Equator has Successfully Raised $55 Million to Drive Private Investment in Climate Technology Across Africa

Equator, a venture capital firm based in Africa, has raised $55 million in capital to boost private investment in climate technology in Africa. The investment is significant for a continent that is facing severe climate challenges despite producing a relatively small share of global emissions.

Raising funds for African climate technology startups is generally harder compared to companies in other, more developed economies. They are reliant on development finance institutions (DFIs), foundations, and endowments, whose stability is being reduced by diminishing worldwide aid budgets. Equator attempts to fill the void through supporting the scaling of innovative climate solutions and increasing the inflow of private capital in the region.

Nijhad Jamal, Equator’s managing partner, emphasizes the urgency. “We are needed more than ever to invest in technology and scalable businesses that tackle the fundamental climate challenges,” he says. Equator’s private equity investment in climate technology in Africa is designed to create sustainable solutions that can attract private capital.

The $55 million fund will put money into 15 to 18 startups with capital of $750,000 to $2 million. Equator will also offer critical business support to founders. Its backers are large DFIs and foundations, but Equator wants to rewrite the script by using private capital for scalable businesses that build economic value and sustainability.

Equator’s portfolio companies, such as Roam Electric and Ibisa, show a shift from solely developmental focus to creating economically viable solutions. Climate tech startups of today enjoy a more developed ecosystem to operate within, which allows them to maximize resources and position themselves for acquisitions or exits.

With this $55 million fund, Equator is revolutionizing climate tech financing in Africa. By filling the gaps between early-stage requirements and scalable solutions, Equator is ushering in a greener future for Africa. Equator raised $55 million in capital, which is a testament to its mission of driving private investment in climate technology in Africa.

Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.