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    HomeEcosystem NewsHere’s How VC Satgana Will Invest Its New $8.6M Fund In African Startups

    Here’s How VC Satgana Will Invest Its New $8.6M Fund In African Startups

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    Climate-tech venture capital firm Satgana has successfully concluded the final close of its inaugural fund, aimed at supporting early-stage startups across Africa and Europe in combating climate change.

    The firm has secured €8 million ($8.6 million) in commitments from various family offices and high-net-worth individuals, including notable figures such as Maurice Lévy from the Publicis Groupe, and Thibaud Hug de Larauze, co-founder of Back Market.

    Romain Diaz, the Founder and General Partner of Satgana, revealed to TechCrunch that despite facing challenges in fundraising, especially as a first-time fund manager, they managed to close the fund earlier than anticipated. Diaz explained that the decision to conclude the fund early was to concentrate on investing in and supporting portfolio companies.

    “We launched the fund mid-2022, during what has been the most challenging fundraising period since 2015. Despite this, we’ve made 13 investments, and with the current capital commitments, we’re confident in executing our strategy of investing in 30 companies for this initial fund, including follow-on investments,” Diaz stated.

    He also hinted at the possibility of launching new funds with different strategies in the future, potentially focusing on specific regions like Europe and Africa.

    Satgana typically invests up to €300,000 ($325,000) in early-stage startups that are dedicated to mitigating and adapting to climate change. The firm prioritizes sectors such as mobility, food and agriculture, energy, industry, buildings, and the circular economy.

    Among its portfolio companies in Africa are Amini, Mazi Mobility, Kubik, and Revivo, each addressing critical environmental challenges with innovative solutions. In Europe, Satgana has invested in companies like Orbio Earth, Yeasty, Loewi, Arda, Fullsoon, and Fermify.

    Diaz’s motivation for establishing Satgana stemmed from his extensive experience in venture capital across various African countries, where he witnessed firsthand the urgency of addressing climate change. His move to Europe provided access to robust investment networks, particularly those focusing on pre-seed stage founders.

    Satgana’s commitment to Africa is underscored by the appointment of Anil Maguru as a partner to drive their strategy on the continent. Diaz emphasized the importance of investing in solutions that tackle climate change, especially considering its disproportionate impact on vulnerable communities, including women, people of color, and low-income groups.

    “We are entering the continent to pursue green growth objectives, deploying renewable energy, low-carbon buildings, mobility solutions, and more. Additionally, we are keen on investments that drive adaptation to climate change, recognizing the urgent need for solutions,” Diaz explained.

    Satgana joins a growing cohort of funds dedicated to the African climate tech sector, aligning with the broader mission of fostering sustainable development and resilience across the continent. Other notable funds in this space include the Africa People + Planet Fund by Novastar Ventures, Equator’s fund, and the Catalyst Fund.

    Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

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