New Mexico is aggressively reshaping its economic future, leveraging its $66 billion sovereign wealth fund to inject over $1.7 billion into the venture capital ecosystem.
Through its New Mexico Venture Capital Program, the state is partnering with more than 30 of the world’s most influential VC firms to attract and scale the next generation of technology companies within its borders.
The bold initiative, managed by the New Mexico State Investment Council (NMSIC), aims to build a world-class startup ecosystem focused on climate tech, deep tech, and defense tech.
New Mexico’s Strategic Asset Base
- National Laboratories: Los Alamos National Laboratory (LANL) and Sandia National Laboratories.
- Defense Installations: Air Force Research Laboratory (AFRL), White Sands Missile Range, and Kirtland Air Force Base.
- Research Universities: University of New Mexico (UNM), New Mexico State University (NMSU), and New Mexico Tech.
NMSIC’s VC Strategy
NMSIC’s investment thesis is anchored in a “right to win” strategy, concentrating capital in technology sectors where New Mexico possesses unique, defensible competitive advantages.
Investments are strategically channeled into three primary verticals that align with these assets:
| Sector | Sub-Sectors | Representative Fund Commitments |
|---|---|---|
| Deep Tech | AI, Quantum, Next-Gen Computing, Advanced Manufacturing, Hard Sciences. | Roadrunner Fund I ($50M), Frontier Fund I Alpha ($50M), Root Ventures IV ($25M). |
| Climate Tech | Decarbonization, Renewable Energy (Geothermal, Solar), Energy Tech, Mobility. | At One Ventures ($20M), DCVC Climate ($50M), Dangerous Ventures ($10M), UP.Abundance ($80M). |
| Defense Tech | Dual-Use Technologies, Aerospace, Space, Autonomy, Cybersecurity. | J2 Ventures Argonne ($14.5M), Airbus Ventures IV ($20M), Upfront VIII ($50M). |
The condition for these investments is straightforward: the firms must invest in startups that commit to building a significant part of their business in New Mexico.
This strategy was underscored in a May 2025 SIC meeting, where the council formally reclassified the venture program as a market-rate investment.
This program creates a powerful incentive for both startups and investors.
For startups, it unlocks access to a massive, dedicated pool of capital and a suite of state resources, including hundreds of millions in non-dilutive funding and connections to national laboratories and government agencies.
For VCs, it provides a unique pipeline of government-backed opportunities in high-growth sectors.
A prime example of this strategy in action is the recent launch of UP.Abundance, a new fund from the firm UP.Partners.
UP.Abundance specializes in identifying startups with a strategic reason to build in New Mexico, providing them with initial investments of up to $1 million.
The fund then acts as a gateway, helping its companies tap into the larger $1.7 billion network of capital and state support.
The model is already yielding impressive results. Since launching, UP.Abundance has made six investments, including in Pacific Fusion, a pioneering company that recently announced it is building a $1 billion demonstration and manufacturing facility in New Mexico.
This aligns with the state’s broader goals.
The New Mexico Private Equity program has already invested in 128 New Mexico-based companies and is now expanding its reporting to include companies that build “significant operations in New Mexico, even if headquartered elsewhere”.
Timeline of Venture Capital Commitments (2022-2025)
Shown below is a complete list of Venture Capital Funds participating in the NMSIC’s VC program along with their areas of focus:
Flagship Wins Demonstrate Catalytic Impact
Several case studies highlight the program’s ability to catalyze large-scale projects and attract significant external capital.
| Company | Technology Area | Investment Catalysis & Impact | Origin |
|---|---|---|---|
| XGS Geothermal | Geothermal Energy | Portfolio company of NMSIC-backed Anzu Partners; announced a 150MW geothermal project with META, involving a $1.2B power plant in NM. | Anzu Partners Portfolio Co. |
| UBiQD | Quantum Dot Tech | Secured a $20M Series B to scale operations and commercialize its technology for solar and agriculture. | Los Alamos National Lab |
| Pacific Fusion | Nuclear Fusion | Received investment from NMSIC-backed fund UP.Abundance and is now building a campus in Albuquerque. | Building $1 Billion research and manufacturing campus in ABQ |
| Space Kinetic | Space Superiority | Received investment from NMSIC-backed fund UP.Abundance. | Albuquerque-based |
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