Equator, a venture capital (VC) firm focused on climate tech start-ups, has successfully closed its first Africa Fund at $55 million (Ksh.7.1 billion). The Nairobi, London, and Colorado-based VC firm aims to support early-stage African ventures operating in energy, agriculture, and mobility sectors.
Nijhad Jamal, managing partner at Equator, announced that the fund will be directed towards investing in 15 to 18 start-ups. The firm plans to invest between $750,000 and $1 million in seed-stage start-ups and provide $2 million in Series A funding rounds.
Jamal, in an interview with TechCrunch, highlighted that beyond financing, Equator seeks to assist founders in strengthening unit economics, governance structures, and regional expansion strategies. The VC firm also intends to reserve capital for follow-on investments and later-stage funding rounds to ensure sustained growth for its portfolio companies.
Equator’s investors include prominent development financial institutions (DFIs) such as British International Investment (BII), Proparco, and the International Finance Corporation (IFC). The fund also draws support from philanthropic organizations like the Global Energy Alliance for People and Planet and the Shell Foundation.
IFC notably contributed $5 million (Ksh.646 million at the time) to Equator’s fund last October, reinforcing its commitment to fostering sustainable and impactful African businesses. The VC firm achieved its first close at $40 million in April 2023 before reaching its final close at $55 million.
Equator’s current portfolio includes eight start-ups, among them Kenyan solar-powered energy and irrigation systems provider SunCulture, e-mobility company Roam Motors, and Apollo Agriculture, which offers input financing and advisory services to smallholder farmers. These companies exemplify the kind of impact-driven businesses that Equator seeks to support.
The closing of Equator’s Africa Fund marks a significant milestone in climate-focused investments on the continent. By providing financial backing and strategic support to early-stage climate tech ventures, the firm aims to accelerate the transition to sustainable energy, enhance agricultural productivity, and promote cleaner mobility solutions across Africa.
With a robust investment plan and strong institutional backing, Equator is poised to make a substantial impact in Africa’s climate tech sector, fostering innovation and economic growth while addressing pressing environmental challenges.
