Catalyst Fund has secured a further $30 million for the second close of its debut climate resilience fund, reinforcing a thesis that remains relatively underfunded in venture capital: African startups helping communities adapt to climate change rather than simply reducing emissions. The new commitments move the fund closer to its final target, with another close expected later this year.
The firm invests from pre-seed through Series A, backing founders building climate adaptation technologies across agriculture, food systems, clean energy, water, mobility, and other sectors increasingly shaped by environmental pressures. New limited partners include the International Finance Corporation (IFC), Shell Foundation, Trafigura Foundation, FASA, Speedinvest, and BlinkCV, joining earlier supporters such as FSD Africa and the Cisco Foundation.
Catalyst Fund’s model extends well beyond writing cheques. Through its venture-building platform, developed with BFA Global, the firm works closely with portfolio companies on product strategy, hiring, commercial execution, and fundraising. Since launching its investment programme, it has supported 28 startups across 10 African markets.
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General Partner Maelis Carraro argues that climate resilience is becoming one of Africa’s defining investment opportunities as entrepreneurs build businesses around increasingly visible challenges, from drought and flooding to food insecurity and strained water systems.
The latest raise gives the firm additional capacity to back startups that can turn those pressures into commercially viable businesses.
Its portfolio shows focus as Kenya’s Keep IT Cool uses solar-powered cold-chain infrastructure to reduce post-harvest losses. Tanzania’s MazaoHub applies AI and agronomic data to improve farming decisions, while Egypt’s Bekia has built a digital marketplace connecting households and businesses with waste collectors to strengthen the circular economy.
The composition of the investor base is almost as notable as the amount raised. IFC’s participation adds institutional weight at a time when development finance institutions are looking for ways to attract more private capital into climate adaptation.
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FASA committed $5 million through a first-loss structure designed to reduce risk for other investors, while the Trafigura Foundation described the investment as its first allocation to impact investing.
That matters because climate adaptation continues to attract only a small share of global climate finance. Capital still flows overwhelmingly toward renewable energy and emissions reduction, leaving startups focused on resilience to compete for a much narrower funding pool despite growing demand for technologies that help communities respond to climate shocks.
The second close also reflects a broader shift in investor thinking. Climate investing in Africa is gradually moving beyond decarbonisation toward businesses solving immediate operational problems for farmers, households, and enterprises.
Those companies may never command the attention of large utility-scale energy projects, but they often address risks that customers are willing to pay to solve today.
The timing is equally significant. Venture funding across Africa remains disciplined after the exuberance of 2021 and 2022, yet climate technology has proved more resilient than many sectors because investors increasingly view adaptation as a structural, long-term opportunity rather than a cyclical trend.
That backdrop should give Catalyst Fund a solid foundation as it works toward a final close and expands a portfolio expected to back as many as 40 startups across the continent.
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