New Mexico Bets $100M on Infrastructure to Build its Tech Future

ALBUQUERQUE, NM – May 04, 2026 – New Mexico is deploying a novel strategy to cement its place as a hub for next-generation technology, launching a $100 million fund that sidesteps traditional venture capital models. Tierra Adentro Growth Capital (TAG Capital) today announced its New Mexico strategy, headlined by the Tierra Adentro Fund, an infrastructure investment vehicle designed to finance the physical assets—factories, labs, and energy systems—for deep tech companies building in the state.

The fund, primarily backed by the state's $70 billion sovereign wealth fund, the New Mexico State Investment Council (SIC), aims to bridge a critical financing gap. While the SIC has already committed $1.8 billion to venture firms funding early-stage development, the Tierra Adentro Fund will provide the "bricks and mortar" capital needed for industries like advanced energy, aerospace, and deep tech to scale their physical operations within the Land of Enchantment.

A New Model for Building Deep Tech

The fund represents a strategic departure from typical tech financing. Instead of trading capital for equity, which dilutes founder ownership over time, Tierra Adentro provides capital specifically for infrastructure projects, offering a different path to scale for capital-intensive startups. This approach targets a well-known "valley of death" for deep tech companies, where the cost of building manufacturing plants or specialized facilities can be prohibitive.

Alok Sindher, a veteran infrastructure investor with experience at firms like Fifth Wall and The D.E. Shaw Group, will lead TAG Capital as Managing Partner and Chief Investment Officer. He brings over two decades of experience in energy and infrastructure finance, a background that aligns with the fund's unique mission.

"Entrepreneurs thinking about expanding in New Mexico are embracing the model we are building at Tierra Adentro," said Alok Sindher. "At the end of the day we are helping companies scale in a way traditional equity financing cannot and frankly should not. Founders can instead retain more autonomy and ownership of their company as they grow in, or expand to, New Mexico."

The fund is structured to be flexible, with investments ranging from a few million dollars up to $40 million. This allows it to cater to a variety of infrastructure needs, from a specialized production line to a full-scale manufacturing facility.

Powering the Future with Geothermal AI

The fund has already put its thesis into action with its first investment in Zanskar, an AI-native geothermal energy developer. Zanskar's technology uses artificial intelligence to dramatically reduce the time and cost of discovering and developing geothermal resources, a critical source of 24/7 carbon-free power.

TAG Capital's investment is part of a larger $40 million development capital facility for Zanskar, structured to help the company commercialize its pipeline of geothermal projects. This type of financing is crucial for bridging the gap between initial discovery and the point where projects can attract traditional bank financing. For Zanskar, it unlocks a critical bottleneck of early-stage project financing, allowing it to move its AI-identified geothermal sites toward becoming operational power plants.

This investment perfectly illustrates the fund's focus: providing the capital necessary to turn cutting-edge technology into tangible, long-term infrastructure assets that can power the future, both literally and economically.

A Strategic Piece in New Mexico's Economic Puzzle

The launch of the Tierra Adentro Fund is a calculated move within a much broader economic development strategy for New Mexico. The state has been working for years to create an environment ripe for tech innovation, leveraging its world-class research institutions like Sandia and Los Alamos National Laboratories and offering a suite of incentives through the New Mexico Economic Development Department.

The SIC's aggressive venture capital program has laid the groundwork, attracting top-tier venture funds and their portfolio companies to the state. However, officials recognized a missing piece.

"The consolidation of major infrastructure platforms and the significant demand from the next generation of deep tech made it clear New Mexico could benefit from Tierra Adentro's strategy," said Chris Cassidy, the Director for Private Equity and Venture Capital at the SIC. "The incentives and environment around building in New Mexico are already primed, but this fund's value proposition was missing. I am confident it will complement the SIC's broader investment strategy."

This sentiment is echoed by state leadership, who see such partnerships as essential for broadcasting the state's advantages on a global scale. "I truly believe New Mexico is the best place to build a business, and strong partnerships like this help us make sure the best in the world see the opportunity here clearly," said Economic Development Secretary Rob Black.

The Boston-Albuquerque Connection

Further strengthening the fund's potential is the strategic guidance from J2 Ventures, a Boston-based firm also backed by the SIC. J2 co-founders Alexander Harstrick and Jonathan Bronson will serve as advisors, bringing a proven model of connecting innovative companies with government and state-level opportunities.

J2 Ventures was instrumental in Mesa Quantum, a quantum sensing company, announcing its expansion to New Mexico, demonstrating a clear pathway for funneling high-potential tech firms into the state's ecosystem. This pipeline is already proving fruitful for the new infrastructure fund.

"The Tierra Adentro fund has more companies seeking investment than it can currently handle — with no marketing to date," noted Alexander Harstrick. This overwhelming early demand validates the fund's core premise and signals its potential for significant economic impact. "This fund has the potential to create hundreds of high-wage jobs in the state and will dually ensure the SIC's capital remains squarely focused on developing critical aspects of the state's future."

By providing the final, crucial piece of the funding puzzle, the Tierra Adentro Fund is poised to not just attract, but to physically root the next generation of American industry in the high desert of New Mexico.