When Priscillah Wakerera and Soinato Leboo established Rhea, an agritech startup that offers soil testing services to smallholder farmers in Kenya, in 2022 securing funding from investors proved to be significantly more challenging.
During that time, fintech and e-commerce startups remained the preferred choices for venture capitalists. Investments in climate and agritech were minimal, and founders who successfully raised funds often faced lower valuations compared to other sectors.
Rhea, which gathers and analyzes soil samples to assist farmers in selecting the appropriate fertilizers and seeds for their farms, is part of a network of African startups that attracted the attention of investors at the recently concluded AfricaArena climate summit in Nairobi. At the two-day event, Rhea received the accolade for the best climate tech startup.
It was difficult to attract investors because the emphasis on soil health improvement was not widely recognized. However, as we showcased traction in our core market and aligned ourselves with the increasing focus on climate change, impact investing, and agricultural technology, we have noticed a surge in interest from both local and international investors," stated Priscillah Wakarera, Rhea Co-Founder and CEO, in an interview with TechCabal.
While VC funding for startups has generally been on the decline, the share of funds directed toward climate mitigation and adaptation startups is increasing. Since 2019, the sector has raised more than $3.5 billion.
