Azolla Ventures invests in breakthroughs that could avert catastrophic climate change. They focus on ventures at the earliest stages, where risk and reward are highest. Their priority is impact first: every investment holds the potential for large-scale greenhouse gas reductions and a more just climate for all. Founded by Prime Coalition and enabled by catalytic capital, they seek out bold entrepreneurs from all corners and embrace opportunities outside of venture norms.
Amy Duffuor is the co-founder and General Partner of Azolla Ventures. She is also a Managing Director at Prime Impact Fund, Azolla Ventures’ predecessor vehicle. Her professional background spans business, finance, and impact across three continents. Amy has served as a board member for Azolla Ventures portfolio companies Heaten and Carbon Reform, as well as Prime Impact Fund portfolio companies Clean Crop Technologies, Noon Energy, and Ovipost.
In addition, Amy serves on the board of the Northeast Clean Energy Council (NECEC); the Leadership Council of Activate, a nonprofit that empowers scientists to bring their research to market to address climate change; the Advisory Council of ReFED, a national nonprofit focused on food waste; and the Advisory Board of GreenTech Noir, a global community for Black people working in sustainability and climate tech.
Show Notes:
[01:16] - Amy walks us through the co-founding of Azolla Ventures and how it began with the Prime Coalition and a mission to use catalytic capital to drive climate innovation.
[02:09] - Catalytic capital is tax exempt, structurally patient and more flexible, and it can be used to de-risk technologies for downstream investors.
[05:13] - Azolla Ventures helps lessen risk through a unique funding model that combines both catalytic capital with more traditional venture capital.
[07:04] - They invest in pre-seed, seed, and Series A rounds in hardware based companies. Hardware requires a longer investing horizon.
[07:26] - There are three key evaluation investment criteria that underscore the importance of catalytic capital in their model. 1. Gigaton scale climate impact. 2. Additionality. 3. Attractiveness to downstream commercial capital.
[12:26] - There are often other investors investing alongside Azolla Ventures. They try to be thoughtful about how they put these syndicates together.
[14:39] - Amy talks about how Azolla sources potential investment partners.
[16:14] - Azolla has a unique process that begins with a pitch to a member, then a full-team pitch, then it's time for the investment advisory committee who help with the last two steps of additionality and downstream funding.
[20:09] - Most companies raise rounds with 18 to 24 months of runway.
[21:34] - First tip is to understand what stage your company is at and realize it may not be the right stage for venture capital.
[22:43] - Be confident about demonstrating your expertise but humble about what you don't know.
[23:58] - Be coachable and agile.
[24:38] - The driving motivation for Azolla is large-scale climate impact.
[26:08] - Challenges include the long investment horizon and capital intensity and the project financing valley of death.
[29:05] - Founders need to be commercially minded and focus on customers and partners towards the later stages.
[29:53] - Amy's advice is don't be so focused on the job, be focused on the skill sets that you're gaining.
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