๐๐พ Hi friends!
Itโs a cold day in London right now with a flurry of snow to wake us up this morning!
Iโm not sure anyone can argue that snow in mid November is a normal state of affairs and itโs quite an interesting situation considering last weekโs podcast where I spoke to Afshin Moayed from Razor Capital about the potential for venture in Bangladesh and the impact of climate on the country.
If you are in the UK at the moment, all I can say is wrap up warm, itโs nippy out there!
Iโm well underway writing about all the things Iโve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance – The Book and feel free to share with anyone else you think might enjoy it ๐.
Now letโs get down to businessโฆ
In this weeks Off Balance:
๐๏ธ Afshin Moayed, Partner at Razor Capital on Nothing Ventured
โ๏ธ The impact and importance of climate tech in Bangladesh
๐ก๐ฎ๐๐ถ๐ด๐ฎ๐๐ถ๐ป๐ด ๐๐น๐ถ๐บ๐ฎ๐๐ฒ ๐ฅ๐ฒ๐ณ๐๐ด๐ฒ๐ฒ๐ ๐ฎ๐ป๐ฑ ๐๐ฐ๐ผ๐ป๐ผ๐บ๐ถ๐ฐ ๐๐ฟ๐ผ๐๐๐ต
In this episode of Nothing Ventured, I sat down with Afshin Moayed, a partner at Razor Capital, to explore the exciting landscape of venture capital in emerging markets, specifically focusing on Bangladesh and Southeast Asia.
Afshin shares insights from his extensive experience as a founder and advisor, highlighting the immense opportunities presented by large populations and the unique dynamics of these regions.
We spoke about:
๐ง๐ฉ The potential of Bangladesh as a hidden gem for investment.
โ๏ธ The looming challenge of climate change, with projections of 40 million climate refugees by mid-century.
๐ The rapid growth of the middle class, with 15 million people joining annually.
๐น Strategies to transition climate victims into contributors to the economy.
๐
The concept of “low-cost wins” and how value can be derived from unexpected areas.
๐ The viability of innovative delivery services like 15-minute grocery delivery in different markets.
๐ค Afshin’s contrarian belief that acknowledging mistakes is crucial, and that there is no financial gain in always being right.
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Off Balance
ย
My conversation with Afshin got me thinking about climate tech and emerging markets, so I thought I would take a deeper dive into the topic – especially in an economy like Bangladesh where, as Afshin noted, we are likely to see millions of climate refugees over the coming decades.
The global climate crisis is reshaping economies and driving technological innovation worldwide, with a particular focus on emerging markets like Bangladesh. As we face unprecedented environmental challenges, climate tech is emerging as a critical sector for both mitigating climate change and adapting to its effects.
Climate Tech: Driving Innovation and Resilience in Emerging Markets
The Climate Challenge in Bangladesh
Bangladesh, a nation of over 170 million people, is at the forefront of climate vulnerability. With its dense population and low-lying coastal areas, the country faces significant risks from rising sea levels, increased flooding, and more frequent extreme weather events.
By mid-century, Bangladesh could see up to 40 million climate refugees, underscoring the urgent need for innovative solutions.
Despite these challenges, Bangladesh has shown remarkable resilience and forward-thinking in its approach to climate issues. The country’s commitment to building a sustainable future for its young, aspirational population is driving the adoption and development of climate technologies.
The Rise of Climate Tech
Climate tech encompasses a wide range of technologies aimed at reducing greenhouse gas emissions, improving energy efficiency, and enhancing climate resilience. Key areas of focus include:
Renewable Energy: Solar, wind, and other clean energy sources are becoming increasingly cost-competitive and accessible.
Sustainable Agriculture: Innovations in farming practices and crop varieties are helping to reduce emissions and improve food security.
Water Management: Technologies for water conservation, purification, and flood control are crucial for climate adaptation.
Green Transportation: Electric vehicles and sustainable urban planning are reshaping mobility in climate-vulnerable areas.
Circular Economy Solutions: Technologies that promote recycling, upcycling, and waste reduction are gaining traction.
Impact on Emerging Markets
In countries like Bangladesh, climate tech is not just about reducing emissionsโit’s about survival and economic development. These technologies are creating new opportunities for local entrepreneurs and attracting investment from across the globe.
iFarmer, a Bangladeshi fintech company, exemplifies this trend. By providing financing and services to farmers, iFarmer is not only improving agricultural productivity but also enhancing climate resilience in the agricultural sector.
The Importance of Climate Tech for Bangladesh
For Bangladesh, climate tech offers several critical benefits:
Adaptation: Technologies that help communities adapt to changing climate conditions are essential for long-term resilience.
Economic Opportunities: The climate tech sector can create jobs and drive economic growth, particularly important for Bangladesh’s young population.
Sustainable Development: Climate-friendly technologies can help Bangladesh achieve its development goals while minimizing environmental impact.
Challenges and Opportunities
While the potential of climate tech in Bangladesh is significant, several challenges remain:
Funding: Access to capital for climate tech startups and projects can be limited, especially for later-stage growth.
Infrastructure: Developing the necessary infrastructure to support and scale climate technologies can be challenging.
Skills Gap: There’s a need for more trained professionals in climate tech fields.
However, these challenges also present opportunities for innovation and international collaboration. Venture capital firms like Razor Capital are playing a crucial role by investing in early-stage companies addressing these issues.
The Way Forward
As climate change continues to reshape the world, the importance of climate tech in emerging markets like Bangladesh cannot be overstated. To fully realise its potential, several key steps are necessary:
Increased Investment: Both domestic and international investors need to recognise the opportunities in climate tech in emerging markets.
Policy Support: Governments must create favorable policies and regulations to support climate tech innovation and adoption.
Capacity Building: Investing in education and training programs to build local expertise in climate technologies is crucial.
International Collaboration: Partnerships between developed and emerging markets can accelerate the development and deployment of climate solutions.
Localised Solutions: Climate tech must be adapted to local conditions and needs to be truly effective.
Conclusion
The climate crisis presents both immense challenges and opportunities for countries like Bangladesh. By embracing and developing climate technologies, these nations can not only enhance their resilience to climate impacts but also drive sustainable economic growth.
As Afshinโs insights reveal, the entrepreneurial spirit and forward-thinking approach of Bangladesh’s people are key assets in this journey.
With the right support and investment, climate tech can transform challenges into opportunities, opening a pathway for a more sustainable and prosperous future.
The global community must recognize the critical role of emerging markets in the fight against climate change. By supporting climate tech innovation in these countries, we can create a more resilient and sustainable world for everyone.
As always, my office hours are open, if youโd like to chat about this or anything else, just grab some time ๐.
I hope you found Off Balance #58 useful. As always, Iโd love to get your feedback and understand the sort of topics you would love to hear about.
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Thatโs it from me so until next timeโฆ
Stay liquid ๐
Aarish
