Catalyst Fund has completed a $30 million second close toward a $40 million target, aiming to back about 40 African climate-tech startups.
Catalyst Fund has completed a second close, bringing total commitments to $30 million as it works toward a $40 million target. A “close” is a checkpoint in fundraising where a fund finalises commitments from some investors, even if the fund is still raising.
The pan-African venture fund focuses on startups building climate adaptation and resilience solutions. That includes tools and services that help communities and businesses cope with climate stress, like drought, flooding, and heat.
The fund is led by partners Maelis Carraro, Maxime Bayen, Olúwatóyìn Emmanuel-Olubake, and Amolo Ng’weno. Catalyst said it plans to grow its portfolio to around 40 startups across Africa.
The announcement lands as African climate tech funding shows signs of recovery after a slowdown in 2024. Climate-tech funding fell to $754 million in 2024, then rebounded to $1.1 billion by November 2025, based on TechCabal Insights tracking cited in the report.
Catalyst also framed the sector as shifting beyond pure impact investing. It is increasingly being pitched as a category that can deliver commercial returns alongside measurable climate outcomes.
Africa is highly exposed to climate risk, and many adaptation needs are local and operational, not theoretical. That creates a big market for founders building practical products in energy access, agriculture, water, insurance, and climate data.
For investors, a $30 million second close is a signal that dedicated climate funds are still raising, even as many generalist VC funds remain cautious. If Catalyst reaches its $40 million target, it could provide more consistent early-stage cheques and follow-on support for climate-focused startups.
The next test will be deployment speed and follow-on capital. Early-stage climate startups often need patient funding because pilots can take time, and hardware or infrastructure-linked models can be slower to scale than pure software.
Primary Source: Techcabal
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