Catalyst Fund Reaches US$30M Second Close to Back Africa's Climate Startups

Maelis Carraro and Maxime Bayen of Catalyst Fund

Climate adaptation is rapidly emerging as one of Africa's most significant investment opportunities. As climate shocks continue to disrupt agriculture, food security, energy systems, and critical infrastructure, investors are increasingly backing founders building practical technologies that help communities adapt.

Catalyst Fund, the pan-African venture capital fund and venture builder focused on climate resilience, has completed the second close of its debut Climate Resilience Fund, bringing total commitments to US$30 million. The milestone moves the fund closer to its final target and strengthens its mission of supporting Africa's next generation of climate adaptation startups from pre-seed through Series A.

Led by Maelis Carraro, Maxime Bayen, Olúwatóyìn Emmanuel-Olubake, and Amolo Ng'weno, Catalyst Fund plans to invest in 40 African startups, combining venture capital with hands-on company-building support to accelerate commercial growth.

Why Does Catalyst Fund's US$30M Second Close Matter?

The second close represents growing institutional confidence that climate adaptation is becoming a commercially attractive investment theme across Africa.

New investors joining the fund include:

• International Finance Corporation (IFC)
• FASA (Fund for African Agricultural SMEs)
• Shell Foundation
• Trafigura Foundation
• Speedinvest
• Blink Impact
• High-net-worth individuals

These investors join existing backers, including:

• FSD Africa
• Cisco Foundation
• Additional early institutional supporters

The latest close also welcomes the Women Entrepreneurs Finance Initiative (We-Fi), which will help expand Catalyst Fund's pipeline of women-led startups across Africa.

Catalyst Fund expects to complete its final close later in 2026.

"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." — Maelis Carraro, Founder & General Partner, Catalyst Fund

Who Is Backing Catalyst Fund?

Investor	Strategic Role
IFC	Development finance and venture ecosystem support
FASA	US$5 million junior equity investment plus technical assistance
Shell Foundation	Early-stage climate venture support
Trafigura Foundation	Catalytic junior tranche investor
Speedinvest	Venture capital investor
Blink Impact	Impact investment partner
We-Fi	Expands pipeline of women-led startups
FSD Africa & FSDAi	Early institutional backers
Cisco Foundation	First-close investor

The diversity of investors—including development finance institutions, venture capital firms, philanthropic foundations, family offices, and first-time Africa investors—signals broader confidence in Africa's climate innovation ecosystem.

How Is Catalyst Fund Supporting African Climate Startups?

Unlike traditional venture capital firms, Catalyst Fund combines funding with an embedded venture-building model.

Working alongside venture builder BFA Global, the firm helps founders across critical growth areas, including:

• Product development
• Commercial strategy
• Talent acquisition
• Strategic partnerships
• Follow-on fundraising
• Operational scaling
• Market expansion

Rather than acting solely as a financial investor, Catalyst Fund positions itself as an operational partner from the earliest stages of company building.

Which Startups Demonstrate Catalyst Fund's Climate Thesis?

Catalyst Fund's current portfolio includes 28 climate-focused startups, illustrating the breadth of climate adaptation opportunities emerging across Africa.

Startup	Country	Climate Solution
Keep It Cool	Kenya	Solar-powered cold-chain infrastructure for fisheries and poultry supply chains
MazaoHub	Tanzania	AI-powered soil intelligence, agronomy services, and digital market access for smallholder farmers
Bekia	Egypt	Technology-enabled circular economy platform connecting waste producers with recyclers

These businesses address some of Africa's most pressing climate challenges while creating commercially scalable business models.

Why Are Development Finance Institutions Increasing Climate Investments?

The fund's second close reflects growing recognition that climate resilience generates both measurable impact and long-term financial opportunity.

According to Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC, Catalyst Fund-backed companies are:

• Strengthening livelihoods
• Expanding access to essential services
• Creating quality jobs
• Attracting private investment
• Supporting sustainable economic growth

Similarly, FASA committed a US$5 million junior equity investment designed to reduce risk for other investors while providing technical assistance to promising agri-tech startups.

This blended finance approach helps mobilize significantly more private capital into sectors that have historically remained underfunded.

Why Is Climate Adaptation Becoming Africa's Next Venture Capital Opportunity?

Africa faces disproportionate exposure to climate-related risks affecting food production, water availability, logistics, and energy access. At the same time, the continent's startup ecosystem continues to mature, creating opportunities for entrepreneurs to commercialize technologies that improve resilience.

Catalyst Fund argues that these converging trends are creating one of the continent's most compelling venture capital opportunities.

Rather than viewing climate adaptation solely through an impact investing lens, the fund believes scalable businesses solving real economic problems can generate both financial returns and measurable resilience outcomes.

This investment thesis aligns with broader trends across emerging innovation ecosystems—including regional hubs such as Hub71, ADGM, and NEOM—where climate technologies, AI, digital infrastructure, and sustainability are becoming priority investment themes.

Investor Outlook

Catalyst Fund's US$30 million second close demonstrates increasing investor confidence that Africa's climate resilience sector is transitioning from an emerging niche into a scalable venture investment category.

With backing from leading institutions including IFC, FSD Africa, Shell Foundation, Trafigura Foundation, and FASA, the fund aims to finance 40 early-stage companies capable of helping African communities adapt to climate change while building commercially sustainable businesses.

As climate adaptation moves higher on global investment agendas, Catalyst Fund is positioning itself at the intersection of venture capital, company building, and long-term climate resilience across Africa.

 

 

FAQ

1. What is Catalyst Fund?
Catalyst Fund is a pan-African venture capital fund and venture builder investing in climate resilience startups from pre-seed to Series A, combining equity financing with hands-on operational support.

2. How much has Catalyst Fund raised?
Catalyst Fund has reached a US$30 million second close for its Climate Resilience Fund and expects to complete its final close later in 2026.

3. Who are the major investors in Catalyst Fund?
Investors include IFC, FASA, Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact, FSD Africa, Cisco Foundation, We-Fi, and several high-net-worth individuals.

4. How many startups will Catalyst Fund invest in?
Catalyst Fund plans to invest in 40 early-stage climate resilience startups across Africa, focusing on sectors including agriculture, energy, circular economy, and climate adaptation technologies.

5. Why is climate adaptation attracting venture capital in Africa?
Increasing climate risks are driving demand for scalable solutions in food systems, energy, infrastructure, and agriculture. Investors see climate adaptation as both a high-impact sector and a significant long-term venture capital opportunity.