Satgana Closes First Climate Tech Venture Capital Fund Focused on Early-Stage Startups in Africa and Europe

Up to €8 million raised for early-stage startups in Africa and Europe

Satgana, a climate tech venture capital firm, has reached a final close of its first fund, with a target of backing up to 30 early-stage startups in Africa and Europe. The VC firm secured commitments from family offices and high-net-worth individuals, including Maurice Lévy of the Publicis Groupe and Thibaud Hug de Larauze, co-founder of Back Market.

Challenging Fundraising Environment

Satgana’s founder and general partner, Romain Diaz, revealed that the firm decided to close the fund early due to the difficult fundraising environment. "We launched the fund mid-2022, and we have raised in the most challenging time since 2015," Diaz said. "We managed to make 13 investments, and we know that with the current capital commitments, we can execute upon our strategy of investing in 30 companies in this first fund, including follow-on investments."

Focusing on Climate Tech

Satgana invests up to €300,000 ($325,000) in early-stage startups working on mitigating and building resilience to climate change. The firm has a bias for mobility, food and agriculture, energy, industry, buildings, and the circular economy subsectors.

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African Climate Startups Set to Gain Ground

As VC funding shifts towards African climate tech startups, Satgana’s investees in Africa include:

Amini: Bridging the environmental data gap in Africa
Mazi Mobility: Developing a network of battery-swapping infrastructure
Kubik: Upcycling plastic with operations in Ethiopia
Revivo: B2B marketplace selling electronic spare parts

In Europe, Satgana has invested in Orbio Earth, Yeasty, Loewi, Arda, Fullsoon, and Fermify.

Satgana’s Focus on Africa

Diaz founded the VC firm after a decade of experience in the venture space in several African countries. He moved to Europe, where he said there are adequate investment networks for climate tech founders. Satgana’s focus on Africa was driven by the fact that it is the most vulnerable continent despite contributing the least amount of greenhouse gas emissions.

Impact-Oriented Investing

From an impact perspective, Diaz emphasized the importance of investing in solutions that traditionally receive only a tiny fraction of VC money. "We are entering the continent to pursue green growth objectives; deploying renewable energy, low carbon buildings, mobility solutions and so on," he said. "But we are also keen on investments driving adaptation to climate change."

New Funds for African Climate Tech

Satgana is among the new funds dedicated to the African climate tech sector, including Africa People + Planet Fund by Novastar Ventures, Africa Renewable Energy Alliance (AREA) Fund, and others.