Satgana reportedly closes its very first fund to help support early-stage climate-tech startups in Africa.
The Venture Capital firm that prioritizes climate tech solutions, has now announced the final close its very first fund, which in case you don’t know aims to use to backup to 30 early-stage climate-tech startups in both Africa and Europe.
Satgana Closes Its First Fund
The climate-tech venture capital firm has successfully wrapped up its funding round, securing a total of €8 million ($8.6 million). This funding comes from various sources, including family offices and individuals such as Thibaud Hug de Larauze, co-founder of Back Market, and Maurice Lévy from the Publicis Groupe.
Originally, when the VC launched its fund back in 2022, the goal was to reach €30 million ($32.4 million). However, due to the challenging landscape of fundraising, particularly for first-time fund managers, they decided to close the fund early, falling short of the initial target.
Despite not hitting the original mark, Romain Diaz, the Founder and General Partner of Satgana, remains optimistic. He highlighted that the firm’s focus on closing the fund early was a strategic decision, given the difficulties faced in raising capital.
What the Company Plans for the Funds
With 13 investments already under their belt, the VC firm aims to utilize the newly acquired capital to execute its plan of investing in a total of 30 companies for its first fund, which includes both initial investments and follow-on investments.
Diaz expressed confidence in the firm’s approach, emphasizing their commitment to getting the fund right. By prioritizing this objective, they aim to set a strong foundation for future investments and ensure the success of their portfolio companies.
“It’s likely that we launch different funds with different strategies, maybe one for Europe and another for Africa – but that will come in later,” he reportedly added.
The Venture Capital Firm Specializes In Backing Early-Stage Climate-Tech Startups
The venture capital firm specializes in backing early-stage climate-tech startups, typically investing approximately €300,000 ($325,000) each. These startups focus on developing solutions to mitigate the impacts of climate change and enhance resilience against its effects.
The firm shows a particular interest in startups operating in sectors such as mobility, food and agriculture, energy, industry, and buildings, as well as the circular economy.
Satgana Investments in Several Promising Startups
In Africa, Satgana has made significant investments in several promising startups. One notable example is Kubik, a cleantech startup based in Ethiopia, which specializes in converting plastic waste into affordable, low-carbon building materials.
Additionally, they’ve supported Amini, a startup dedicated to addressing the environmental data gap in Africa, as well as Mazi Mobility, a Kenyan startup offering mobility solutions as a service, and Revivo, a B2B marketplace.
Romain Diaz, with a wealth of experience spanning over a decade in the African venture space, co-founded Satgana on September 15, 2020. Recognizing the immense potential in Africa’s climate-tech sector, the company appointed Anil Maguru as a Partner in 2023 to spearhead its Africa-focused strategy.
Other Established Funds to Support African Climate-Tech Founders
It’s worth noting that Satgana is not alone in its efforts to support African climate-tech founders. Other recently established funds, such as Novastar Ventures’ Africa People + Planet Fund, the Catalyst Fund, and Equator’s Fund, are also dedicated to providing financial backing and resources to drive innovation and sustainability across the continent.
These initiatives collectively aim to foster a vibrant ecosystem for climate-tech entrepreneurship in Africa, addressing critical environmental challenges while unlocking economic opportunities for local communities.
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