EchoVC, a leading Pan-African early-stage venture capital firm, has unveiled a $2.5 million fund to invest in cleantech startups across Africa. The newly introduced fund, EchoVC Eco Pilot Fund I, is a collaborative effort with financial backing from the Shell Foundation and UK Aid.
Eghosa Omoigui, Managing Partner at EchoVC, outlined the primary objective of the EchoVC Eco Pilot Fund I, stating, “The objective of our eco pilot fund will be to back founders with first institutional checks and assist them in syndicating financing rounds to support their mission.” Omoigui emphasized that, as a pilot fund, they intend to support a pipeline of high-quality founders creating companies that align with climate and energy-focused goals.
The insights gained from this initiative will contribute to future investments from the larger 2024 Eco Fund. The fund comes when investments in the cleantech sector are on the rise, with notable momentum throughout the year.
Taiwo Kamson, Principal at EchoVC, described the Eco Pilot Fund I as a strategic initiative addressing funding gaps in specific impact-focused sectors and their respective value chains, particularly in areas related to agriculture, climate, and energy. Kamson highlighted the importance of supporting mission-driven founders with high-risk capital, emphasizing that Africa’s challenges and needs extend beyond fintech investments.
Omoigui added, “Africa’s golden age of entrepreneurship, job creation, and household lift will demand that mission-driven founders be backed by high-risk capital.” The launch of this cleantech-focused fund precedes the annual United Nations climate change summit, known as the Conference of the Parties or COP28, scheduled to commence in Dubai, United Arab Emirates.
As global leaders gather for the summit, discussions are expected to cover diverse issues, prominently featuring talks on climate financing. The focus will be on exploring avenues to assist developing nations in addressing the challenges posed by climate change. EchoVC aims to contribute to the ongoing dialogue on sustainable solutions and investments in the fight against climate change.