Convective Capital launches $85M disaster resilience fund to scale firetech and infrastructure startups
Convective Capital has closed an $85 million disaster resilience fund to expand its firetech investments into broader physical risk management, backing startups that help utilities, insurers and communities withstand climate-driven disasters.
Convective Capital, the early-stage firm led by Bill Clerico, announced the $85 million vehicle on Thursday, marking a significant step up from its $35 million debut fund in 2022. The new fund shifts the firm’s focus beyond wildfire prevention toward a wider mandate of disaster resilience and physical risk management, with institutional backers including insurance companies and asset managers joining the investor base. Clerico framed the raise as a response to mounting economic stress from extreme weather and failing infrastructure, positioning venture capital as a channel for practical mitigation and recovery products.
Fundraise and institutional support
The latest close replaces much of the high-net-worth base that backed Convective’s first fund with institutional capital from insurers and asset managers.
That shift reflects growing institutional interest in technologies that reduce exposure to losses from natural hazards, and it gives Convective greater capacity to lead larger rounds and support capital-intensive companies focused on physical infrastructure.
Shift from firetech to broad resilience
Convective built its reputation investing in "firetech" — startups developing early detection cameras, autonomous water-dropping aircraft and robotic brush-clearance tools.
With the $85 million fund, the firm has broadened its thesis to back companies that manage risk across the built environment, from energy and water systems to commodities hedging and timber economics.
Early investments under the new mandate
The fund’s first announced investments illustrate the expanded scope: The Lumber Manufactory is building timber mills to improve forest management economics, Drafted applies AI to home design for resilient construction, Voltaire develops drones for power-line inspections, and Edge Technologies offers insurance-like products to hedge commodity volatility.
These initial bets span hardware, software and financial products, signaling Convective’s intent to address prevention, response and economic recovery in parallel.
Performance of the first fund
Convective’s inaugural fund has shown notable follow-through: portfolio companies have collectively reached roughly $100 million in revenue and hold an estimated combined value near $2 billion.
Clerico told investors a high proportion of the seed-stage companies progressed to Series A, a metric he highlights as evidence that sector-focused investing and operational support can accelerate maturity in a challenging market.
Engagement challenges with insurers and utilities
A central friction point for disaster resilience startups has been access to customers inside utilities, insurers and government agencies, organizations that often demand long procurement cycles and proven operational reliability.
Convective says part of its role has been facilitating those relationships, and the firm points to newer insurance entrants — and startups it has backed that offer underwriting or mitigation services — as catalysts prompting incumbents to rethink product and investment strategies.
AI, data centers and infrastructure stress
Clerico also argues that the rapid expansion of AI and data center construction is increasing strain on energy and water systems, creating added demand for resilience technologies.
Growth in compute capacity means more assets tied to grid stability and site-level water use, which in turn raises the economic and operational stakes for monitoring, hardening and rapid response technologies.
Market opportunity and economic drivers
Convective frames the opportunity in macroeconomic terms: trillions of dollars of at-risk real estate, recurring public and private spending on disaster recovery, and systemic shocks such as utility bankruptcy or insurer retreat from high-risk geographies.
The firm expects these large-scale financial outcomes to create commercial pathways for startups that can demonstrably reduce risk or lower recovery costs, allowing private capital to underwrite resilience rather than leave it solely to government programs.
Recent portfolio companies demonstrate a mix of approaches: sensor and AI firms aimed at early detection, robotics and aircraft for active suppression and clearance, and financial products that smooth the volatility of commodity and insurance markets. Convective’s new fund is intended to scale those models and to seed companies whose impact requires more capital and longer time horizons than a typical seed round can provide.
Convective’s $85 million fund comes as disaster frequency and severity continue to shape investment priorities across Silicon Valley and the insurance industry, and as startups seek clearer commercial channels into critical infrastructure customers. The firm’s backers and early portfolio moves indicate a bet that practical, revenue-generating tools for prevention, inspection and financial hedging will attract sustained demand as climate and technological change together stress the physical systems that underpin daily life.
