At the forefront of this movement is Holocene, a leading venture capital firm dedicated to investing in early-stage climate tech companies across southern Africa.Founded by a trio of passionate individuals, Holocene not only provides financial capital but also offers crucial human capital and support, actively building a thriving ecosystem for climate entrepreneurs.
Elodie Delagneau, Investment Project Lead at VUKA Group, sat down with Abby Stern, the Climate Culture Officer at Holocene, to gain insights into their unique approach and the challenges and opportunities they see shaping Africa’s burgeoning climate tech landscape.
Abby Stern, with her background in the agrifood tech space, brings a unique perspective to Holocene. “I was initially hesitant to get involved in climate because it felt very negative, pedantic, and intellectual,” she admits, highlighting a common perception. But a shift in perspective came with a desire to create a positive and engaging narrative around climate.
“I wanted to create a culture that attracts people like me, who are genuinely passionate about making a difference,” she explains. “Holocene is about connecting people, building a sense of community, and fostering hopefulness, not fear.”
When asked about the biggest challenges facing climate tech startups in Africa, Abby Stern emphasizes the critical need for funding, particularly in early stages. “There’s a distinct lack of capital on the continent,” she explains. “And even when there is investment interest from outside Africa, there’s often a lack of understanding of the market and its unique challenges.”
This is where Holocene steps in. They’ve become a vital bridge, connecting investors with promising startups in southern Africa and providing the guidance and support needed to navigate the complexities of the region’s climate landscape.
Holocene’s investment strategy goes beyond traditional financial investment. “We provide not only financial capital but also human capital,” Stern explains.
“With each financial investment we make, we also provide 6-9 months of focused, bespoke business building in areas we have identified as key needs for the startup to reach the next level of scale. While these workstreams are unique to each company, often we see similar needs around fundraising, building a strong culture and hiring process, and sales strategy”.
Beyond these essential functions, Holocene acts as a mentor and advisor, guiding startups through critical milestones, such as hitting fundraising targets and navigating regulatory landscapes. Their approach is deeply rooted in building trust and fostering strong relationships with their portfolio companies.
When asked about the climate solutions she’s most excited about, Stern highlights two key areas:
Holocene’s portfolio companies are at various stages of development, with a strong focus on Pre-Seed and Seed investments. They believe that early-stage investments offer the greatest potential to shape the future of climate tech in Africa.
Holocene’s selection process is focused on finding the right “wave, surfboard, and surfer.” “We look for the right trends, the right business models, and the right teams,” Stern explains.
Their “wave” is the overall trend or sector they’re excited about. “We have a list of trends we’re tracking, but we’re also constantly scouring LinkedIn, attending pitch competitions, and networking with other investors to stay on top of the latest developments,” she adds.
“The surfboard” represents the startup’s approach to solving a climate problem. They assess whether a startup’s solution is innovative, effective, and well-aligned with market needs.
Finally, the “surfer” is the team behind the startup. Holocene looks for passionate, driven individuals with a deep understanding of the market and a proven ability to execute their vision.
“It’s not just about financial returns,” Stern emphasizes. “We genuinely enjoy working with companies that share our vision for a greener future. We want to make a real difference in the world.”
Holocene’s approach to climate tech investment is not only driven by financial returns, but also by a shared commitment to building a better world. They recognise the importance of empowering entrepreneurs, fostering innovation, and shaping a more sustainable future for Africa.
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