Editor’s note: African-Startups is a sister publication of EU-Startups, bringing trusted coverage of startups, venture capital, and innovation across Africa.
Catalyst Fund has announced the second close of its pan-African climate resilience fund, bringing total commitments to $30 million as it moves closer to its target fund size. The venture capital firm said the fresh capital will enable it to continue backing early-stage ClimateTech startups across Africa while advancing its goal of investing in 40 ventures from pre-Seed to Series A before reaching a final close later this year.
Led by partners Maelis Carraro, Maxime Bayen, Olúwatóyìn Emmanuel-Olubake and Amolo Ng’weno, Catalyst Fund invests in founders building technologies that help African communities adapt to climate change. The second close attracted a mix of development finance institutions, foundations, venture investors and private investors.
“Climate adaptation is one of the defining investment themes of the next decade, especially in Africa, where the need is immediate, and the entrepreneurial talent is extraordinary. This second close allows us to double down on our mission: backing ambitious founders building practical, scalable solutions for a climate-changed world, and supporting them not just with capital, but with the hands-on venture-building support they need to grow,” said Maelis Carraro, founder and General Partner of Catalyst Fund.
According to the firm, the new backers include the International Finance Corporation (IFC), FASA Fund by Investisseurs & Partenaires (I&P), Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact, the Women Entrepreneurs Finance Initiative (We-Fi), and a group of high-net-worth individuals.
They join existing investors including FSD Africa, Cisco Foundation, and other supporters that participated in the fund’s first close. We-Fi will also help expand the fund’s pipeline of women-led startups.
“Across Africa, entrepreneurs supported through Catalyst Fund are strengthening livelihoods, expanding access to essential services, and creating quality jobs in underserved communities. Through IFC’s partnership with Catalyst Fund, we are mobilising capital and expertise to help these early‑stage ventures scale sustainably, attract private investors, and deliver lasting impact for people and markets,” said Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds, International Finance Corporation (IFC).
The fund will support startups developing solutions across climate FinTech, agriculture and food systems, as well as climate-smart essential services such as water, energy and mobility. It has already backed 28 startups across 10 African markets and plans to expand that portfolio to 40 companies.
“FASA’s mission is to reduce the funding gap faced by agri-SMEs in Africa by mobilizing catalytic capital, empowering investment managers, and fostering a supportive ecosystem. We chose Catalyst Fund because their investment strategy and their embedded venture-building model perfectly address the critical gaps faced by early-stage climate entrepreneurs. Beyond our $5 million junior equity investment to derisk the fund and unlock additional funding from co-investors, we are committed to providing targeted technical assistance to strengthen the fund’s capacities and support its most promising agri-startups,” said Mamadou Ndao, Investment Director, FASA.
The firm’s investment model combines equity financing with operational support delivered through venture builder BFA Global. Rather than acting solely as a financial investor, Catalyst Fund works closely with founders on product development, hiring, commercial traction, partnerships, fundraising and scaling their businesses.
Jonathan Berman, CEO of Shell Foundation, said, “Climate shocks are already a reality for millions of people across Africa and founders building adaptation solutions urgently need access to the right kind of early support. Catalyst Fund backs entrepreneurs early and works alongside them to turn proven ideas into scalable businesses. We’re pleased to support this second close and help channel more capital to founders addressing critical climate resilience needs.”
