The Brief

The Brief: At SXSW, champions of equity in tech sketch visions for ‘the after’

ImpactAlpha · March 12, 2025

Greetings Agents of Impact!

🔌 Today’s PluggedIn: Financing a just climate transition. The Trump administration has derided “frivolous” spending in the name of climate equity (see below). For the Justice Climate Fund, equitable access to clean energy is a community priority and good business. The network of more than 1,200 community development financial institutions was awarded nearly $1 billion under the Greenhouse Gas Reduction Fund to support lenders financing the low-carbon transition. Justice Climate’s Amir Kirkwood will join Sherrell Dorsey on today’s PluggedIn to share strategies from diverse LPs and GPs who are transforming climate investing. Tune in today at 10am PT / 1pm ET / 5pm London. RSVP for call in details.

In today’s Brief:

Champions of equity in tech at SXSW in Austin
De-risking climate startups in Africa
Aligning capital to scale decarbonization solutions
EPA raises the stakes in green bank battle

Featured: Returns on Inclusion

At SXSW, champions of equity in tech write stories for ‘the after.’ None of this is normal. Nor is it inevitable. With the Trump administration on the offense against inclusivity, and Big Tech beating a preemptive retreat, champions of responsible innovation and diversity at this week’s South by Southwest in Austin set their sights on what some already are calling “the after.” “In times of chaos there’s a chance to disrupt the status quo and build something better, something truly equitable,” Shawna Young of Camelback Ventures tells ImpactAlpha. Camelback was among dozens of builders of inclusive tech ecosystems around the country that arrived at the Texas tech and cultural festival under the banner of “equitech.” The movement, originating in Baltimore, is creating a culture of belonging in tech and providing a haven for leaders under attack. The current moment, Young says, “offers an opportunity to reimagine what’s possible.” With the share of venture capital funding going to women and people of color stuck in the low single digits, diverse entrepreneurs and innovators have been building their own inclusive tech spaces in cities around the US.

Preemptive retreat. Since Trump’s election, tech companies including Meta and Salesforce have scaled back their diversity strategies. Others, including Apple, have so-far held their ground against anti-diversity efforts, highlighting the weakness of Big Tech’s preemptive compliance with threats from the Trump administration. The buzz at SXSW: Cherryrock Capital’s $175 million raise last month. The venture capital firm, led by Stacy Brown-Philpot and Saydeah Howard, raised the large first fund in a tough fundraising environment to back diverse and underinvested founders of growth-stage startups in digital health, fintech and the future of work.

Equitech upsurge. In Austin, a defiant and diverse mix of agents of impact are telling their own stories to shape what comes next. For each of the last 200 weeks, Upsurge Baltimore has convened a diverse group of innovators for #EquitechTuesdays to celebrate Baltimore’s growing tech ecosystem. In Detroit, Black Tech Saturdays meets weekly to boost Black representation and entrepreneurship in the tech industry. “Too often, people have been gatekeeped, blocked at the door, and told, ‘You don’t look like who we think you should, so you don’t get to participate’,” said Upsurge Baltimore’s Kory Bailey at the Equitech welcome breakfast, an annual confab for diverse innovators that is organized outside of official SXSW proceedings. ImpactAlpha was Equitech’s media sponsor. “What would it look like to unlock innovation, entrepreneurship and economic growth by focusing the effort, intention, resources, assets and networks on the best ideas, no matter where they come from?” Bailey said.
Triumph over tragedy. Also making the Equitech scene were Ashley Phillips of Just, Preston James of DivInc, and Adam Phillips of Techstars. The underrepresentation of inclusive ecosystems at SXSW led Modern Tender’s Laurie Felker Jones, a Texas organizer turned inclusive tech ecosystem builder, to help bring equitech leaders from Baltimore, Detroit and Birmingham. Attending: Village Capital’s Alyssa Padron, Omidyar Network’s Aniyia Williams, Lohas’ Rick Davis, Eapen Impact’s Sandy Eapen, Brian Edwards of CSD Social Venture Fund, and Carta’s Maria Pope. “This is a very challenging time, and there’s harm being done to people and institutions and processes, and that’s not new,” Jones said at this year’s breakfast. “And as much as there are challenges, there is joy. There is prosperity.”

Keep reading, “At SXSW, champions of equity in tech write stories for ‘the after,’” by Dennis Price on ImpactAlpha.

Dealflow: Climate Finance

Equator VC nabs $55 million to de-risk climate tech startups in Africa. Climate-focused Equator clinched its $55 million debut fund, which will invest seed and Series A-stage low-carbon energy, agriculture and mobility solutions in Africa. Proparco, the French development finance institution, topped up the fund, which has been in the market since 2023. The International Finance Corp. invested $5 million last year, backed by a $1.5 million guarantee from the $30 million Korea Green Resilient and Innovative Development Program, or K-GRID. Equator’s sister firm Factor[e] Ventures, provides up to $750,000 for pre-seed and seed-stage ventures in food, water and agriculture, energy and mobility. With offices in Nairobi, Lagos and London, as well as Colorado, Equator collaborates with Factor[e] on deal sourcing, due diligence and post-investment support.

De-risking startups. Equator reached a $40 million first close for the fund in 2023 with support from British International Investment, GEAPP, Doen Participaties and Shell Foundation. The fund has made six investments and is looking to make a dozen more with checks between $500,000 to $5 million. Equator has led investments in the e-bus and e-bike maker Roam, soil organic carbon measurement company Downforce Technologies, parametric insurer Ibisa, and a merger of the UK’s SteamaCo and Nigeria’s Shyft Power that is digitizing Africa’s power grids. Equator’s Nijhad Jamal wants the fund to “de-risk investment in these startups and pave the way for larger funds to invest tens of millions of dollars at growth stages.”

