Ventures Platform, an early-stage venture capital fund investing in innovative startups across Africa has published its landmark climate tech white – paper entitled, “Innovating for a Sustainable Future: Leveraging venture capital and startup Innovation to combat climate change in Africa.”
Formally launched at the recently held Africa Prosperity Summit in Lagos, the paper explores how the agility and innovation of startups, combined with the strategic deployment of venture capital, can catalyse the development and scaling of climate-smart solutions tailored to the specific needs and challenges of African communities and ecosystems.
Furthermore, Africa Business communities reports that the paper offers insights to climate tech startups on how to secure and maintain venture capital support, while providing an in-depth analysis of how venture capital and startup ecosystems can act as powerful engines of progress in the face of environmental adversity.
Since launching in 2016, Ventures Platform has funded over 90 startups, with at least one in every region of the continent and across various sectors including climate tech.
Many of its startups are category leaders in fintech, healthtech, and insurtech, including Moniepoint, Mdaas Global and Tanel Health.
While not primarily a climate fund, Ventures Platform recognises the importance of sustainable investments for long-term prosperity and has factored this into its investment guidelines by prioritising businesses that implement sustainable practices, reduce environmental impact and drive long-term ecological benefits.
Drawing from its own learnings as a key player in Africa’s tech ecosystem and from broader research, Ventures Platform has published this climatetech white paper to better equip non-climate Venture Capitalists (VCs) and startups with insights and tools to support Africa’s climate resilience through strategic investments and operational choices.
According to the United Nations, Africa contributes under four per cent of the global greenhouse gas emissions yet suffers disproportionately from climate change.
In this white paper, Ventures Platform proposes a simplified framework focusing on adaptation, mitigation and enablers, to guide the African VC and startup ecosystem in addressing climate challenges.
Adaptation strategies include developing climate- resilient infrastructure and agricultural practices.
Mitigation efforts focus on reducing greenhouse gas emissions through renewable energy adoption and sustainable land use while ‘enablers’ encompass financing mechanisms, policy frameworks, educational programs, and technological innovations.
Dotun Olowoporoku, Managing Partner, Ventures Platform, said: “African VCs often prioritise impact and livelihoods along with traditional metrics, but there is an urgent need to focus on climate-resilient business models.
“After months of hard work and collaboration, we are proud to present our landmark climatetech white paper which provides an in-depth analysis of the challenges and opportunities of climate tech in Africa, our role as Venture Capitalists and startups, and the critical importance of taking a holistic and coordinated approach to fostering climate innovation.
“Climate change poses formidable threats with potential for severe impacts across multiple sectors; however building climate-resilient business models can unlock business, societal and environmental sustainability.
“As Venture Capitalists, we can drive change in Africa’s climate action by providing funds, encouraging innovation, and scaling climate-smart solutions.
“Startups like MAX, Rana Energy, and ThriveAgric, which was recognised in the 2024 TIME 100 Climate list, show how tech-driven solutions can address local issues and help global climate efforts.
“At Ventures Platform, we are deeply committed to investing in companies that are not only commercially successful but also actively contribute to solving some of society’s collective challenges.”
Commenting further on the landmark paper, Dolapo Morgan, Senior Investment Associate, Ventures Platform, said: “Africa is at the receiving end of the world’s climate disaster and it is important for us to turn this challenge into opportunities.
It is time for entrepreneurs to focus on building climate-resilient business models for long term sustainability while creating innovative climate solutions to tackle climate challenges.
“We are already beginning to see some startups and investors move in this direction and that is a good start.
This white paper is a call for a coordinated Africa response towards scaling the opportunities that climate change presents to our technology sector, emphasising the pivotal role non-climate funds can play in complementing and amplifying the efforts of climate-focused investments.”
For climate tech startups in Africa to secure and maintain venture capital support, it is crucial to demonstrate both the potential for significant climate impact as well as the ability to achieve venture scale economics.
