Climate tech VC Satgana closes first fund that targets early-stage startups in Africa, Europe

Climate tech VC Satgana closes first fund that targets early-stage startups in Africa, Europe post thumbnail image

Local weather-tech VC Satgana has reached a closing shut of its first fund, which targets to again as much as 30 early-stage startups in Africa and Europe.

The VC agency reached a closing shut of £8 million ($8.6 million) following commitments from household places of work and high-net-worth people, together with Maurice Lévy of the Publicis Groupe, and Again Market co-founder Thibaud Hug de Larauze.

Satgana founder and Basic Associate, Romain Diaz, instructed TechCrunch that the agency determined to shut the fund early and under the initial target owing to the tough fundraising surroundings, which is worse for first-time fund managers, and to deal with investing and supporting portfolio firms.

“We launched the fund mid-2022, and we’ve got raised in probably the most difficult time since 2015. We’ve got managed to make 13 investments and we all know that with the present capital commitments, we are able to execute upon our technique of investing in 30 firms on this first fund, together with follow-on investments,” stated Diaz.

“This additionally paves the best way for a brand new fund in just a few years, and it’s probably that we launch completely different funds with completely different methods, perhaps one for Europe and one other for Africa – however that may are available later; for now, we’re actually centered on getting this fund proper,” he stated.

The VC agency invests as much as €300,000 ($325,000) in early-stage startups engaged on mitigating and constructing resilience to local weather change, with a bias for mobility, meals and agriculture, power, business, buildings and the round financial system sub-sectors.

Its investees in Africa embody Amini, a startup bridging the environmental knowledge hole in Africa, Mazi Mobility, a Kenyan mobility-as-a-service startup working to develop a community of battery-swapping infrastructure; Kubik, which upcycles plastic and has operations in Ethiopia; and Revivo, a B2B market promoting digital spare elements giving merchandise like telephones a brand new lease of life. In Europe, Satgana has invested in Insurgent Tech, Orbio Earth, Yeasty, Loewi, Arda, Fullsoon and Fermify.

Diaz based the VC agency after a decade of expertise within the enterprise area in a number of African international locations together with Morocco and South Africa, the place he co-founded and ran a enterprise studio.

“I ran it for like 5 years, and about six years in the past I began to essentially have the awakening to the extent of local weather change. That’s the place I made a decision to channel all of the data from my earlier expertise, however on an even bigger scale, whereas focusing solely on investing in local weather tech founders,” he stated.

Diaz launched the VC agency upon shifting to Europe, the place he stated there are satisfactory funding networks, particularly these centered on investments focusing on founders on the pre-seed stage.

Satgana’s deal with Africa was additionally pushed by the very fact that it’s the most weak continent regardless of contributing the least greenhouse fuel emissions. They lately appointed Anil Maguru as partner to drive their Africa technique.

“We’re coming into the continent to pursue inexperienced development goals; so deploying renewable power, low carbon buildings, mobility options and so forth. However we’re additionally eager on investments driving adaptation to local weather change, as a result of sadly, the truth is that local weather change is upon us, and we require options already. That is particularly for folks on the frontline, who are sometimes weak communities, primarily ladies, folks of coloration and low-income communities which are extra uncovered to the consequences of local weather change,” stated Diaz.

“From an influence perspective, it’s necessary for us to spend money on options, which [traditionally] obtain solely a tiny fraction of VC cash,” he stated.

Satgana is among the many new funds which are devoted to the African local weather tech sector. These funds embody Africa People + Planet Fund by Novastar Ventures, Equator’s fund and the Catalyst Fund.

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