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    You are at:Home»Climate Change»Climate Tech»Equator raises $55 million for fund to support early-stage climate tech startups in Africa

    Equator raises $55 million for fund to support early-stage climate tech startups in Africa

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    By Tapiwa Matthew Mutisi on March 11, 2025 Climate Tech, Entrepreneurship, Funding, Investments, Startups, Venture Capital

    Equator, a venture capital firm focused on Africa, has successfully raised $55 million for its inaugural fund dedicated to supporting early-stage climate tech startups across the continent. This fund aims to address the unique challenges faced by companies working to combat climate issues, particularly those that struggle to secure early-stage funding.

    In many African nations, climate tech startups encounter a more challenging funding landscape compared to their counterparts in developed markets, where government financial support is often readily available. Instead, these African startups primarily rely on development finance institutions (DFIs), philanthropic foundations, and endowments for their funding needs. This dependency renders them particularly vulnerable, especially when global aid and development budgets are reduced.

    Climate tech companies typically require more substantial funding than other types of startups, and a decrease in support from DFIs can significantly heighten the financial pressures they face. Recognizing this gap, Equator believes its fund can play a crucial role by investing in innovative solutions that have the potential to attract additional private investors.

    Nijhad Jamal, Equator’s managing partner, emphasized the importance of their mission, stating;

    We are needed more than ever to support scalable ventures that are solving critical climate problems. Our investments aim to shift the focus from relying on aid to bringing in more private capital into Africa.

    While Equator is committed to reducing reliance on aid, it is important to note that its fund is still supported by several DFIs and philanthropic organizations. Notable backers include British International Investment (BII), Proparco, the International Finance Corporation (IFC), the Shell Foundation, and the Global Energy Alliance for People and Planet, which is supported by IKEA, the Rockefeller Foundation, and Jeff Bezos’ Earth Fund.

    Equator plans to invest in 15 to 18 startups, providing between $750,000 and $1 million to seed-stage companies and up to $2 million for those in Series A funding rounds. Beyond financial support, Equator aims to assist startups in enhancing their business models, governance structures, and regional growth strategies. The firm also intends to support follow-on funding rounds and facilitate co-investments from its backers.

    Jamal noted, “In some of our companies, we are the only Africa-focused investor involved. So far, we’ve had strong success in getting our partners to invest alongside us in these ventures.” Despite contributing less than 3% of global carbon emissions, Africa is disproportionately affected by the adverse impacts of climate change. Through this fund, Equator aspires to empower startups that are addressing both environmental and economic challenges within the region, ultimately fostering sustainable development and resilience against climate-related issues.

    Equator Africa secures $5 million from IFC for African climate tech initiatives

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    Africa Business Climate tech DFIs Entrepreneurships Equator Africa Funding Investments Startups Technology Venture capital
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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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