In a significant move to bolster African climate-tech landscape, FSD Africa is making a strategic investment in Holocene, a venture capital provider focused on supporting innovative climate start-ups. FSD Africa’s Early-Stage Finance Pillar has committed US$150,000 to the Holocene Ventures Fund (HVF), which aims to raise an initial US$2 million to invest in a diverse portfolio of 12 high-impact climate businesses. This funding is designed to lay the groundwork for a larger $30 million climate tech fund targeting pre-seed to Series A investments in 2025.
Mary Kashangaki, Assistant Manager for Digital Innovations at FSD Africa, emphasized the necessity for innovative financing models to support Africa’s green transition. “We need to think differently about how we finance Africa’s green transition,” she stated. “FSD Africa’s investment in Holocene offers an exciting opportunity to work with experts to build a new kind of venture capital fund that is flexible enough to meet the unique financing needs of early-stage climate ventures.”
Holocene, headquartered in South Africa, has developed an investment platform tailored for both climate-conscious individual and institutional investors seeking to achieve both climate positivity and competitive venture capital returns. The HVF will provide innovative pre-seed financing, combining cash investments with venture-building services to support climate tech start-ups. This dual approach recognizes the critical need for diverse financial solutions to help scale climate-focused enterprises.
Josh Romisher, CEO of Holocene, highlighted the importance of Africa in the global climate narrative. “Africa is incredibly important in the global climate conversation,” he remarked. “Holocene is very eager to partner with innovative investors such as FSD to prove that African climate tech can deliver measurable climate impact and venture capital returns.”
To date, Holocene has successfully executed six investments through its permanent capital vehicle and an additional four investments via HVF I. The firm plans to make five investments annually, aiming to infuse each venture with a strategic blend of financial and human capital, focusing on achieving substantial commercial outcomes.
The increasing collaboration between diverse stakeholders, including governments, non-profits, and private investors, is expected to catalyze green growth across the continent. Specialist climate-focused investment funds like Holocene are anticipated to enhance capital flows and spur innovation in new climate technology solutions throughout Africa.
As the urgency to address climate change intensifies, initiatives like HVF are critical in creating a sustainable framework that not only fosters economic growth but also contributes to the global fight against climate change. With the support of investors such as FSD Africa, Holocene is poised to play a pivotal role in shaping Africa’s climate-tech future.