Catalyst Fund adds $30M for climate startups
Catalyst Fund has completed the second close of its latest fund, taking total commitments to $30 million as it works towards a final target of $40 million. The venture capital firm invests in early stage African startups developing technologies that help businesses and communities deal with climate related challenges. Once fundraising is complete, the fund
Catalyst Fund adds $30M for climate startups
Catalyst Fund has completed the second close of its latest fund, taking total commitments to $30 million as it works towards a final target of $40 million. The venture capital firm invests in early stage African startups developing technologies that help businesses and communities deal with climate related challenges. Once fundraising is complete, the fund expects to back around 40 startups across the continent.
Climate tech investment starts to recover
The second close comes as funding for African climate tech startups begins to recover. According to TechCabal Insights, investment in the sector fell to $754 million in 2024 before rising to $1.1 billion by November 2025. Catalyst Fund said the latest funding will allow it to invest in more startups while continuing to work with founders after making an investment. The second close attracted several new investors, including the International Finance Corporation, Financing for Agri SMEs in Africa (FASA), Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact and Women Entrepreneurs Finance Initiative. They join existing backers, including FSD Africa and the Cisco Foundation. Catalyst Fund said We-Fi’s investment will help increase funding for women led startups.
Portfolio continues to grow
Catalyst Fund held the first close of the fund in 2023, raising $9 million. Since then, it has invested in 28 startups operating in 10 African countries. It has also made follow on investments in nine portfolio companies. Its portfolio includes MazaoHub, Bekia and Keep IT Cool. The firm typically invests about $200,000 in pre seed startups before deciding whether to invest in later funding rounds. Nigeria, Kenya, Egypt and Tanzania account for most of its investments. Catalyst Fund also provides business support through BFA Global. Founders receive advice on product development, recruitment, fundraising and commercial planning. The firm expects to complete fundraising before the end of the year while continuing to invest in climate technology startups across Africa.
