Aions Ventures, a South African venture capital firm, believes the country’s next billion-dollar startup will emerge from climate, energy or water innovation rather than fintech. The firm has backed that conviction with a new R100 million ($6 million) seed fund.
Aions Ventures CEO Kerryn Campion told TechCabal that the Johannesburg-based company has launched Aions Seed Fund I to support early-stage startups developing solutions in climate technology, energy innovation, water sustainability and the broader digital economy.
For years, African venture capital has been dominated by fintech. But a growing group of investors believes the continent’s next breakout company will emerge from climate, energy or water technology. As South Africa battles energy insecurity, water shortages and ageing infrastructure, Aions Ventures is betting that solving these challenges could create startups capable of scaling across Africa and other emerging markets.
The fund includes R60 million ($ 3 million) allocated through the High Impact Seed Fund of Funds (HISFoF), a R300 million (R18 million) initiative managed by the SA SME Fund and backed by the Technology Innovation Agency (TIA). TIA has committed a further R40 million ($2.5million), bringing the fund’s total capital to R100 million ($6 million).
