Climate-tech venture capital firm Satgana has officially closed its first fund, securing a total of £8 million ($8.6 million) from family offices and high-net-worth individuals. This initial fund is focused on supporting early-stage startups in Africa and Europe, with a target of investing in up to 30 companies.
The final close of the fund included contributions from notable investors such as Maurice Lévy from the Publicis Groupe and Thibaud Hug de Larauze, co-founder of Back Market.
In an interview with TechCrunch, Satgana founder and General Partner Romain Diaz explained that the decision to close the fund early and below the initial target was due to a challenging fundraising environment, particularly for first-time fund managers. The firm also wanted to shift its focus to investing in and supporting its portfolio companies.
“We launched the fund in mid-2020 and raised the capital during the most difficult period since 2015. However, we have already made 13 investments and are confident that we can successfully execute our strategy of backing 30 companies with this fund, including follow-on investments,” said Diaz.
He also mentioned the possibility of launching new funds in the future, potentially with different investment strategies for Europe and Africa. But for now, the firm is solely focused on making their first fund a success.
Satgana invests up to €300,000 ($325,000) in early-stage startups that are working on solutions to mitigate and build resilience against climate change. The firm has a specific interest in startups in the mobility, food and agriculture, energy, industry, buildings, and circular economy sectors.
Their portfolio in Africa includes Amini, a startup addressing the environmental data gap, Kenyan mobility-as-a-service company Mazi Mobility, upcycling plastic startup Kubik with operations in Ethiopia, and B2B marketplace Revivo, which gives electronic products a new lease of life by selling spare parts. In Europe, Satgana has invested in companies such as Rebel Tech, Orbio Earth, Yeasty, Loewi, Arda, Fullsoon, and Fermify.
Diaz founded Satgana after gaining a decade of experience in venture capital in various African countries, including Morocco and South Africa. He also co-founded and managed a venture studio for five years before shifting his focus to climate tech.
“About six years ago, I had a growing awareness of the severity of climate change. That’s when I decided to use my knowledge and experience in a bigger way and solely focus on investing in climate tech founders,” he explained.
Diaz chose to base the VC firm in Europe due to the existing investment networks, especially those focused on pre-seed stage startups. They also recently appointed a new partner, Anil Maguru, to lead their Africa strategy.
“Our goal is to support green growth initiatives on the continent, which includes deploying renewable energy, creating low-carbon buildings, and implementing mobility solutions. We are also interested in investing in solutions that help communities adapt to climate change, as these are the people who are most affected by it – particularly vulnerable communities, women, people of color, and low-income communities,” said Diaz.
“It’s crucial for us to invest in solutions that typically receive a tiny fraction of VC funding,” he added.
Satgana is just one of the new funds dedicated to the climate tech sector in Africa. Other notable funds include Africa People + Planet by Novastar Ventures, Equator’s fund, and the Catalyst Fund.
