Grace Ashiru
Climate tech VC Satgana has successfully closed its inaugural fund, with the goal of supporting up to 30 early-stage startups across Africa and Europe.
The venture capital firm successfully concluded its fundraising efforts, securing a total of €8 million ($8.6 million) in commitments from family offices and high-net-worth individuals. Notable contributors include Maurice Lévy from Publicis Groupe and Thibaud Hug de Larauze, co-founder of Back Market.
Satgana’s founder and general partner, Romain Diaz, explained to TechCrunch that the firm made the decision to close the fund ahead of schedule. This was due to the challenging fundraising landscape, which particularly affects first-time fund managers. The focus now is on investing in and supporting portfolio companies.
“We successfully launched the fund in mid-2022, raising capital during one of the most challenging periods since 2015. Despite this, we have already made 13 investments. With our current capital commitments, we are confident in our ability to execute our strategy of investing in 30 companies in this first fund, including follow-on investments,” stated Diaz.
This initiative also sets the stage for the possible launch of a new fund in the coming years. There is a strong likelihood that we will introduce multiple funds with diverse strategies, such as one tailored for Europe and another for Africa. However, our primary focus at present is to ensure the success of this fund.
The VC firm provides funding of up to €300,000 ($325,000) for early-stage startups focusing on mitigating and enhancing resilience to climate change. The firm displays a preference for startups in the mobility, food and agriculture, energy, industry, buildings, and circular economy subsectors.
Satgana’s investments in Africa encompass a diverse range of ventures, including Amini, a pioneering startup addressing the environmental data gap on the continent. Additionally, the company has invested in Mazi Mobility, a Kenyan enterprise focused on developing a network of battery-swapping infrastructure to enhance mobility services. Kubik, another investee, operates in Ethiopia and specializes in plastic upcycling. Lastly, Revivo, a B2B marketplace, is dedicated to extending the lifespan of electronic devices such as phones by selling spare parts. In Europe, Satgana has made strategic investments in Orbio Earth, Yeasty, Loewi, Arda, Fullsoon, and Fermify.
After gaining a decade of experience in the venture space across various African countries, including Morocco and South Africa, Diaz went on to establish the VC firm. His prior involvement in co-founding and managing a venture studio in South Africa contributed to his extensive expertise in the field.
“I operated it for approximately five years, and it was around six years ago that I truly became aware of the severity of climate change. This realization prompted me to leverage the insights gained from my prior endeavors, but on a larger platform, with a specific focus on supporting climate tech founders through investment,” he explained.
Upon relocating to Europe, Diaz established the VC firm, citing the region’s robust investment networks, particularly those that prioritize funding for founders at the pre-seed stage.
Satgana’s focus on Africa is motivated by the continent’s vulnerability, despite its minimal contribution to greenhouse gas emissions. The recent appointment of Anil Maguru as a partner reflects their commitment to driving their Africa strategy.
We are committed to advancing our green growth objectives as we make our entry into the continent. Our focus is on deploying renewable energy, low-carbon buildings, and innovative mobility solutions. Additionally, we are dedicated to investing in initiatives that promote adaptation to climate change. It’s crucial to acknowledge that the impacts of climate change are already being felt, particularly by vulnerable communities, including women, people of color, and low-income groups. These communities are on the frontline and are disproportionately affected by climate change.
“It’s crucial for us to prioritize investment in solutions that typically receive only a small portion of VC funding from an impact standpoint,” he emphasized.
Satgana is one of the latest funds committed to the African climate tech sector. Other funds in this category include the Africa People + Planet Fund by Novastar Ventures, Equator’s fund, and the Catalyst Fund.
