Equator closes $55M fund to bring more private capital to African climate tech

African venture capital firm Equator has raised $55 million for its first fund, which will back climate tech startups through one of the most difficult and often overlooked phases in their journey: the early stage. Climate tech startups in African countries have to navigate a tougher funding landscape than their counterparts in more developed economies, where governments often subsidize companies working on greener technologies. They have to instead rely heavily on development finance institutions (DFIs), foundations, and endowments, making them especially vulnerable to shifts in global capital flows. As aid and development finance budgets shrink, DFIs deploy less capital, which adds to the pressure on African startups. The situation is worse for climate tech companies, which require more capital than traditional tech startups. With its fund, Equator feels it can bridge this gap and back scalable solutions that can attract private capital. “We are needed more than ever to invest in ... Read full article.