EchoVC, a Pan-African early-stage venture capital firm, has teamed up with Shell Foundation and UK Aid to create a $2.5 million fund for investing in clean technology startups across Africa.
The fund, named EchoVC Eco Pilot Fund I, aims to support founders with initial funding and help them secure additional financing for their missions.
Eghosa Omoigui, Managing Partner at EchoVC, explained that the pilot fund intends to back innovative founders, fostering high-quality companies that can later attract support from the growing number of climate and energy-focused funds.
This initiative is seen as a stepping stone toward EchoVC’s larger 2024 Eco Fund.
As global discussions on climate change gain momentum, investments in the cleantech sector have notably increased, making it one of the most funded sectors, as reported by BD Funding Tracker.
Taiwo Kamson, Principal at EchoVC, emphasised that the Eco Pilot Fund I is strategically designed to address funding gaps in specific impact-focused sectors such as agriculture, climate, and energy.
The goal is to contribute to the growth and development of innovative solutions in these areas, recognizing the importance of supporting mission-driven founders with high-risk capital.
Omoigui highlighted that addressing Africa’s diverse needs requires more than fintech investments, emphasising the importance of backing mission-driven entrepreneurs for the continent’s entrepreneurial, job creation, and household upliftment goals.
The launch of this cleantech-focused fund coincides with the upcoming United Nations climate change summit, COP28, in Dubai. Leaders worldwide will gather to discuss various issues, with a significant focus on climate financing and exploring ways to support developing nations in addressing the challenges of climate change.
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