Ayodeji Ayenuwa
EchoVC has launched a $2.5 million fund, EchoVC Eco Pilot Fund I, in collaboration with the Shell Foundation and UK Aid, to invest in cleantech startups across Africa.
The fund focuses on the agriculture, climate, and energy sectors, aiming to address funding gaps in these impact-focused areas.
Eghosa Omoigui, Managing Partner at EchoVC, highlighted the fund’s objective to support founders with initial institutional checks and assist in syndicating financing rounds.
“Our Eco Pilot Fund I is not just any fund but a strategic first-step initiative designed to address the funding gap in specific impact-focused sectors and their respective value chains,” said Taiwo Kamson, Principal at EchoVC.
The fund aims to make a lasting impact on innovative solutions in agriculture, climate, and energy, contributing to Africa’s entrepreneurial growth and development.
The fund, launched a few days ahead of the annual United Nations climate change summit (COP28) in Dubai, aligns with discussions on climate financing.
As global leaders gather for COP28, EchoVC positions itself to contribute to the dialogue on tackling the challenges of climate change in Africa.
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EchoVC’s strategic approach targets Kenya and Nigeria, with a focus on boosting agricultural productivity, improving market access for farmers, and introducing cooling and energy storage technologies.
Special attention will be given to supporting electric 2 and 3-wheelers in these countries due to urbanization and transportation challenges.
Energy and climate-tech startups, displacing fintech in venture capital interest, have attracted EchoVC’s attention.
The $2.5 million Eco Pilot Fund I, backed by undisclosed Development Finance Institutions (DFIs), plans to invest up to $200,000 in 8 to 10 promising climate tech and energy startups across Africa.
“As we see more mid-sized and large funds coming to market to back climate and energy startups, we have struggled to find any that are set up to take first money risk or do the work to help kickstart the companies that will later be candidates for investment by these funds,” pointed out Taiwo Kamson, a principal investment officer at EchoVC.
Founded in 2011, EchoVC, known for its rigorous due diligence and hands-on involvement, has deployed around $41 million across various funds. The firm, earlier this year, ventured into blockchain with an $8 million fund.
With the EchoVC Eco Pilot Fund I, the firm aims to stay ahead of the growing interest in eco-friendly investments.
Future plans include raising additional funds to support promising startups emerging from its initial pilot investments, with insights gained contributing to the larger 2024 Eco Fund.
Techrectory with Agency Report.
