European Venture Capital firm, Satgana, has secured a €30 million funding to support startups that helps tackle climate change problems on the African continent. The company will use the funding to invest about €500K in the pre-seed and seed stages of startups across Europe and Africa.
Satgana will deploy its team’s network together with some of its investors to assist founders with direct operational and strategic support; this will be in addition to funding, on issues like impact management, technology development, strategy, hiring, and fundraising. The VC firm will beam its focus on food, agriculture, energy, mobility, industry, buildings, carbon removal, and the circular economy as it works to decarbonize all areas of the economy.
The company has already deployed some of the funds to investin 3 climate tech startups: Orbio Earth, a German startup that builds methane intelligence software to allow energy providers monitor and reduce methane emissions with the use of satellites; Mazi Mobility, a Kenyan startup assembling a network of electric motorbikes and battery-swapping infrastructure in East Africa; and Yeasty, a French startup developing an alternative protein leveraging beer yeast with a circular model.
With many African countries not adequately prepared for the disasters associated with climate change, the company’s immediate strategy is to fund climate tech startups, whose functions are very much needed across the continent.
South Africa, Nigeria, the two top countries for startups in Africa, has been affected by floods, leaving over a million people displaced.
The Chief Executive Officer (CEO) of Satgana, Romain Diazwhile speaking with TechCabal on the company’s approach to helping Africa’s vulnerability to the effect of climate change says the frm is looking for solutions linked to climate resilience.
In his words:
“Africa is the most vulnerable continent to climate change, putting its development at systemic risk, despite producing less than 3% of the planet-warming greenhouse gases. The continent is home to 7 of the 10 nations that are most at risk from climate change, including infrastructure threats, food insecurity, floods, droughts, and public health issues.
Continuing, he said: “Climate disasters caused more than 2.6 million people to flee their homes in Sub-Saharan Africa alone in 2021, and the IPCC projects that number will rise to 700 million by 2030. This means that not only do we need to ensure that Africa is on a trajectory of green growth, but we must also find solutions linked to climate resilience.
“Only 7% of climate-related investments are made today, even though many different solutions need to be developed and implemented. Some examples of such models that we are scouting at Satgana include regenerative agriculture, climate-resilient crops, early warning systems for extreme weather events, coastal barriers, water desalinisation; hydroponic agriculture, improved cooling and insulation systems, and modular housing from waste materials. It is worth noting that some of these models are at the intersection of climate change mitigation and adaptation, along with biodiversity and social co-benefits”, Diaz said.
Diaz further added that Satgana will take part in a panel discussion that will discuss the role of venture capital in fighting the menace of climate change at the COP 27.
While speaking on the support the VC firm will offer startups aside funding, Diaz said:
“Startups also need more than just capital, and it is precisely around this gap identification that we have built our value proposition at Satgana. Once we invest, we support startups with knowledge, networks, and hands-on support, based on the needs of each startup.”
