First Nations House at SXSW 2025 inspired fresh dialogue on indigenous-led solutions
This article was originally published on Climate and Capital Media.
In its pursuit of new technologies and businesses, the climate finance industry has largely overlooked indigenous communities despite their critical role in environmental stewardship. Indigenous groups manage about 25% of the world’s land and 80% of its biodiversity, and hold generational knowledge of proven climate solutions. Yet they receive less than 1% of global climate funding.
Climate justice questions are important. Another is: Why have we overlooked some of the most knowledgeable leaders in resilience? To lead effectively on climate, investment, business, and government leaders must engage with indigenous entrepreneurs and communities more deeply, providing access to financing networks and solutions that align with their community values and empower them to scale impact.
SXSW is designed to bring together diverse, decentralized thinking from around the world and across industries to spark new ideas and solutions, ranging from film and music to XR, AI, climate, fashion, health, and more. It thrives on cross-pollination of ideas. That often happens in the in-between moments, when you’re grabbing a coffee, waiting in line for a show, or enjoying a taco from a food truck — you strike up a conversation with someone completely unexpected and from a completely different world view, and suddenly, new ideas start flowing.
“There are so many differentiated ideas being shared,” a Canadian friend of mine said. “It’s a melting pot of brilliant minds like New York. But hey, you guys don’t talk to strangers in New York. You actually talk to people on the street at SXSW. There is magic in the air here.”
So it was this year at First Nations House at SXSW 2025. We heard a dynamic range of voices, from Maori blockchain entrepreneurs to native venture capitalists from Albuquerque, united by a common goal to drive meaningful investment in indigenous communities. Indigenous innovators, entrepreneurs, and allies from Australia, Canada, the US, Mexico, and New Zealand offered multiple ideas and ignited a powerful call to reframe indigenous knowledge — not as an afterthought, but as the foundation for a new era of impact finance.
Bridge the knowledge gap, and empower indigenous entrepreneurs to scale impact
A crucial first step is equipping indigenous entrepreneurs with the knowledge and networks they need to navigate the business and investment landscapes, steward their natural resources, advocate for sustainable development, and create economic models that align with their values and ways of life.
Nihkhah, a Canadian indigenous-owned company co-founded by Chef Steph Baryluk and sustainability entrepreneur Sid Mehta, was launched during SXSW 2025 with a mission to “transform food systems by honoring and integrating indigenous culinary traditions.” The name Nihkhah comes from the Teetl’it Gwich’in word meaning “gathering” or “together.”
For many indigenous entrepreneurs, the lack of access to a network of peers, whether within or outside of their communities, is the first barrier. To address this challenge, Nihkhah partnered with the Canadian Embassy and the World Food Programme in Rome this month to host discussions showcasing indigenous cuisine. With fried bannock and spruce tip honey butter plant-based smoked cherry meatballs with Tradish jams, for example, they highlighted a tapestry of flavors. The goal? To introduce these indigenous products to local chefs and restaurants, and to integrate indigenous entrepreneurs into the wider culinary scene.
“We want to show that there is a real path to economic stability, employment, and a way to integrate indigenous knowledge and culture in transforming our food system locally and globally,” chef Steph Baryluk said. “Cooking is just the first step of this journey. We want to build capacity within indigenous communities, from inspiring ideation to incubation and acceleration, demonstrating that these ventures are not only possible but thriving. When our communities have access to the right knowledge and opportunities, we can protect our land, preserve our environment, and ensure future generations inherit a stronger, more resilient home.”
When our communities have access to the right knowledge and opportunities, we can protect our land, preserve our environment, and ensure future generations inherit a stronger, more resilient home.”
Indigenous entrepreneurs can not only get help from engaging with the wider community; they can give it. They can share their understanding, for example, of how land and food systems can preserve biodiversity, reduce waste, and mitigate climate change. Indigenous communities often have sustainability built into their cultures and business practices, and opportunities to share those insights can benefit the global community.
Reframing returns: From short-term financial outcomes to intrinsic value
Mainstream financial markets assess value through a narrow lens of near-term financial returns. Even impact investing, which aims to integrate social and environmental metrics, lacks the frameworks needed to fully capture the value of indigenous knowledge. The absence of insights on traditional practices leads to an underestimation of their economic and ecological potential.
Raven Indigenous Capital Partners, an impact-driven venture capital firm with offices in Canada and the US, is working to change this. Founded in 2018, Raven takes a culturally centered approach to investing in indigenous businesses, including climate-focused companies such as Salish Soils and Navajo Power Home. While the technologies of “waste to soil” or off-grid solar are not new, Raven’s model recognizes that financial returns alone don’t tell the whole story, and that there is intrinsic and long-term value in indigenous knowledge, stewardship, and community.
