VC firm Equator raises Ksh.7.1B to back climate tech start-ups

Equator, the climate tech start-up-focused venture capital (VC) firm, has announced the final close of its first Africa Fund at $55 million (Ksh.7.1 billion).

The Nairobi, London and Colorado-based VC targets technology-enabled, early-stage African ventures in energy, agriculture and mobility sectors.

Nijhad Jamal, managing partner at Equator, said they plan to invest the fund in 15 to 18 start-ups.

The funder will invest between $750,000 and $1 million in seed-stage start-ups and write $2 million cheques for those at Series A.

Jamal told the American industry outlet TechCrunch they also seek to help founders figure out unit economics, governance, and regional expansion, and additionally reserve capital for further investments and later-stage funding rounds.

Equator’s backers include development financial institutions (DFIs) like British International Investment (BII), Proparco, and International Finance Corporation (IFC).

The VC company has also pooled capital from philanthropies like the Global Energy Alliance for People and Planet and the Shell Foundation.

Last October, IFC alone invested $5 million (Ksh.646 million at the time) in Equator’s fund.

The VC achieved a first close of $40 million for the first fund in April 2023.

Equator’s portfolio comprises eight start-ups, including Kenyan solar-powered energy and irrigation systems provider SunCulture, e-mobility venture Roam Motors and Apollo Agriculture, which provides input financing and advisory services to smallholder farmers.