VC climate technology Satgana has successfully closed its seed fund, aiming to support up to 30 early-stage startups across Africa and Europe.
The venture capital firm has successfully completed its fundraising efforts, securing a total of €8 million ($8.6 million) in commitments from family offices and high net worth individuals. Important contributors include Maurice Lévy from Publicis Groupe and Thibaud Hug de Larauze, co-founder of Back Market.
Satgana founder and general partner Romain Diaz explained to TechCrunch that the firm made the decision to close the fund early. This was due to the difficult 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 in one of the most difficult periods since 2015. However, 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,” said Diaz.
This initiative also lays the groundwork for the possible launch of a new fund in the coming years. There is a high possibility that we will introduce multiple funds with different 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 focused on mitigating and building resilience to climate change. The company prefers startups in the mobility, food and agriculture, energy, industry, buildings and circular economy subsectors.
Satgana’s investments in Africa include a wide range of businesses, including Amini, a pioneering startup addressing the continent’s environmental data gap. In addition, the company has invested in Mazi Mobility, a Kenyan business focused on developing a network of battery sharing infrastructure to improve mobility services. Kubik, another investor, operates in Ethiopia and specializes in recycling plastics. Finally, Revivo, a B2B marketplace, is dedicated to extending the life 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 business space in various African countries, including Morocco and South Africa, Diaz went on to found the VC firm. His previous involvement in co-founding and managing a venture studio in South Africa contributed to his extensive experience in the sector.
“I ran it for about five years and it was about six years ago that I really realized the seriousness of climate change. This realization prompted me to leverage the knowledge gained from my previous endeavors, but on a broader platform, with a specific focus on supporting climate tech founders through investment,” he explained.
After relocating to Europe, Diaz founded the VC firm, citing the region’s strong investment networks, particularly those that prioritize funding 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 partner reflects their commitment to drive their Africa strategy.
We are committed to advancing our green growth goals as we make our foray into the continent. Our focus is on the development of renewable energy sources, low carbon buildings and innovative mobility solutions. In addition, we are committed to investing in initiatives that promote climate change adaptation. It is important to recognize that the effects 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 front lines and disproportionately affected by climate change.
“It’s vital for us to prioritize investing in solutions that typically only receive a small fraction of VC funding in terms of impact,” he stressed.
Satgana is one of the latest funds to commit to Africa’s climate tech sector. Other funds in this category include Novastar Ventures’ Africa People + Planet Fund, Equator fund and Catalyst Fund.