“The vision for Salish Soils extends beyond mainstream concepts of sustainability and is more rooted in the indigenous concept of “All My Relations” — the belief that we are related to all of creation including the soil, plants, and all living things,” explained Paul Lacerte, Co-Founder and Chief Purpose Officer of Raven. “This is where the regenerative spirit of the company flows from and where their business practices are anchored.” Salish Soil diverted 3,152 tons of waste from the landfill in 2024, and also gives back to the Sechelt First Nation community through donations of soil for food production and schools.
“The vision for Salish Soils extends beyond mainstream concepts of sustainability and is more rooted in the indigenous concept of “All My Relations” — the belief that we are related to all of creation including the soil, plants, and all living things.”
As venture capital adapts to longer exit windows, financial models need to evolve to reflect long-term value. Beyond immediate financial returns, investors should integrate stewardship, sustainability, and community resilience into their frameworks. This shift is particularly important as traditional businesses face challenges such as talent retention and labor shortages — issues that indigenous-led enterprises, rooted in community values and intergenerational responsibility, are well-equipped to address. Investing in indigenous enterprises aligns with the goals of “impact” investing: to foster the intrinsic value and lasting social, economic, and environmental wealth.
Building trust: How investors can partner with indigenous leaders in climate finance
Successful investment partnerships require trust. Historically, financial and industrial engagements with indigenous communities have struggled due to misaligned incentives and extractive models. Addressing these challenges isn’t just about ethics — it’s about creating more sustainable and profitable ventures. Investors who fail to build genuine partnerships risk missing out on opportunities, including in renewable energy, which relies heavily on critical minerals.
An MSCI study reported that 97% of nickel, 89% of copper, 79% of lithium, and 68% of cobalt reserves and resources in the US are located within 35 miles of Native American reservations. A University of Queensland study found that 54% of projects extracting clean energy minerals around the world overlap with indigenous lands. Without indigenous leadership in resource management, global markets face increased regulatory risks, supply chain disruptions, and geopolitical uncertainty. The question is no longer whether to invest in indigenous entrepreneurs, but how to structure these investments to create long-term value.
One way to build this trust — and drive better financial outcomes — is through innovative financing structures. The traditional VC equity funding model may be viewed as misaligned with some indigenous business models. Revenue-based financing is one example that offers a more flexible approach. Also called royalty-based financing, founders maintain full control of the company, but they pay investors a regular share of income generated. Revenue-based financing is often seen by founders as less predatory because it is non-dilutive; repayments are tied to a percentage of revenue, offering flexibility based on the business’s cash flow. This model aligns the incentives of both investors and entrepreneurs, focusing on long-term success rather than short-term fixed payments.
Another potential approach is development of carbon credit projects in areas such as regenerative agriculture and forest conservation, which can provide indigenous communities with direct financial benefits while supporting global climate goals. The key to success here lies in adopting a grassroots model that eliminates intermediaries and ensures that the majority of profits flow directly to the community. Too often, carbon markets have been structured in ways that disproportionately benefit brokers and large corporations. By removing the middleman and enabling communities to retain agency over natural assets, investors can create more equitable partnerships that generate sustainable income while enhancing environmental stewardship.
Rethinking climate finance through decentralized innovation
As we continue to reconsider how we approach climate finance, the lessons from indigenous entrepreneurs extend far beyond a single group, offering insights for founders across other regions or communities facing similar structural barriers in finance.
“There is a vast, untapped opportunity for founders who may not fit the conventional mold. By expanding the aperture… we can uncover undervalued founders with unique insights and solutions.”
“Traditional venture capital often centers on ‘product-market fit.’ But there is a vast, untapped opportunity for founders who may not fit the conventional mold,” Ethan Austin of Outside VC explains, “By expanding the aperture of traditional investing and prioritizing ‘founder-market fit,’ we can uncover undervalued founders with unique insights and solutions.” While Outside VC’s Fund I invested mainly in fintech, Fund II will invest as much as 50% in climate solutions, looking for value gaps where a founder’s unique experiences and profile don’t tick all the traditional venture boxes.
Are we turning the tables, or are we questioning why the tables were built that way in the first place? SXSW’s First Nation’s House ignited a valuable conversation, urging us to rethink the systems we’ve long accepted as the norm.
To tackle the climate crisis effectively, indigenous and other frontline communities must lead, or be full partners, rather than continue to be sidelined. By bringing knowledge, networks, and solutions in alignment with indigenous communities’ values, we can unlock transformative, long-term change. It’s time to move beyond performative gestures and partner meaningfully to foster a more resilient, equitable, and economically sustainable future.