Convective Capital has announced the successful closing of an $85 million fund aimed at bolstering physical disaster resilience. Led by Bill Clerico, the firm is shifting its focus from its initial concentration on wildfire mitigation to a broader mandate of managing risks associated with natural disasters. This new capital injection follows a successful $35 million inaugural fund raised in 2022, marking a significant transition from individual backing to institutional support from major insurance companies and asset managers.

The firm’s investment strategy centers on the concept of “firetech” and broader physical risk management. Previous portfolio successes include Pano, which utilizes AI-powered cameras for early fire detection, and Burnbot, a developer of robotics for brush clearing. With the new fund, Convective Capital has already initiated investments in companies such as The Lumber Manufactory, which focuses on economical forest management, and Voltaire, a drone-based power line inspection firm. These companies are part of a growing ecosystem designed to address the $60 trillion in real estate currently exposed to high disaster risk.

Beyond providing capital, the firm plays a critical role in bridging the gap between startups and traditionally difficult-to-navigate sectors like utilities and government agencies. As climate-related disasters continue to strain infrastructure and force insurance providers to reconsider their market presence, Convective Capital aims to capitalize on the resulting demand for innovative mitigation tools. The firm notes that the rapid expansion of AI and data centers is further stressing physical systems, creating additional market opportunities for technologies that can monitor, predict, and protect against environmental threats.