Is Climate Adaptation VC-Backable?

Is Climate Adaptation VC-Backable?

Author: Hugo Rauch September 11, 2025 Duration: 50:27
New Wave.
BusinessScience

Brought to you by:

Accelerating Impact - an independent non-profit advancing impact finance by mobilizing capital toward sustainable development and running free accelerator programs for emerging fund managers (ICFA, ISFA). Join for expert coaching, training, financial support, and a strong peer community. Contact them here.

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Climate change is no longer a scientific forecast. It's a daily reality for many people in the Global South.Crops are failing, cities are flooding, and wildfires are becoming the norm.

Yet, only a fraction of climate finance goes toward climate adaptation solutions.

Why does adaptation remain so drastically underfunded?And what does it take to invest in adaptation?

To unpack this complex topic, today we are joined by Timothy Rann, Managing Partner at Mercy Corps Ventures. Timothy has led over 70 investments in emerging markets with one goal: to build real climate resilience where it matters most.

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What we discussed:

Adaptation vs mitigation: why we need both

Why adaptation finance lags despite a $300B funding gap

The missed opportunities for global investors

Investment case studies with Pula and Meridia

The role of governments, regulations, and public goods

… and more!

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References:

Mercy Corps Ventures

LinkedIn - Timothy Rann

Pula (agricultural insurance)

Meridia (farm data & traceability)

Wasoko (supply chain resilience)

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In this episode, we cover:

(00:00) Introduction & Sponsor

(01:57) Adaptation vs. Mitigation

(11:39) The Case for Adaptation

(18:20) Investment Strategies in Adaptation

(25:57) The Social Mission of VC?

(34:49) Investing in Adaptation

(47:31) Can You Make Money in Climate?

(49:52) Fire Questions 🔥

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Who’s next?👀

Next week, I’ll be joined by the Head of Sustainability at Daphni to unpack the role of ESG in venture capital. Too often dismissed as box-ticking, ESG can actually be a powerful framework for building resilient, future-proof startups. Stay tuned to learn more.



This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit newwavenewsletter.substack.com

Hugo Rauch hosts New Wave, a podcast that lives at the intersection of business ambition and scientific reality. This isn't about distant predictions or abstract science; it's a grounded exploration of the technologies and companies being built right now to address our environmental future. Each episode focuses on the practical journey, dissecting the models, the breakthroughs, and the hard decisions that define the climate tech landscape. You'll hear from founders, researchers, and investors who are actively shaping this space, getting into the specifics of what works, what doesn't, and why. The conversations move beyond hype to examine the tangible mechanics of creating viable solutions, from energy storage and sustainable materials to carbon removal and regenerative agriculture. It’s for anyone who thinks about the climate challenge not just as a crisis, but as a complex and urgent field of innovation. By tuning into this podcast, you gain a clearer understanding of the economic forces and scientific principles driving the next generation of environmental solutions. New Wave connects the dots between the lab, the boardroom, and the impact we need to see in the world, offering a sober yet optimistic look at where substantive progress is truly being made.
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