Rishika Madan Is Advancing Climate Tech Whilst Empowering Women In Venture Capital

India is teeming with fresh ideas in disruptive innovation, making itself a hub for solutions that matter. This dynamism is especially evident in the climate action and sustainability landscape, where ventures are leading efforts to tackle pressing environmental challenges. To navigate these evolving ecosystems, venture capitalists with a deep understanding of climate technology and sustainable business models are becoming increasingly important. 

SheThePeople in collaboration with Women Climate Collective brings the story of Rishika Madan, an investment professional at VenturEast, who specialises in innovations focused on climate action. She has identified and assessed over 200 early-stage climate-tech startups in the energy, electric vehicle (EV), and carbon sectors.

In this interview, Madan shares her insights on India's climate tech startup space and reflects on her journey as a woman in the male-dominated Venture Capital community.

Excerpt From The Interview

Please tell us about your background and how you forayed into the investments professionally.

I completed a Bachelor's degree in Economics from a premier institution in India because I wanted to build a big-picture perspective of how business, financial systems & public policy work. To gain technical depth and a well-rounded skill set, I chose a Master's in Statistics at the National University of Singapore (NUS), to couple up my big-picture thinking with data-driven problem-solving. 

As the Vice President of the Graduate Students’ Society at NUS, I raised $1M as part of Mission India for COVID relief in India. I am the founder of the 200-member+ GSS Consulting Group and the Alumni Mentorship Programme. As an army kid, I have also had the opportunity to live in 14 cities across India.

The diverse ecosystem at NUS exposed me to a network of startups and innovators where I got the opportunity to work closely on start-ups in an operational capacity & as an external consultant. Consequently, I have developed a keen interest in business, innovation and technology.

I believe there is something rather elegant in being able to look at complex, large, and real-life scenarios, abstract them into solvable problem statements and provide actionable data-driven insights when and where required. 

I explored such interests by foraying into VC as I find venture capital essentially to be that space which aligns very strongly with my interest in business, innovation, and tech, as well as my personal philosophy of doing great work that generates value. I have worked in the investment teams of VenturEast, Chiratae Ventures & Tomorrow Capital, discovering and meeting interesting businesses & founders.

What drew you to focus on investments in climate action? How crucial is the role of investments in the eco-innovation space?

My core philosophy is to do work that builds capability/learning, guided by the question, ‘What will I learn today to help me improve tomorrow?’ I follow the philosophy of ‘Impact Beyond Myself’ – doing significant work that has a measurable impact beyond myself, and does it matter. I believe in doing work that builds capability: what I learn today should help me be better tomorrow and have an impact beyond myself. 

VCs are essentially in the business of predicting the future, identifying what will become important tomorrow, and enabling it to be realized by investing in it today. The climate issue is existential, and global warming concerns us all. Climate is the biggest problem that needs innovation and support through capital, partnerships, mentorship, and community to scale meaningfully. An entire ecosystem is needed to support this, which VCs can help build. That is why I want to work at the intersection of investing and climate action.

Can you share some insights on how advanced the climate tech startup space in India is right now? Where do we lie in comparison with other (specifically First World) countries in the innovations for climate action domain?

The climate tech sector in India is flourishing, with over 1,200 startups focused on clean energy, circular economy, and sustainable agriculture. India's COP26 commitments, which include reaching net-zero carbon emissions by 2070 and increasing non-fossil energy capacity to 500 GW by 2030, have led to higher investment in the climate tech ecosystem. According to a 2023 report, climate tech startups in India raised around $2.1 billion in funding between 2021-2023, reflecting a strong growth trajectory. 

However, India is still in the developing stages of climate innovation compared to developed countries like the US, Germany, and the UK, which have established ecosystems. Globally, First World nations account for around 60% of climate tech investment due to their mature technology infrastructure, large capital reserves, and supportive government policies. 

