Equator, an African venture capital firm, has successfully raised $55 million for its debut fund, aiming to support climate tech startups at one of the most critical stages of their growth—early-stage development.
African Climate Tech Faces Unique Funding Challenges
Unlike their counterparts in developed economies, where government subsidies help green tech companies thrive, climate startups in Africa must navigate a much tougher funding environment. They often rely on development finance institutions (DFIs), foundations, and endowments, leaving them vulnerable to shifts in global financial trends.
With international aid budgets shrinking, DFIs are deploying less capital, creating an even more challenging landscape for African startups. The situation is particularly difficult for climate tech companies, which generally require more funding than traditional tech startups.
Equator Aims to Fill the Climate Finance Gap
Equator believes its $55 million fund can help bridge this financing gap by backing scalable solutions that can attract private investors.
“We are needed more than ever to invest in technology and scalable ventures tackling fundamental climate challenges,” said Nijhad Jamal, managing partner at Equator. “These investments will help reduce dependence on aid and instead bring more global private capital into the region.”
However, while Equator aims to reduce reliance on institutional funding, many of its backers are still DFIs and philanthropic organizations. The fund’s limited partners include British International Investment (BII), Proparco, and the International Finance Corporation (IFC), along with foundations such as the Global Energy Alliance for People and Planet (backed by IKEA, Rockefeller Foundation, and Jeff Bezos’ Earth Fund) and the Shell Foundation.
Investing in Africa’s Next Climate Tech Leaders
Equator plans to allocate funding to 15 to 18 startups, offering $750,000 to $1 million to Seed-stage companies and $2 million to those at Series A.
Beyond capital, the firm will provide hands-on support in unit economics, governance, and regional expansion strategies. It also intends to reserve capital for follow-on investments and later funding rounds while mobilizing its LPs as co-investors, bringing in additional equity, debt, and blended financing.
“In several of our portfolio companies, we’re the only Africa-focused investor on the cap table—that’s the role we see ourselves playing in this ecosystem,” Jamal explained. “Until our most recent investments, we had a 100% success rate in bringing our investors directly into the ventures we backed.”
Driving Sustainable Impact in Africa
Africa contributes less than 3% of global energy-related CO2 emissions but suffers some of the most severe climate consequences. Equator aims to tackle these challenges by investing in innovative ventures that address economic and sustainability issues arising from climate change.
In 2025, funding for tech startups has been remarkable. With this new fund, Equator hopes to transform the climate tech investment landscape in Africa, unlocking fresh capital and scaling sustainable solutions that can make a lasting impact.
