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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/04\/05\/equator-secures-40m-in-commitments-for-fund-targeting-climate-tech-startups-in-africa\/<\/a><\/br> Africa contributes less than 3%<\/a> of the world\u2019s energy-related carbon dioxide emissions but the continent will be one of the most impacted by the adverse effects of climate change. Some explanations for Africa\u2019s vulnerability include poor diffusion of technologies and information relevant to supporting adaptation, usually provided by clean or climate tech companies.<\/p>\n Despite the precise role that technologies such as renewable energy, recycling and green transportation play in improving the world\u2019s environmental footprint, raising venture capital has proved chiefly hard for the companies behind them in years past. However, investor appetite has been enhanced in recent times. In 2021, climate tech startups raised over $60 billion<\/a>, about 14% of VC dollars raised that year; in Africa, clean tech accounted for 15% to 18%<\/a> (about $863 million) of the total funding that venture capitalists poured into the region last year in companies such as Sun King<\/a>, making clean tech second only to fintech.<\/p>\n Development finance institutions (DFIs), including the British International Investment<\/a> (BII), FMO and Norfund, are active investors in the clean tech space, as are clean tech\u2013focused funds such as All On, Ambo Ventures and Catalyst Fund. In the latest development, Equator<\/a>, a climate tech venture capital firm focused on sub-Saharan Africa, has reached an initial close of its first fund with $40 million in commitments. Its limited partners include BII, the Global Energy Alliance for People and Planet (GEAPP), the Shell Foundation and impact investor DOEN Participaties, according to the company\u2019s statement.<\/p>\n Equator backs seed and Series A startups across energy, agriculture and mobility sectors. On a call with TechCrunch, managing partner Nijhad Jamal<\/a> said the firm is interested in these sectors because of numerous untapped market opportunities. He also noted that deploying capital at seed and Series A stages allow Equator to act as a bridge between startups\u2019 earliest checks (at the pre-seed stage) and growth capital, which could come from its limited partners.<\/p>\n \u201cThe challenge for many of those larger funds and international investors is that they tend to come in when things have already been de-risked and proven out. At the seed and Series A stage, there is a shortage of capital and institutional investors supporting companies at that stage of their life cycle and journey,\u201d commented Jamal. \u201cThe hope is that by investing at these stages, we can mobilize capital at Series B and growth equity stages from large regional funds, global climate tech funds, and corporations excited about the sector and region.\u201d<\/p>\n Jamal, before joining Equator, had several stints with asset manager BlackRock and impact investment Acumen Fund, where he managed the firm\u2019s clean tech group. At Moja Capital, a personal fund he founded, Jamal made seed and Series A investments across several sectors, including those central to Equator\u2019s strategy: clean energy, agriculture and mobility. SunCulture<\/a>, a Kenya-based off-grid solar tech for smallholder farmers, was one of Jamal\u2019s investments. Equator made a follow-on investment in SunCulture and other startups backed by the firm\u2019s operators, including Morgan DeFoort<\/a>, partner at Equator and founder of Factor[e] Ventures; Apollo Agriculture<\/a>; Odyssey Energy Solutions; and Roam.<\/p>\n
\nEquator secures $40M in commitments for fund targeting climate tech startups in Africa<\/br>
\n2023-04-05 22:15:44<\/br><\/p>\n