'The 2-2-2 rule': How this climate tech angel investor backs founders

Self-professed ‘recovering entrepreneur’ Carmel Rafaeli has made 42 climate tech investments in under four years, almost all of them targeting women founders in climate tech. She’s also taken several LP positions in impact funds, including Carbon Equity.

Over time, she’s developed a rather unique approach to taking small strategic stakes in early-stage ventures. She calls it the 2-2-2 rule.

“Two weeks, two meetings, and a standard cheque of £2,000,” Rafaeli tells Impact Loop over a video call.

Rafaeli, who has invested in startups such as Shellworks and Biographica, says she likes to place lots of small bets on specific founding teams - to diversify her portfolio but also act as a “catalysing investor” for larger investors to follow.

'You need to remember you’re not a professional VC firm'

It’s not a new tactic, but the investor does like to think she’s made the whole process a lot more streamlined, not just for herself but for the founders too.

She is pretty honest about her frustrations with how angels typically operate.

"If you're putting five thousand pounds into a founder, you can't expect them to sit with you for ten hours," she says.

Rafaeli criticises angels who run months-long due diligence processes before writing small cheques.

"When you wear the angel hat you need to remember you’re not a professional VC firm… you just need to approach the investment differently,” she says.

Rafaeli, who is based in London, takes that hands-off approach a step further.

"Angels mostly should come from the mentality that you're writing off everything, right? You're hoping for returns but you're writing off everything... you have to know you can lose the money,” she says.

That almost philanthropic mindset can be found in her latest venture: The Table, a “matchmaking” platform connecting female-founding teams in climate tech with suitable investors.

‘Forgivable loans’ for climate tech

Rafaeli launched The Table in 2024 with prominent impact investor Julie Blane. The non-profit organisation has since gathered over 400 members, spanning syndicates, venture funds, family offices, and corporate VCs. These members share early-stage deals (pre-seed to Series B) where a female founder holds equitable equity and the business has a direct positive climate outcome.

'Hopefully it will create a cycle of really successful companies'

The Table is currently raising a £300m evergreen philanthropic fund structured as a Donor Advised Fund (DAF), says Rafaeli. When a community investor brings a qualified deal forward that they have already committed capital to, The Table matches their ticket. They will match up to £500,000 for pre-seed rounds, £750,000 for seed rounds, and £1m for Series A.

The capital provided by The Table is not equity or traditional debt, but rather a "forgivable revenue-based loan" that sits as a long-term liability on the startup's balance sheet, Rafaeli says.

Founders are given a generous grace period to de-risk their innovation. "The companies have three years of building without repayment,” she explains. “After which they'll repay only 4% of their revenue and that's only if it doesn't harm their continued operations.”

The ultimate point of The Table's fund is to correct what Rafaeli views as a massive "market failure" in the venture capital ecosystem regarding the funding of women and climate innovation.

“Hopefully it will create this cycle of really successful companies getting the capital that they deserve,” she says.

Back on the angel side, Rafaeli is aiming for 10 to 15 new deals this year alongside two or three fresh LP positions. “I really love this part of my work,” she says.