Kenyan startup Amini, which uses data from satellites to offer insights on crop health and track farming progress, has raised funding in its pre-seed and seed rounds in six months. Key investors in these rounds included Salesforce Ventures, Female Founders Fund, Pale Blue Dot, and notably, Rally Cap VC. While this round took place in late 2023, it marked the entry of a VC firm into the climate tech sector.
San Francisco-based Rally Cap VC, a $20 million venture capital firm traditionally concentrated on fintech, has ventured into climate tech with the first close of its Rally Cap Climate fund at $2.5 million. It plans a final close at $5 million.
Climatetech: A frontrunner
The Rally Cap Climate fund led by partners Kyane Kassiri and Hayden Simmons invests worldwide in software that supports the growing green economy. It mainly focuses on early-stage companies, especially those developing B2B software for adapting to climate challenges. This approach matches the rising need for clean technology solutions, as businesses, governments, and individuals urgently seek ways to address and adapt to climate change.
Rally Cap VC mainly focuses on helping businesses in Africa and Latin America. The firm is also about to invest in a clean technology company in Brazil. Typically, Rally Cap Climate invests $50K to $100K in each company, to make around 50 investments. This approach is similar to what other funds in the firm do.
The fund’s preference for adaptation strategies aligns with the market entry ease and lower capital requirements associated with software solutions compared to hardware-intensive mitigation strategies.
The Rally Cap Climate fund’s portfolio includes the following companies:
- Amini: A female-founded Nigerian single-source for African environmental data.
- Circadian: A Nigeria-based energy management software for African developers and tower operators.
- Solfium: A Mexican C&I solar financing marketplace.
- Eli: A US-based electrification infra platform.
- Currently, the VC firm is finalising a deal in a Brazilian cleantech but the details are yet to be disclosed.