Azolla Ventures: Using Catalytic Capital to Fund Novel Climate Technologies

Many of the technologies needed to address climate change are not easy to fund with the traditional venture capital model that is developed around software. They can require significant upfront investment, take years to reach commercial scale, and operate in sectors where markets and regulations are still evolving.Amy Duffuor, Co-Founder and General Partner at Azolla Ventures, joins Climate Rising to explain how catalytic capital can help bridge that financing gap. She describes Azolla’s approach to investing in early-stage climate technologies that have the potential for large-scale emissions reductions but may be too early, capital-intensive, or unconventional for traditional venture investors. Amy shares how Azolla sources and evaluates investments, why the firm prioritizes additionality and freestanding unit economics when choosing what to fund, and how it supports founders beyond providing capital. She also shares examples from long-duration energy storage company Noon Energy and geothermal company Zanskar, and discusses emerging opportunities in super pollutants, water, and other underfunded areas of climate technology.

Note: guest host John Mulliken is both an HBS professor and an Operating Partner at Azolla Ventures.