For example, India has made remarkable progress in solar and wind energy, with startups like ReNew Power leading the way. We have the world’s fourth-largest renewable energy capacity, but energy storage solutions and smart grid technologies still lag behind First World countries like the US, which is leading in battery innovation and grid resilience technologies. Similarly, while India is a promising EV market, First World nations like Norway, the Netherlands, and Germany are far ahead in EV penetration, supported by extensive charging infrastructure and innovation in hydrogen fuel cells.

The VC community has been known to be notoriously male-dominated. Have you ever experienced a gender gap yourself? Have you faced any challenges stemming from gender, age, or other social barriers?

When I forayed into the Indian VC space, I was surprised to see the lack of women's representation. I quickly learned that this was a trend across the industry at large- across board rooms and senior leadership teams, as only 2.4% of women are founding partners with control over the firm’s capital. This systematic lack of women's representation in cheque-writing roles across early, mid, and growth stages/PE funds then trickles down to a lack of funding for women's startups. IFC data shows that only 11% of seed funding in emerging markets goes to women founders - underscoring the stark gender gap.

There is a need for a fundamental reimagining of the industry’s composition and culture. I believe that the time for change is here. We must build a stronger and more inclusive entrepreneurial landscape, which has made me prioritize women’s inclusion and empowerment in work and community.

From your observations, what are women’s experiences like in innovation, STEM, and climate action fields? Does ‘growth’ look different for women in these professions?

Sheryl Sandberg’s book Lean In: Women, Work, and the Will to Lead highlights the disconnect between women’s academic achievements and their underrepresentation in leadership, particularly in fields like innovation, STEM, and climate action. While women excel academically, earning a significant share of degrees, their progress often stalls in the workplace due to societal conditioning that discourages risk-taking and self-advocacy—traits critical for career advancement. Sandberg points out that behaviours rewarded in school, such as compliance and waiting to be called upon, do not translate well into the professional world, where leadership requires assertiveness and the ability to seize opportunities.

This is especially true in male-dominated fields like STEM and climate innovation, where women may hesitate to speak up or push for leadership roles. As a result, even though the talent pipeline is full of capable women at entry-level positions, it is predominantly men by the time that pipeline fills leadership roles. If we want a world with greater equality, we must acknowledge that women are less likely to raise their hands. Institutions and individuals need to notice and correct this behaviour by encouraging, promoting, and championing more women. Women have to learn to keep their hands raised up because when they lower them, even managers with the best intentions might not notice.

We know that women's perspectives contribute to a more diverse and holistic approach to leadership. Can you describe how your career experiences as a woman have shaped your work in the investment profession and climate action innovation?

As a woman in the investment profession and climate action innovation, my career experiences have uniquely shaped my approach to leadership and decision-making. Increased diversity in investment teams has been proven to enhance venture capital fund performance, as shown by a Harvard study, which found that a 10% increase in female partners led to a 1.5% rise in annual returns and 9.7% more profitable exits.

The reason for this lies in the issue of homogeneity, which often results in confirmation bias—a situation where team members agree without challenging each other because they share similar backgrounds and perspectives. In contrast, diversity fosters diverse thought, allowing teams to assess investments with a broader lens incorporating varying viewpoints on technologies, businesses, and ideas.

My presence as one of the few women in investment discussions brings this diversity of thought, providing a fresh, often underrepresented perspective, especially in sectors like climate innovation, where solutions must account for both financial and long-term environmental impacts. 

What has the impact of initiatives like Women Climate Collective been in your journey?

WCC has enabled me to better my knowledge & understanding of the climate landscape, learn from leaders and experts in the space, exchange perspectives & build meaningful relationships with women working across the climate ecosystem. We all come from very diverse fields, with someone working in investing like me, someone working in rural climate solutions, and someone else solving urban-focused climate problems.

This is great because it allows us to leverage our different backgrounds to develop a better understanding of issues that exist and enable holistic and effective solutions that address specific climate challenges. 

Women Climate Collective is a platform dedicated to developing leadership and empowering women in the climate and gender equity spaces across India.