Why Awesome Ventures invests in climate change

published on 23 August 2022

Why It Matters:

  1. We use around 80% of agricultural land for animals; in some markets, 80% of grain is feeding livestock.
  2. We can divert precious resources from livestock farming if consumption patterns change.
  3. More plant-based and alternative proteins can help improve and enhance food security.

The shift toward plant-based proteins may benefit food security. Around 18% of calories come from livestock, but 80% of agricultural land is utilised for livestock. Precious resources like land, water and grains are often diverted from livestock farming if consumption patterns change.

We are increasingly emphasising more plant-based and alternative proteins to create food security.

Extreme heat waves affected food production in India and estimated that grain stores would only be able to sustain the world for around 73 days. People with lower incomes are especially susceptible to food price increases.

Modern technology in agriculture can improve and enhance food security.

ClimateTech investment

Separately, we may invest in climate technology despite recession fears.

When we drew up our investment thesis, we asked ourselves, “Where are the long-term value creators in a recession?”

The tailwinds are strong thanks to a “virtuous circle” of the newest technologies performing well and becoming more cost-effective. These include electric vehicles, alternative protein, and alternative energy like solar and hydrogen.

Energy storage and other renewable sources are expanding at an unprecedented pace. And other people are still looking to deploy capital in that environment.

Meanwhile, the policy environment is robust, and there is customer demand for green alternatives. Governments and corporations have doubled down on climate change and sustainability.

Three or four years ago, most capital markets avoided investing in food sustainability and climate technology startups. Now, we see a promising pipeline of deals and investors are queuing up.

Today companies and governments have doubled down on sustainability and climate targets.

The tailwinds for climate tech are turning into a hurricane.

About YekSoon

I am a Partner at Awesome Ventures

We invest in wonderful technology businesses from Seed to Series A stage.

Read more

Built on Unicorn Platform