$150,000
Returnable grant from FSD Africa to Holocene
$2 million
Additional investment raised by Holocene following the grant
7
New climate tech start-ups invested in by Holocene
$20 million
Target size of Holocene’s second fund
The problem
Promising climate tech start-ups are emerging across Africa. However, most of them struggle to grow because they can’t access the investment they need.
Africa receives just 0.6% of global equity funding for start-ups, and only a third of that goes to climate tech businesses. Many investors see climate innovation as an unproven sector in Africa, and are reluctant to take what they see as a risk.
Without investment, early-stage climate ventures can’t scale their solutions, stifling the growth of the sector and slowing green economic development across the continent.
The solution
In 2024, FSD Africa provided a returnable grant of $150,000 to Holocene, an early-stage climate investment fund based in South Africa.
Holocene invests in climate tech start-ups across Southern Africa – businesses that are developing innovations in energy, e-mobility, food and agriculture. It combines capital investment with venture-building support, providing practical advice on finance, strategy, culture and operations.
FSD Africa’s grant aimed to help Holocene establish the capital for its first fund and identify promising start-ups to invest in – with a broader aim of increasing the flow of climate tech deals in Africa, to spark further innovation and grow the sector.
The impact
Our grant provided working capital to finance Holocene’s operations, which directly encouraged others to invest in the company, resulting in additional $2 million in funding. As a result, Holocene has invested in seven new climate tech start-ups.
Among them are Switch, which provides solar power solutions in South Africa. Holocene’s investment and advice has helped the business improve its commercial strategy, identify new clients and hire three new team members.
Holocene has also invested in ScootHero, a start-up that supplies electric bikes for food and grocery delivery. The funding enabled ScootHero to finance a new fleet of vehicles, while Holocene’s advisory support improved the company’s strategy and investor pitch.
“FSD Africa’s support has given us validity”
Said Abby Stern, Head of Portfolio at Holocene . They are now turning their attention to raising a second fund of up to $20 million.