Building a successful startup requires more than a good idea, particularly in Africa’s climate technology sector where early-stage funding and business support remain limited. Catalyst Fund‘s latest fundraising milestone aims to close both gaps by providing entrepreneurs with capital and hands-on venture-building support as they scale climate solutions across the continent.
The pan-African venture fund and venture builder has completed the second close of its Climate Resilience Fund, bringing total commitments to $30 million and moving closer to its final fundraising target. The latest funding strengthens Catalyst Fund’s ability to invest in 40 climate technology ventures across Africa from pre-seed to Series A while providing entrepreneurs with both financing and practical business support.
The second close attracted new investors including the International Finance Corporation (IFC), FASA, Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact, Women Entrepreneurs Finance Initiative (We-Fi), and private investors. They join existing backers such as FSD Africa and Cisco Foundation as Catalyst Fund continues expanding its investor base.
Catalyst Fund Founder and General Partner Maelis Carraro said climate adaptation has become one of Africa’s most important investment opportunities because communities urgently need practical solutions. She said the latest funding allows the firm to continue backing ambitious entrepreneurs while providing the support needed to build sustainable businesses.
Supporting African entrepreneurs beyond funding
Unlike traditional investment funds, Catalyst Fund combines financing with venture-building support through BFA Global, helping founders strengthen business strategy, product development, fundraising, partnerships, hiring and operations.
“Climate adaptation is one of the defining investment themes of the next decade, especially in Africa, where the need is immediate, and the entrepreneurial talent is extraordinary,” Carraro said. “This second close allows us to double down on our mission: backing ambitious founders building practical, scalable solutions for a climate-changed world, and supporting them not just with capital, but with the hands-on venture-building support they need to grow.”
The company-building model sits at the centre of Catalyst Fund’s approach. Rather than acting solely as an investor, the firm works alongside founders from the earliest stages of their journey, helping them navigate critical areas such as strategy, commercial growth, partnerships, follow-on fundraising and operational scale.
IFC Global Director for Disruptive Technologies, Services, and Funds Farid Fezoua said entrepreneurs supported by Catalyst Fund are strengthening livelihoods, expanding access to essential services and creating quality jobs in underserved communities. He added that IFC’s partnership will help these ventures scale sustainably, attract private investors and deliver lasting impact for people and markets.
FASA Investment Director Mamadou Ndao said the organisation’s mission is to reduce the funding gap facing agri-SMEs across Africa. He said FASA selected Catalyst Fund because its investment strategy and venture-building model directly address the challenges facing early-stage climate entrepreneurs. Beyond its $5 million junior equity investment, Ndao said FASA is committed to providing technical assistance to strengthen the fund and support promising agricultural startups.
The latest funding round also includes We-Fi, which will help expand the pipeline of women-led businesses receiving investment support.
Building practical climate solutions
Catalyst Fund’s existing portfolio of 28 companies demonstrates how climate-focused innovation is already delivering solutions across Africa. The fund has backed businesses operating in sectors ranging from agriculture and food systems to recycling, energy and other essential services.
Among them is Kenya’s Keep It Cool, a 2024 Earthshot Prize winner that provides solar-powered cold-chain infrastructure for fisherfolk and poultry farmers. In Tanzania, MazaoHub combines artificial intelligence-powered soil intelligence, agronomy support and digital market access to help smallholder farmers improve productivity and incomes. Egypt-based Bekia operates a technology-enabled circular economy platform that connects households and businesses with collectors, logistics partners, and recyclers, turning waste into economic value.
Shell Foundation Chief Executive Officer Jonathan Berman said climate shocks are already a reality for millions of people across Africa and entrepreneurs building adaptation solutions urgently need access to the right kind of support. He said Catalyst Fund’s approach of backing founders early and working alongside them helps transform proven ideas into scalable businesses addressing critical climate resilience needs.
The second close also broadens the fund’s network of supporters, bringing together development finance institutions, foundations, corporate investors, family offices and high-net-worth individuals, including several investors making their first commitment to Africa.
Trafigura Foundation Chief Executive Officer Dario Soto-Abril said the foundation was proud to make its first impact investment through the fund, adding that the goal is to help unlock more capital for a sector that remains critically underfunded despite its importance to vulnerable communities.
Meanwhile, FSD Africa Director of Early-Stage Finance Juliet Munro said the successful second close validates the view that climate adaptation in Africa is investable from pre-seed to Series A. She said the achievement demonstrates how early catalytic capital can help attract the broader investor base needed to scale climate adaptation investing across the continent.
As climate shocks continue to intensify across Africa, Catalyst Fund is positioning itself behind entrepreneurs building solutions that strengthen resilience while creating commercially viable businesses. The fund’s growing investor support reflects increasing confidence that climate adaptation is not only an impact opportunity but also one of the continent’s most significant emerging investment sectors.
