Climate Tech Leader Raises Fund to Help Startups Solve Urgent Needs

A climate tech leader is raising a fund to support startups in addressing critical environmental challenges. This initiative aims to empower innovative companies to develop solutions for urgent climate needs, fostering impactful change in the fight against climate change. By providing financial backing and resources, the fund will help accelerate the development and implementation of sustainable technologies.

Aina Abiodun is calling for the climate tech sector to acknowledge that communities globally are already experiencing the severe impacts of climate change and urgently need assistance to cope with these effects.

“We can't just tell people, 'We’ll solve climate change in ten years and it will all be fine,'” Abiodun emphasized. She pointed out that there are immediate needs such as exposure to smoke, children with asthma, and damage from flooding. “Let’s focus on these pressing problems,” she urged.

As the president and executive director of VertueLab, a nonprofit dedicated to climate tech innovation, Abiodun is spearheading efforts to tackle climate adaptation and resilience.

VertueLab is raising a new fund to invest in North American climate companies working both on responding to climate warming and reducing greenhouse gas emissions. The organization was selected by the Washington State Department of Commerce as one of three recipients to receive a share of $49 million in federal funding for venture capital investments, which will support this fund.

The fund will target early-stage startups, a sector VertueLab has traditionally supported, and Abiodun is keen to use these new resources to also back growth-stage companies.

Established in 2007 and based in Portland, Oregon, VertueLab offers various programs for climate tech startups, including an accelerator, federal grant application assistance, and initiatives to promote diversity, equity, and justice among entrepreneurs and impacted communities.

To date, VertueLab has invested in over 80 companies, including Ren Energy, which focuses on reducing carbon in supply chains, OpConnect, a company providing electric vehicle charging solutions, and Jiminy’s, which makes pet food from bugs and plants.

Abiodun, who took the helm of VertueLab over a year ago, brings a diverse career background to the role. She has launched startups providing climate tech financing and consulting, served as CEO of a wellness company in Berlin, and worked in brand strategy and as a creative producer for various firms.

In an interview, Abiodun discussed her journey to VertueLab and the organization’s future directions. The conversation has been edited for clarity.

The Move to the Pacific Northwest

When asked about her decision to work in the Pacific Northwest after stints in New York City, Berlin, and Los Angeles, Abiodun highlighted Washington state’s leadership in climate policy, funding, and action. Despite the region's strong conservationist sentiment, smart tech talent, and favorable policies, she noted the surprising absence of a robust climate tech industry. She saw an opportunity to leverage these factors to build a strong climate tech hub in Washington.

Challenges in Building a Climate Hub

Abiodun observed that while early-stage support for climate tech founders is robust in the region, there is a gap in later-stage funding. The active angel investor ecosystem is beneficial, but there is a need for more substantial investment and knowledge exchange to create a thriving climate tech industry. She believes VertueLab can play a crucial role in supporting entrepreneurs as they move into the next phase of development.

VertueLab's Role in Growing the Climate Sector

VertueLab is poised to announce a new fund, which Abiodun is excited about. The fund aims to push the ecosystem forward by providing mid- to later-stage de-risking, a capability enhanced by VertueLab’s nonprofit status. This allows the organization to accept foundation money and offer unique support that traditional venture capital investors might not be able to provide.

Additional Initiatives

Beyond funding, VertueLab is focused on elevating the challenges faced by underserved entrepreneurs and communities. Abiodun noted that successful climate projects often involve collaboration between government, investors, and entrepreneurs at a large scale, such as urban or suburban projects. She believes focusing on specific regional solutions can have significant impacts and create valuable outcomes.

Addressing the Climate Crisis

In her talk at The Wings Conference in Portland, Oregon, Abiodun emphasized the urgency of addressing the climate crisis. She highlighted the importance of focusing not only on long-term solutions like carbon capture and transitioning from fossil fuels to electric power but also on immediate adaptation and resilience needs. Solutions must address current impacts, such as flooding and health issues caused by climate change.

Abiodun argued that at least 50% of efforts should be directed towards adaptation and resilience. This focus can engage communities right now and source entrepreneurs from those experiencing the effects of climate change firsthand, as they are already developing practical solutions.

Conclusion

Aina Abiodun and VertueLab are working to bridge the gap in climate tech by supporting innovative solutions for both mitigation and adaptation. By raising new funds, investing in startups, and fostering collaboration, they aim to build a more resilient and responsive climate tech ecosystem. This approach not only addresses the immediate needs of communities facing climate impacts but also prepares for long-term sustainability and resilience.

Source: geekwire

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