This fund is targeting up to $100 million for African climate tech startups
Despite the global decline in venture capital funding, Africa's climate tech sector is heating up rapidly. Last year, climate tech startups on the continent raised more than $860 million in equity funding, primarily focused on clean energy technologies. This represents a remarkable 3.5 times increase from 2021.
Despite the global decline in venture capital funding, Africa's climate tech sector is heating up rapidly. Last year, climate tech startups on the continent raised more than $860 million in equity funding, primarily focused on clean energy technologies. This represents a remarkable 3.5 times increase from 2021.
Interestingly, climate tech has become Africa's second-most funded sector after fintech and it seems like this won't be changing anytime soon.
E3 Capital, an early-stage venture capital firm formerly known as Energy Access Ventures, and Lion's Head Global Partners, an emerging markets-focused investment bank have just announced the first close of their E3 Low Carbon Economy Fund for Africa (E3LCEF) at $48.1 million.
The fund aims to reach a total of $100 million and joins the growing number of investment vehicles supporting startups in Africa's climate tech sector. The fund will provide initial and follow-on funding to startups focused on low-carbon economies, such as solar providers and electric vehicle (EV) companies.
E3 Capital partner Vladimir Dugin stated that the new fund will invest in businesses across sub-Saharan Africa, with typical investments ranging from $500,000 to $3 million.
Other notable climate-focused funds in Africa include Novastar's $200 million Africa People + Planet Fund, Equator's climate tech venture capital fund, Satgana, AfricaGoGreen Fund (AAGF), and the Energy Entrepreneurs Growth Fund (EEGF). Additionally, Oxfam Novib and Goodwell have launched a new fund to provide venture debt to startups in the climate tech sector.
