Satgana, a venture capital (VC) firm focused on climate tech solutions, has closed its first fund.
The fund, targeting £8 million ($8.6 million), will be used to support up to 30 early-stage startups across Africa and Europe.
The final closing amount is a strategic decision by Satgana, considering the current fundraising situation, which has been particularly challenging for first-time fund managers.
Romain Diaz, Satgana’s founder and General Partner, explained, “We launched the fund in mid-2022, navigating the most difficult fundraising environment since 2015.”
Despite the challenges, Satgana has already made 13 investments and remains confident in its ability to fulfill its strategy of backing 30 companies in this first fund, including follow-on investments.
“This successful closing also paves the way for a future fund with potentially different strategies,” said Diaz.
He envisions potentially launching separate funds for Europe and Africa, but emphasizes the current focus on maximizing the impact of the first fund.
Satgana invests in startups working on climate change mitigation and resilience solutions, with a particular focus on mobility, food and agriculture, energy, industry, buildings, and the circular economy. The firm typically invests up to €300,000 ($325,000) in early-stage ventures.
The VC firm has a diverse portfolio that includes African startups like Amini (environmental data solutions), Mazi Mobility (battery-swapping electric mobility), Kubik (plastic upcycling), and Revivo (B2B marketplace for electronic spare parts).
In Europe, Satgana has invested in companies like Rebel Tech, Orbio Earth, Yeasty, Loewi, Arda, Fullsoon, and Fermify.
Diaz’s decade-long experience in the African venture capital space, coupled with a growing awareness of climate change, fueled his decision to launch Satgana.
He explains, “I wanted to leverage my experience on a larger scale, focusing solely on climate tech founders.” Europe’s established investment networks, particularly those catering to pre-seed ventures, played a role in Diaz’s decision to base the firm there.
Africa’s vulnerability to climate change despite minimal greenhouse gas emissions is a key driver of Satgana’s focus on the continent. The firm recently appointed Anil Maguru as a partner to lead its African strategy.
“We aim to support green growth initiatives in Africa by deploying renewable energy, low-carbon buildings, and sustainable mobility solutions,” explains Diaz. “However, we also recognize the urgency of adaptation solutions. Climate change is already impacting vulnerable communities, particularly women, people of color, and low-income groups. Satgana seeks to invest in solutions that traditionally receive minimal VC funding, maximizing our impact.”
Satgana joins a growing group of climate tech-focused funds targeting Africa, including Novastar Ventures’ Africa People + Planet Fund, Equator’s fund, and the Catalyst Fund.
This increasing investment focus bodes well for the continent’s ability to combat climate change and build a sustainable future.
