Why Awesome Ventures Invests in Climate Change

Why It Matters: The Case for Food Sustainability

We currently utilize approximately 80% of our agricultural land for animal husbandry. In some markets, a staggering 80% of cultivated grain is dedicated to feeding livestock. This presents a significant opportunity: if global consumption patterns shift, we can redirect these precious resources away from livestock farming.

A greater emphasis on plant-based and alternative proteins can substantially improve and enhance global food security. This shift is critical because while livestock contributes around 18% of our total caloric intake, its production monopolizes a vast majority of agricultural land. Resources like land, water, and grains could be more efficiently used if we diversify our protein sources.

Recent extreme heat waves, such as those affecting food production in India, underscore this urgency. Estimates suggest that current global grain stores might only sustain the world for approximately 73 days. Populations with lower incomes are particularly vulnerable to the ensuing food price increases.

Fortunately, modern technology in agriculture offers powerful tools to improve and enhance food security, paving the way for a more resilient and equitable food system.

Our Conviction: Investing in ClimateTech Through Economic Cycles

Separately, a key question arises: should we invest in climate technology, especially amidst fears of a recession?

When we formulated our investment thesis at Awesome Ventures, a core consideration was identifying sectors that represent long-term value creation, even during economic downturns. ClimateTech stands out.

The tailwinds for this sector are exceptionally strong, driven by a “virtuous circle” where the newest technologies are not only performing impressively but are also becoming increasingly cost-effective. Prime examples include the rapid advancements in electric vehicles, the burgeoning field of alternative proteins, and the expanding horizons of alternative energy sources like solar and hydrogen.

Energy storage solutions and other renewable sources are developing at an unprecedented pace, attracting significant capital deployment even in challenging economic environments.

Furthermore, the policy landscape is robust, with consistent customer demand for greener alternatives. Governments and corporations worldwide have intensified their commitments to addressing climate change and promoting sustainability. Just three or four years ago, many in the capital markets were hesitant to invest in food sustainability and climate technology startups. Today, we observe a promising pipeline of high-quality deals, and investors are increasingly eager to participate.

Companies and governments alike have doubled down on their sustainability and climate targets. The tailwinds initially supporting ClimateTech are now evolving into a formidable force—a hurricane of opportunity and necessity.

About the author
YekSoon LOK is the Founding Partner of Awesome Ventures, backing visionary early-stage teams in ClimateTech, FinTech, and frontier markets. His portfolio includes Twilio, RedHat, Cloudflare, and early positions in BTC, ETH, and XLM. He writes about venture strategy, emerging tech, and founder insight. Connect at LinkedIn.