In a bold move to foster innovation and address the funding gap for underrepresented founders in Africa, EchoVC, a prominent seed and early-stage technology venture capital firm, has proudly introduced the EchoVC Eco Pilot Fund I. This $2.5 million ‘pilot’ fund, established in collaboration with Shell Foundation and co-funded through UK Aid from the UK Government, is set to propel groundbreaking ideas, products, solutions, and platforms in the realms of climate, energy, agriculture, and mobility.
Venturing into Impactful Sectors
EchoVC, known for its commitment to investing in underrepresented founders and underserved markets, is directing its focus towards very-early-stage enterprise development and innovation with the EchoVC Eco Pilot Fund I. Taiwo Kamson, Principal at EchoVC, emphasized that this strategic initiative aims to address the funding gap in impact-focused sectors, particularly in agriculture, climate, and energy.
Eghosa Omoigui, Managing Partner at EchoVC, asserted that Africa’s path to entrepreneurship, job creation, and household uplift requires mission-driven founders to be supported by high-risk capital. The Eco Pilot Fund I, as a first step initiative, intends to provide first institutional checks to founders, assisting them in syndicating financing rounds to further their mission.
Addressing Funding Disparities
The decision to launch the Eco Pilot Fund I was informed by EchoVC’s observation of the uneven distribution of funding to African entrepreneurs, despite a growing interest in harnessing business potential on the continent. According to data from 2017–2021, [Black] Africans accounted for 28% of CEOs and 31% of executive teams in startups winning financing deals. The distribution was even more skewed in sectors like energy, mobility, and agriculture, where only 21% of CEOs and 36% of executive teams were African.
Strategic Approach for Lasting Impact
Tsendai Chagwedera, Partner at EchoVC, explained the rationale behind the pilot fund, stating that it allows the firm to work out the challenges of backing founders in historically underfunded sectors. This strategic move positions EchoVC as one of the most experienced VC funds on the continent, aiming to finance startups that generate long-term positive financial and high-impact returns.
Key Features of EchoVC Eco Pilot Fund I
The EchoVC Eco Pilot Fund I will make up to ten pre-seed investments in African founders and startups focusing on key areas such as energy provision for agriculture, digital technologies to unlock finance for farmers, low-cost solutions for market information and training in farming practices, and value chain creation for small holder farmers.
Building a Climate-Resilient Future
EchoVC envisions making a lasting impact by contributing to the growth and success of innovative ventures in designated impact areas, creating jobs, uplifting incomes, and expanding the reach to customers. The firm aims to nurture groundbreaking ideas to their full potential, shaping a future where innovative ventures are not only funded but also supported in reaching their pinnacle.
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Calling for Visionary Entrepreneurs
EchoVC extends an invitation to visionary entrepreneurs and forward-thinking founders in Africa to connect and shape the future together. The firm expresses gratitude to its investors and anticipates making a lasting impact with the EchoVC Eco Pilot Fund I and its future funds.
EchoVC, a Black-led technology-focused venture capital firm, operates with a mission to be the Sequoia Capital for underestimated founders and markets. With offices in Lagos, Nairobi, New York, and London, EchoVC has a portfolio of nearly seventy companies, investing in technology and technology-enabled startups across various sectors and themes, including smart planet, healthcare, education, agriculture, climate, energy, AI, financial services, mobility, commerce, media, and connectivity.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard