VC firm Satgana closes first fund to support early-stage climate-tech startups in Africa 

The news: 

• Satgana, a venture capital (VC) firm prioritising climate tech solutions, has announced the final close of its first fund, which it aims to use to back up to 30 early-stage climate-tech startups in Africa and Europe.
• The climate-tech reached a final close of €8 million ($8.6 million) with investment from family offices and individuals, including Thibaud Hug de Larauze, co-founder of Back Market, and Maurice Lévy of the Publicis Groupe.
• When the VC launched the fund in 2022, the target was to close at  €30 million ($32.4 million). 

Romain Diaz, Founder and General Partner of Satgana, said the VC firm decided to close the fund early, thereby missing the initial target, because of the challenging fundraising environment, which he noted is worse for first-time fund managers. 

The investment firm, which has already completed 13 investments, stated that the new capital commitments will enable it to effect its strategy of investing in 30 companies in its first fund, including follow-on investments.

Diaz is confident that by focusing on doing everything possible to “get this fund right,” the firm will lay the groundwork for future investments. 

“It’s likely that we launch different funds with different strategies, maybe one for Europe and another for Africa – but that will come in later,” he added. 

The VC firm invests around €300,000 ($325,000) in early-stage climate-tech startups that focus on mitigating and building resilience to climate change, with a preference for mobility, food and agriculture, energy, industry and buildings, and the circular economy sectors.

In Africa, Satgana has invested in Kubik, an Ethiopian-based cleantech startup that transforms plastic waste into affordable, low-carbon building materials; Amini, a startup bridging the environmental data gap in Africa; Mazi Mobility, a Kenyan mobility-as-a-service startup; and Revivo, a B2B marketplace. 

With a decade-long experience in the African venture space across nations like South Africa and Morocco, Diaz co-founded Satgana on September 15, 2020. In 2023, the company appointed Anil Maguru as Partner to drive its Africa strategy.

Other recently established funds set up to support the African climate-tech founders include Novastar Ventures’ Africa People + Planet Fund,  the Catalyst Fund, and Equator’s Fund.

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