Capital to Bridge the Innovation to Industry Gap
The Green India Fund invests in climate and environment startups with the ability to deliver exponential climate impact and long-term compounded returns.
It funds innovation-based businesses with the potential to redefine the environmental impact of their sector. To bridge the innovation-to-industry gap, investments are made at the pre-growth inflection point, aligning capital, resources and market access. Funded startups are supported in achieving:
techno-commercial viability with industry partners
capital efficient business models that unlock customer adoption and growth
validation of financing models and access to capital providers
The fund leverages a structured (blended) equity model to bring risk capital earlier into the investment cycle, derisk product adoption and catalyse the business models that can drive growth.
ACT For Environment Fund is a venture philanthropy PLUS model backed by leaders from the Indian VC and startup ecosystem. The fund leverages flexible capital, the “startup way” and the ACT network to catalyze and scale climate impact in nascent sectors. Green Artha is the founding Fund Manager and has worked with the anchors to develop the strategy, articulate the fund thesis, and build the portfolio.
As part of our work with ACT and in partnership with Boston Consulting Group, we have launched the Green Startup Pledge (GSP). GSP is the world's first climate pledge designed for startups, and demonstrates the leadership role played by the Indian startup ecosystem. First announced at UNFCC COP27, the Pledge will help Indian startups build businesses that are both more ecological and economical, while taking into account the dynamics of the markets they work within.
Climate Capital Network (CCN) is a group of +50 climate capital allocators across sectors, stages, and capital instruments (equity, debt, and grants). Through CCN we increase existing climate funding by reducing diligence friction, and sharing expertise; foster collaborative capital by facilitating relationships between funders across the spectrum, and mobilize new capital by creating a better understanding of the space. The network hosts regular learning sessions, facilitates member connections across sectors and capital types, and operates a platform for sharing news, deals, and sector reports.
Outcomes Exchange (OX) is a Results-Based Climate Finance (RBCF) platform that extends the economic benefits of creating climate outcomes to small producers and a variety of climate outcomes not captured or valued in existing finance mechanisms. Leveraging the benefits of an over-the-counter (OTC) marketplace, the platform lowers transaction costs, provides flexibility, and increases transparency by registering contracts for climate outcomes based on mutual consent. We are building in collaboration with WWF India, ReConnect, and Alsisar Impact and supported by ANDE (Aspen Network of Development Entrepreneurs).
The innovations that will have the greatest impact on climate will replace high polluting products, processes and infrastructure. Digital innovations may deliver incremental benefit by optimising existing systems, however, like the digital revolution required PCs and smart phones, the green economy will require a foundation of hardware, heavy assets, green chemicals, new materials, and real businesses to scale. Software cannot eat carbon.
Speed & Scale
Rapid adoption of scalable mitigation and adaptation technologies will create compounding climate benefit. There is a time-value of carbon – CO2e saved today is more valuable than that saved in the future. Benefits of saving CO2e today are realised through slowing the pace of reaching tipping points, the difference in baked-in warming, and scale-up of models that will deliver further carbon savings in the future.
Capital Efficiency &
Capital Efficiency, realised through appropriate financial tools and business models, is necessary to accelerate adoption of climate innovations and achieve global climate goals. Capital flow are dramatically less than projected requirements. As a sector, fewer financial instruments are available to support the growth and adoption of climate tech, despite touching every aspect of the economy. Financial innovation will drive the transition.
India, as a country, may have the single greatest impact on achieving global climate goals. At the inflection point for rapid economic growth, India will use 70% of the 1.5° carbon budget if it follows China's development path. With proven capabilities developing high-quality affordable technologies, India can leapfrog legacy systems to support its own economic development and demonstrate a new trajectory for other developing markets.