African VC Firm Equator Raises $55 Million to Propel African Climate Tech Startups
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Equator, a prominent African venture capital firm, has secured a $55 million fund dedicated to supporting early-stage climate tech startups across the continent. The investment aims to drive sustainable innovation and tackle Africa’s pressing climate challenges.
Strategic Investments for Climate Solutions
Equator plans to deploy this fund across 15 to 18 startups, offering:
🔹 $750,000 to $1 million for Seed-stage companies
🔹 Up to $2 million for Series A startups
Beyond financial backing, Equator will provide strategic support in economics, governance, and regional expansion. Additionally, the firm has set aside capital for follow-on investments and later-stage rounds, collaborating with co-investors to attract equity, debt, and blended financing.
“In several of our portfolio companies, we’re the only Africa-focused investor on the cap table — that’s the role we see ourselves playing in this ecosystem.”
— Nijhad Jamal, Managing Partner, Equator
Bridging the Climate Tech Funding Gap
Africa contributes less than 3% of global CO₂ emissions but suffers some of the harshest climate impacts. Unlike developed regions where governments subsidize green innovations, African climate tech startups often rely on development finance institutions (DFIs), foundations, and endowments—sources that are becoming increasingly strained.
As DFIs scale back funding, climate tech startups struggle to secure capital, given their higher funding needs compared to traditional tech ventures. Equator aims to bridge this gap by mobilizing private capital and reducing reliance on aid-based financing.
“We are needed more than ever to invest in technology and scalable ventures tackling fundamental climate challenges. These investments will help reduce dependence on aid and instead bring more global private capital into the region.”
— Jamal
Key Investors and Portfolio
Equator’s fund is backed by major DFIs, foundations, and endowments, including:
✔ British International Investment (BII)
✔ Proparco
✔ International Finance Corporation (IFC)
✔ Global Energy Alliance for People and Planet (supported by IKEA, Rockefeller, and Jeff Bezos’ Earth Fund)
✔ Shell Foundation
The firm has already invested in high-growth climate startups like Apollo Agriculture (backed by SoftBank) and Odyssey Energy Solutions. With this new fund, Equator aims to accelerate Africa’s green transition by channeling more private investment into climate-focused ventures.
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