Climate-focused Equator clinched its $55 million debut fund, which will invest in low-carbon energy, agriculture and mobility solutions across Africa from seed to Series A. Proparco, the French development financial institution, topped up the fund, which has been in the market since 2023.
The International Finance Corp. invested $5 million last year, backed by a $1.5 million guarantee from the $30 million Korea Green Resilient and Innovative Development Program or K-GRID. Equator’s sister firm Factor[e] Ventures, provides up to $750,000 for pre-seed and seed stage ventures in food, water and agriculture, energy and mobility.
With offices in Nairobi, Lagos and London, as well as Colorado, Equator collaborates with Factor E on deal sourcing, due diligence and post-investment support.
De-risking startups
Equator reached a $40 million first close for the fund in 2023 with support from British International Investment, Global Energy Alliance for People and Planet, impact investor DOEN Participaties and Shell Foundation. The fund has since made six investments and is looking to make a dozen more with checks between $500,000 to $5 million.
It has led investments in the e-bus and e-bike maker Roam, soil organic carbon measurement company Downforce Technologies, climate risk parametric insurer Ibisa, and a merger between UK’s SteamaCo and Nigeria’s Shyft Power to digitize Africa’s power grids. Equator’s Nijhad Jamal wants the fund to “de-risk investment in these startups and pave the way for larger funds to invest tens of millions of dollars at growth stages.”
