Catalyst Fund has raised $8.6 million to invest in African entrepreneurs with a climate-related focus.
According to a report, The Catalyst Fund by BFA Global has successfully achieved its first close, securing $8.6 million of its $40 million target earmarked for investment in African climate startups. This funding round received support from notable backers, including FSD Africa Investments (FSDAi), Cisco Foundation, USAID Prosper Africa, and tech investor Andrew Bredenkamp.
While The Catalyst Fund's primary mission is to foster the growth of climate-focused startups across Africa, it's also ready to invest in diverse sectors such as agtech, insurtech, climate fintech, fishery management, food systems, cold chain logistics, waste management, and water resource management. This pan-African fund places particular emphasis on supporting pre-seed startups and has already extended its support to ten startups from six different countries, including Egypt, Senegal, and Morocco.
In its forward-looking strategy, The Catalyst Fund intends to make a $200,000 first investment in pre-seed firms and a total of 40 long-term investments in 20 startups this year. The fund additionally offers pre-seed firms technical assistance. Since its founding in 2016, it has collaborated with groups like the UK Foreign Commonwealth and Development Office and the Bill & Melinda Gates Foundation.
Carraro highlighted that this shift allows them to provide sustained support to founders, addressing their long-term capital and support needs. The Catalyst Fund's focus on climate change aligns with the growing trend of capital pools in Africa dedicated to environmental challenges, covering a wide spectrum of economic sectors to adapt to climate change impacts.
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