BFA Global and FSD Africa announce the launch of TECA, a first-of-its-kind venture launcher (Triggering Exponential Climate Action).
With an initial focus on Africa, the launcher will create fintech startups with solutions that promote climate resilience in the world’s most vulnerable communities.
TECA will support pioneering entrepreneurs from idea to launch with FSD Africa’s $3.3 million investment over four years, boosting the pipeline of investable opportunities in the fintech for climate resilience space.
FSD Africa’s support will also help accelerate the ecosystem around the ventures by engaging with a variety of stakeholders to help unlock capital, attract talent, and provide proof points for additional climate resilience innovation.
“At FSD Africa, we believe that a strong, fair and accessible financial system is crucial to a sustainable future for Africa’s people and its environment. In particular, we believe that finance can play a major role in tackling climate vulnerability and that by harnessing the power of fintech innovation we can help address market barriers to building out much needed climate resilience solutions. ” Juliet Munro, Director, Digital Economy at FSD Africa said.
Julliet noted that the challenge for Africa is that this innovation is stifled by a weak ecosystem, reflected in low early-stage investment. ”Our partnership with BFA Global on TECA aims to address this by originating, investing in and growing a pipeline of climate resilience ventures, while helping to influence and expand the pool of investment into this space.” she added.
According to the IPCC Sixth Assessment Report released earlier this year, up to 3.6 billion people live in contexts that are highly vulnerable to climate change, with some of the largest impacts observed in areas and communities across Africa. However, solutions require significant further development and are largely not yet accessible, affordable, or available to the populations most at risk.
David del Ser, Chairman and Chief Innovation Officer at BFA Global, said: “TECA will help to create pipeline at the nexus of fintech and climate resilience by backing entrepreneurs with bold ideas that build the resilience of vulnerable communities and natural ecosystems. We are looking for top talent that can push the boundaries in solving these large systemic challenges. By helping to launch new ventures responding to these emerging issues, our vision is to help create an ecosystem abundant with innovative solutions fortifying the climate resilience of vulnerable populations and the planet.”
TECA’s mission is to enhance 100 businesses by 2026, including at least 60 of them in Africa. These ventures will help vulnerable communities achieve climate resilience while also providing investment opportunities for other ecosystem players.
The first cohort of TECA entrepreneurs will work in East Africa’s Blue Economy, focusing on activities that generate livelihoods and ecosystem services from bodies of water such as seas, lakes, and rivers. Potential founder applications are now being accepted.