Aions Ventures, a South African venture capital firm, believes the country’s next billion-dollar startup will emerge from climate, energy or water innovation rather than fintech. The firm has backed that conviction with a new R100 million ($6 million) seed fund.
Aions Ventures CEO Kerryn Campion told TechCabal that the Johannesburg-based company has launched Aions Seed Fund I to support early-stage startups developing solutions in climate technology, energy innovation, water sustainability and the broader digital economy.
For years, African venture capital has been dominated by fintech. But a growing group of investors believes the continent’s next breakout company will emerge from climate, energy or water technology. As South Africa battles energy insecurity, water shortages and ageing infrastructure, Aions Ventures is betting that solving these challenges could create startups capable of scaling across Africa and other emerging markets.
The fund includes R60 million ($ 3 million) allocated through the High Impact Seed Fund of Funds (HISFoF), a R300 million (R18 million) initiative managed by the SA SME Fund and backed by the Technology Innovation Agency (TIA). TIA has committed a further R40 million ($2.5million), bringing the fund’s total capital to R100 million ($6 million).
As software and fintech markets mature, Aions sees growing investment potential in sectors such as climate technology, energy innovation and water sustainability.
“South Africa’s biggest constraints are now becoming our biggest markets,” said Campion, arguing that challenges such as energy insecurity and water scarcity have become major cost centres for households and businesses, creating opportunities for technology-driven solutions.
The investment reflects a broader shift as investors increasingly channel capital into climate-tech and energy-transition businesses. According to Campion, startups that make energy more reliable, reduce water losses and help businesses adapt to climate pressures are becoming more attractive investment targets.
For South Africa, years of load shedding and growing concerns over water security have created an opportunity to develop solutions with export potential.
“If a solution can work here, where there are infrastructure constraints, affordability challenges, municipal complexity and grid limitations, it can definitely work across Africa and other emerging markets,” she said.
Campion believes the next South African unicorn is unlikely to emerge from another payments app or digital wallet. “It will likely come from a company solving a major infrastructure challenge in a way that can be replicated across the continent,” she stated.
The fund also aims to address a persistent weakness in South Africa’s startup ecosystem: the shortage of capital available between seed stage and institutional growth funding.
“Too many promising South African startups stall before they reach scale,” Campion said. “This fund backs founders earlier and gives them the support they need to build businesses ready for follow-on investment.”
Aions has already backed startups including Delivery Ka Speed, a logistics and delivery company, and SpaceSalad Studios, a gaming startup. For founders, the value extends beyond funding.
“Aions Ventures encouraged us to think beyond immediate opportunities and focus on building a scalable business,” said Thabo Tsolo, Managing Director of SpaceSalad Studios. “Their support has helped us become more disciplined as we prepare for the next stage of growth.”
The launch aligns with broader efforts by institutions such as the Technology Innovation Agency and SA SME Fund to close South Africa’s commercialisation gap and expand access to early-stage funding.