$85M Fund Backs Tech Fighting Wildfires and Disasters

While California battles early wildfires, one venture fund is betting that technology can turn the tide against natural disasters.

Convective Capital announced an $85 million fund this week to invest in companies building solutions for disaster resilience. The fund more than doubles their initial $35 million raised in 2022, and this time it's backed by major institutions including insurance companies and asset managers who see the urgent need for innovation.

The numbers tell a sobering story. About $60 trillion worth of real estate sits at high risk from disasters, and the U.S. spends $1 trillion annually recovering from them. But fund leader Bill Clerico sees opportunity in the crisis.

"The silver lining is that it's gotten so bad that the private markets can now take over," Clerico told reporters. He points to utilities going bankrupt and insurers abandoning entire markets as proof that traditional approaches aren't working.

Convective's portfolio includes companies building AI-powered cameras that spot fires early, autonomous aircraft that dump water on flames, and robots that clear dangerous brush. They're also backing firms that help homeowners fireproof their properties and redesign power line inspections using drones.

The fund started with a focus on wildfire technology but has expanded to tackle all disaster risks. Recent investments include a timber mill company making forest management more economical and a startup building insurance products for volatile commodity prices.

The Ripple Effect

The fund's first round of investments shows this approach works beyond just saving lives. Those early companies have generated $100 million in revenue and reached a combined valuation of $2 billion. An impressive 79% graduated from seed funding to Series A, far exceeding typical venture benchmarks.

Even better, new insurance startups are stepping in where traditional insurers pulled out, forcing the old guard to modernize their approaches. The competition is creating more options for homeowners and communities previously left without coverage.

Convective helps its companies navigate partnerships with utilities, insurers, and government agencies that many entrepreneurs find challenging to work with. This support system is building an entire ecosystem around disaster prevention rather than just disaster response.

Ironically, the AI boom itself is creating more opportunities for these companies. The rush to build data centers puts additional stress on energy and water systems, increasing demand for exactly the monitoring and protection technologies these startups provide.

The message is clear: preventing disasters makes more sense than just recovering from them, and the technology to do it is finally here.