Earth Capital

Earth Capital is a ‘Post Seed and Series A’ stage equity impact investor, which scales post revenue, commercially viable venture solutions to social and environmental issues in South Africa.   Earth Capital has emerged in response to a range of socio-economic and environmental mega-trends both in South Africa, Africa and the rest of the planet.

We exist to fill a large funding gap for early stage impact ventures, which are typically too risky or too small in investment size, to be of interest to typical institutional investors in South Africa. In partnership with our sister company, Impact Amplifier, a well established accelerator and advisory firm, our mission is to scale these early stage impact ventures, utilizing a combination of capital and capacity. 

Our success is therefore measured by finding the most talented early stage, post revenue companies and scaling them to the point that larger institutional investors can provide follow on capital. Our mission is that these companies can have a significant impact on the South African economy. 

Earth Capital is unique in that we place a particular importance on scaling ‘conscious’ entrepreneurs, who demonstrate an awareness of the complex issues facing our continent, and will play a positive and inclusive role in its development.

Approach

Earth Capital’s investment approach is to identify and develop entrepreneurs with the potential to be both “commercially scalable and impactful”. Our selection criteria is defined by a broad spectrum of metrics, but there are seven we focus on:

Scalability – How large in the commercial opportunity? And how well positioned are the entrepreneurs to tackle that opportunity? Is there a significant, demonstrable margin in the business?

Traction – Has the business demonstrated it’s ability to access the market, and to what scale?

Social impact – How does the business demonstrate clear social intent, and demonstrate the improvement and well being of the poor in underserved markets?

Equity – How does the business enhance gender and racial equality and inclusivity in terms of skills, responsibility and the distribution of economic benefits?

Environmental preservation – What will be the consequences of the business’ use of energy and water and production of waste?

Transparency/Accountability – Within both its management practices and governance how are the issues of accountability and transparency addressed?

Team – Does the founding team demonstrate the experience and skill set to execute on the business’s strategy, and manage people?

Entrepreneur Wholeness – To what degree are the founders conscious and demonstrate psychological wellbeing in how they live their life?

Impact

Earth Capital aims to create a positive impact across multiple socio-economic and environmental dimensions. The approach is both top down, and bottom up. From a top down perspective, Earth Capital has aligned its impact intentions to specific UN Sustainable Development Goals (SDGs) detailed below. From a bottom up perspective, Earth Capital works directly with its ventures pre-investment, to target specific IRIS metrics, which align to the broader SDGs targeted below, as they scale. Earth Capital has equally developed a tool for mitigating / reducing key impact risks, alongside trying to balance the impact and commercial outcomes of the ventures.  

Below are the specific SDGs which Earth Capital seeks to address: 

GOAL 1: No Poverty
Ventures which either provide products and services to the poor, directly increase sustainable economic access to the poor, are a primary focus for Earth Capital.  

GOAL 2: Zero Hunger
Ventures which improve nutrition, positively impact food security and/or promote sustainable agriculture on the continent are a focus for Earth Capital. 

GOAL 3: Good Health and Well-being
Ventures which Increase the availability of new health innovations, improve health accessibility and reduce health costs is the key focus for Earth Capital. 

GOAL 4: Quality Education
Ventures which improve quality education, at a low cost and increase accessibility through technology and blended learning, is the key focus for Earth Capital. 

GOAL 6: Clean Water & Sanitation
Ventures which provide clean, accessible and affordable water alongside adequate sanitation infrastructure is the key focus for Earth Capital. 

GOAL 7: Affordable and Clean Energy
Affordable, clean energy and decentralised energy access is key to Africa’s development. Ventures which develop technological innovations, which can improve energy access through new generation or efficiency is the focus for Earth Capital. The convergence between energy, water, and agriculture is equally of interest. 

GOAL 9: Industry, Innovation and Infrastructure
Critical, affordable infrastructure is a priority for Africa’s development. Ventures which develop technological innovations which improve infrastructure, better the livelihoods of the poor, and have a positive impact on the environment is a focus for Earth Capital. 

GOAL 10: Reduced Inequalites
South Africa is one of the most unequal countries in the world, on par with countries like Haiti. Ventures in rural, peri-urban or urban centres which lift people out of poverty, and shift economic access to the poor, is a focus for Earth Capital.Click here for more information