Catalyst Fund Secures $30 Million Climate Tech Fund to Back African Startups

Pan African venture capital firm Catalyst Fund has reached the second close of its Catalyst Climate Resilience Fund I, securing US$30 million in total commitments to invest in early stage climate technology startups across Africa. Announced on July 3, 2026, the milestone strengthens the fund’s mission of supporting entrepreneurs developing solutions that help communities and businesses adapt to climate change. The latest fundraising attracted new institutional investors, including the International Finance Corporation (IFC), Financing for Agricultural SMEs in Africa (FASA), Shell Foundation, Trafigura Foundation, Speedinvest, and Blink Impact, alongside existing backers such as FSD Africa and the Cisco Foundation. 

Investing in Climate Resilience

Unlike many climate focused investment funds that primarily target emissions reduction, Catalyst Fund concentrates on climate adaptation, supporting startups that help people and businesses become more resilient to the growing effects of climate change.

The fund invests in companies developing solutions across sectors including:

• Climate smart agriculture

• Food systems

• Clean energy

• Water and sanitation

• Mobility

• Climate

• fintech

• Supply chain resilience

Catalyst Fund plans to support approximately 40 startups, investing from the pre seed to Series A stages while providing extensive venture building support to founders. 

More Than Capital

Catalyst Fund distinguishes itself by combining venture capital with hands on operational support.In addition to financing, portfolio companies receive guidance on product development, hiring, customer acquisition, fundraising strategy, and business operations through the firm’s venture building platform developed with BFA Global.The goal is to help founders achieve product market fit faster while improving their ability to attract follow on investment from global venture capital firms. 

Responding to Africa’s Climate Challenge

Africa contributes only a small share of global greenhouse gas emissions, yet the continent remains among the regions most vulnerable to climate change.Extreme weather events, prolonged droughts, floods, declining agricultural productivity, and disruptions to water and energy systems continue to affect millions of people and businesses each year.Catalyst Fund believes African entrepreneurs are uniquely positioned to develop locally relevant technologies capable of helping communities adapt to these challenges while creating commercially sustainable businesses. 

Strong Investor Confidence

The successful second close reflects renewed investor confidence in Africa’s climate technology sector after a slowdown in venture funding over the past two years.According to Maelis Carraro, Founder and General Partner at Catalyst Fund, climate adaptation is becoming one of the defining investment opportunities of the next decade.The participation of development finance institutions, philanthropic organizations, and private investors demonstrates growing recognition that climate resilience represents both an urgent social need and a significant commercial opportunity. 

Building on an Existing Portfolio

Catalyst Fund has already invested in 28 startups across 10 African markets, supporting businesses addressing climate resilience through innovative technologies.Its portfolio includes companies developing:

• Solar powered cold chain infrastructureAI powered agricultural platformsCircular economy solutionsClimate insurance productsSustainable farming technologies

The new capital will allow the fund to expand its portfolio while continuing to provide long term support to founders tackling some of Africa’s most pressing environmental and economic challenges. 

Looking Ahead

Catalyst Fund expects to complete a final fundraising close later this year as it works toward its broader fundraising target.The firm will continue investing in entrepreneurs building technologies that strengthen climate resilience while supporting sustainable economic growth across Africa. As climate adaptation attracts greater attention from global investors, Catalyst Fund aims to play a leading role in financing the continent’s next generation of climate innovators. 

Why This Matters

Climate technology is rapidly becoming one of Africa’s fastest growing investment sectors. As businesses and communities confront the realities of climate change, demand is increasing for solutions that improve food security, strengthen infrastructure, expand clean energy access, and protect livelihoods.By raising $30 million, Catalyst Fund is helping bridge one of the biggest gaps in Africa’s innovation ecosystem, early-stage financing for founders building practical climate adaptation technologies with the potential to create both economic and social impact.

EIA Takeaway

Catalyst Fund’s latest fundraising demonstrates that climate adaptation is no longer viewed solely as a development challenge, it is increasingly becoming a compelling investment opportunity. By combining venture capital with operational support, the fund is helping African founders transform innovative climate solutions into scalable businesses. For entrepreneurs, the message is clear: startups addressing real environmental challenges are attracting growing interest from global investors and are poised to shape the future of Africa’s economy.