Equator Announces Final Close of $55M Fund Targeting Critical Start-Up Funding Gap to Power Africa's Climate Revolution

Whats Happening:

Equator, a climate-tech venture capital firm, has announced the final close of its first fund with $55 million in commitments. The fund aims to support Seed and Series A-stage, tech-enabled ventures in energy, agriculture, and mobility sectors across Sub-Saharan Africa. This initiative addresses a critical funding gap for early-stage climate-focused startups in the region.

Key Moves:

• Equator closes $55 million fund for climate-tech ventures in Sub-Saharan Africa

• Fund targets Seed and Series A-stage startups in energy, agriculture, and mobility sectors

• Notable investors include BII, IFC, Proparco, GEAPP, Shell Foundation, and DOEN Participates

By The Numbers:

• Africa accounts for less than 3% of global energy-related CO2 emissions

• Africa received just 0.6% of total global equity funding in 2024

• Less than a third of Africa's funding went to climate-related sectors in 2024

Key Quotes:

• "We have a unique and diverse team of technologists, operators and investors united by our obsession to drive momentum in the campaign for climate action in Sub-Saharan Africa," said Nijhad Jamal, managing partner of Equator.

• "Our deep in-market presence, combined with our global experience and reach, allows us to forecast trends and develop theses that underpin our investments in proven technology and business model innovation to address local market challenges."

Bottom Line:

Equator's $55 million fund represents a significant step towards addressing the critical funding gap for climate-tech startups in Sub-Saharan Africa. By focusing on early-stage ventures in key sectors like energy, agriculture, and mobility, the fund aims to drive an equitable climate transition and foster inclusive economic growth in the region.

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