companies hold thousands of patents but lack the resources to track them all. Stilta's platform uses artificial intelligence to scan patent databases and identify assets that may be valuable but overlooked. The system analyzes legal status, market relevance, and potential licensing opportunities.
The software integrates with existing intellectual property management tools. It provides dashboards that highlight patents nearing expiration or those with untapped commercial potential. Stilta claims its technology can reduce the time spent on patent audits by up to 80%.
Stilta was founded by former patent attorneys and AI researchers. The team previously worked at firms specializing in IP litigation and technology transfer. They observed that many clients held patents worth millions but had no systematic way to evaluate them.
The company plans to use the funding to expand its engineering team and accelerate product development. Stilta also aims to build partnerships with law firms and corporate IP departments. The startup currently serves a handful of Fortune 500 clients in pilot programs.
Stilta's approach addresses a growing need as patent portfolios become more complex. The number of active patents in the U.S. has surpassed 3 million, according to the U.S. Patent and Trademark Office. Companies often acquire patents through mergers or R&D but fail to integrate them into strategic planning.
The seed round brings Stilta's total funding to $12 million. The company declined to disclose its valuation. Andreessen Horowitz general partner David Ulevitch will join Stilta's board as part of the investment.
Stilta is headquartered in San Francisco and has a remote team of 15 employees. The company plans to double its headcount over the next year. It is currently hiring for roles in machine learning, software engineering, and customer success.
SpaceX, OpenAI, Anthropic IPOs Pose Big Risks and Rewards for Wall Street
Wall Street anticipates a wave of major IPOs starting with SpaceX in June, followed by AI rivals OpenAI and Anthropic, each targeting valuations around $1 trillion. The listings present significant opportunities but also substantial risks due to high valuations and market volatility.
Wall Street is preparing for an unprecedented series of blockbuster initial public offerings, with Elon Musk's SpaceX expected to lead the charge in June. The space exploration company is reportedly targeting a valuation around $1 trillion, setting the stage for what could be one of the largest IPOs in history. Following SpaceX, artificial intelligence firms OpenAI and Anthropic are also planning to go public, each eyeing similar trillion-dollar valuations. The trio of mega listings has investors and analysts closely watching the market's appetite for such high-stakes offerings.
SpaceX, known for its reusable rockets and Starlink satellite internet service, has long been a private market darling. The company's IPO is anticipated to draw significant interest from both institutional and retail investors, given its track record of innovation and government contracts. However, the valuation remains a point of debate, as SpaceX's revenue streams are still evolving and the space industry carries inherent risks.
OpenAI, the creator of ChatGPT, has become a household name in artificial intelligence. The company's IPO is expected to capitalize on the booming AI sector, with investors eager to gain exposure to cutting-edge language models and generative AI. OpenAI's valuation reflects its leading position in the field, but competition from other AI startups and tech giants could pressure margins.
Anthropic, founded by former OpenAI employees, focuses on AI safety and research. The company has developed its own large language model, Claude, and has attracted significant venture capital funding. Its IPO will test whether investors are willing to bet on a more cautious approach to AI development, as Anthropic emphasizes ethical considerations and alignment.
The simultaneous arrival of these three mega IPOs presents a unique challenge for the market. Underwriters will need to gauge demand carefully, as the sheer size of the offerings could strain liquidity. Historically, large IPOs have sometimes struggled in volatile markets, and the current economic environment—with interest rates still elevated—adds uncertainty.
Regulatory scrutiny is another factor. SpaceX operates in a heavily regulated industry, and both OpenAI and Anthropic face potential government oversight as AI regulation evolves. Any adverse regulatory developments could impact valuations and investor sentiment.
Despite the risks, the potential rewards are substantial. If these companies deliver on their growth promises, early investors could see significant returns. The IPOs also represent a milestone for the private markets, which have seen a surge in late-stage funding rounds that have kept companies private longer.
SpaceX is expected to file its S-1 registration statement with the SEC in the coming weeks, with the IPO tentatively scheduled for June. OpenAI and Anthropic have not yet announced specific dates but are believed to be targeting the second half of the year. All three companies declined to comment on the IPO plans.
Investors should brace for a period of heightened activity and volatility as these mega listings hit the market. The success of these IPOs could set the tone for other high-profile companies considering going public, including Stripe and Instacart. For now, Wall Street is watching closely, balancing excitement with caution.