Equator Secures $55 Million to Support Early-Stage Climate Startups in Sub-Saharan Africa

Equator, a climate-focused venture capital firm, has closed its debut fund at $55 million, aiming to back early-stage startups in Sub-Saharan Africa that are addressing environmental challenges in key sectors such as energy, agriculture, and mobility. The fund targets companies at the Seed and Series A stages, with a focus on scalable and impactful business models that address local market needs while contributing to broader climate goals.

The fund is supported by a consortium of institutional investors, including British International Investment (BII), International Finance Corporation (IFC), Proparco, Global Energy Alliance for People and Planet (GEAPP), Shell Foundation, and DOEN Participates. Despite the region's minimal contribution to global carbon emissions—less than 3%—Africa remains among the most vulnerable to climate-related risks. However, funding for climate startups in the region continues to be limited. In 2024, only 0.6% of global equity funding was directed to African startups, and less than one-third of that amount went to climate-tech companies. Within this subset, only 10% reached early-stage ventures.

Founded with the goal of addressing this capital gap, Equator provides both financial backing and operational support to entrepreneurs building technology-driven solutions for climate resilience. With teams based in Nairobi, Lagos, London, and Colorado, the firm is structured to offer hands-on involvement and regional insight. Managing Partner Nijhad Jamal emphasized the team’s mission by stating, “We have a unique and diverse team of technologists, operators and investors united by our obsession to drive momentum in the campaign for climate action in Sub-Saharan Africa.”

Since its initial closing, the fund has invested in several startups aligned with its mission. These include Downforce Technologies, which offers a digital platform for measuring soil carbon; Ibisa, a company providing parametric insurance to support smallholder farmers and businesses against climate impacts; Leta, a logistics technology firm focused on improving operational efficiency and reducing emissions; and both SteamaCo and Shyft Power Solutions, which specialize in smart metering and AI-based energy management systems.

The involvement of leading institutions has added momentum to the fund’s deployment. IFC, for instance, made its first investment in a venture capital fund solely dedicated to climate innovation through this initiative. Proparco and BII have also extended follow-on investments and technical assistance to portfolio companies, reinforcing their commitment to building climate resilience in the region.

Looking ahead, Equator aims to continue channeling capital into innovative startups that can make a meaningful environmental and economic impact. By leveraging regional expertise and a global investor network, the firm plans to address systemic climate challenges while supporting the growth of Africa’s emerging climate-tech ecosystem.