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Aligned Climate Capital raises $85 million to scale clean energy ventures. Now is the time to invest in long-term climate solutions, Aligned Climate’s Peter Davidson declared on LinkedIn yesterday. The second fund from the New York-based fund manager is twice as large as its $42 million first fund. Aligned received commitments from the Rockefeller and Ford foundations, which invested alongside pension funds, corporations, endowments and family offices. To return capital to investors more quickly, Aligned is targeting companies with proven solutions in electric mobility and green infrastructure, to sustainable land use and renewable energy generation. It’s avoiding startups with long pathways to commercialization. Aligned’s “approach reduces risk while expanding clean energy access, making proven technologies more impactful for US communities adapting to a changing energy landscape,” said Rockefeller’s Maria Kozloski.

Clean and climate tech. Aligned’s second fund has backed nine companies, including Los Angeles-based ChargerHelp!, a Black women-led company training and hiring local technicians in US cities to repair EV chargers (see Agents of Impact). BoxPower is a California-based developer of hybrid solar and storage microgrids in rural communities. Spokane, Wash.-based CarbonQuest captures and repurposes carbon emissions from buildings and onsite power generation systems for industrial use. Scaling these companies “requires capital, expertise and market access,” said Davidson.

Impact carry. Aligned has touted the integration of ESG into its investment process. The fund manager will allocate 3% of the new fund’s carried interest to three nonprofits: the Honnold Foundation, to expand access to solar in underserved communities; the Climate and Clean Energy Fund to support climate justice and equity-focused grassroots organizations; and Impact Capital Managers, the New York-based coalition of global private impact fund managers. The new fund brings Aligned’s total raised for the venture strategy to $145 million.
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Dealflow overflow. Investment news crossing our desks:

Gaia Impact, Schneider Electric Energy Access Asia, Wavemaker Impact and the Global Innovation Fund invested $4.25 million in a Series A round for Singapore’s Agros, which offers solar-powered irrigation systems. (TNGlobal)

California-based direct air capture company Capture6 landed $27.5 million Tetrad Corporation, Hyundai Motor Group’s ZER01NE Ventures, Energy Capital Ventures and others. (TechNews180)

South Africa’s First National Bank invested in Everlectric, which sells and leases electric vehicles and charging equipment. (Empower Africa)

Signals: Policy Corner

EPA raises the stakes in battle over $20 billion in green bank grants. Capping a day of legal maneuvering, the Environmental Protection Agency’s chief Lee Zeldin officially terminated $20 billion in green lending financing under the Inflation Reduction Act. The Coalition for Green Capital and Power Forward Communities earlier in the day filed suit against Citibank, the funds’ custodial agent, to gain the release of congressionally appropriated funds held by the bank as part of the Greenhouse Gas Reduction Fund. Climate United, the largest recipient, had filed suit against Citi and the EPA to release the funds last weekend (see, “Climate United carries legal banner in battle for the green bank”). A federal judge will hold a hearing on Wednesday on Climate United’s request for a temporary restraining order. It was unclear whether Zeldin had issued a last-minute “notice of exclusive control” to trigger a contractual clause and give the EPA legal cover. That would require a finding in writing of fraud, waste or abuse. Zeldin said only that he had identified “material deficiencies” in the program “which pose an unacceptable risk.” Grants are generally considered legally enforceable contracts. The move comes ahead of grand jury appearances by GGRF awardees as part of a Department of Justice investigation into the program. Other legal battles we’re watching:

DOGE and HUD axe affordable housing contracts. The US Department of Housing and Urban Development, or HUD, has canceled millions of dollars in contracts with affordable housing providers, reports Bloomberg News. Affected organizations include Local Initiative Support Corp. and Enterprise Community Partners, which administer grants and provide technical assistance to affordable housing projects across the country. The two nonprofit lenders also are part of the Power Forward Communities coalition, which Tuesday filed suit to unblock financing for energy efficiency retrofits under the Greenhouse Gas Reduction Fund. The contract cancellations come after Elon Musk’s Department of Government Efficiency reviewed the nonprofits’ websites and LinkedIn profiles for terms associated with diversity, equity and inclusion, or DEI.
Republican rally for clean energy tax credits. Red states and districts benefited the most from the surge in private investment and job creation spurred by the Inflation Reduction Act. Now, 21 Republicans, led by Rep. Andrew Garbarino of New York, have penned a letter to Rep. Jason Smith of Montana, chair of the House Ways and Means Committee, urging preservation of the act’s clean energy tax credits. “We need the projects that are currently under development to be brought online so we can continue the President’s ‘America First’ agenda,” Garbarino told Politico. SJF Ventures’ David Kirkpatrick hailed the bipartisan support and pledged, “I will be back in DC next week with many from Impact Capital Managers to advocate for policy stability to preserve the jobs, investment, infrastructure, savings, resilience and American competitiveness.”
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Agents of Impact: Follow the Talent

JFFVentures adds Blackstone’s Molly Pearl and Hilton’s Elizabeth Lane to its corporate innovation council, made up of leaders from Jobs for the Future’s corporate network to support JFFVentures’ portfolio companies… National Cooperative Bank welcomes Royce Kim, previously a commercial credit analyst with Heritage Financial Credit Union, as a capital markets analyst… Salesforce Venture Impact Fund is recruiting a senior analyst in San Francisco… Autodesk has an opening for an energy and materials investment lead in Denver… Citi Impact Fund seeks a vice president in New York… EQT Foundation is looking for someone to lead its “Climatebrick” project in Stockholm.