The second close comes as investment in the African climate technology sector recovers after a 2024 slump. Climate tech funding fell to $754 million that year, according to TechCabal Insights’ funding tracker, before rebounding to $1.1 billion by November 2025. The recovery suggests growing investor confidence in the sector.

“Climate adaptation is one of the defining investment themes of the next decade, especially in Africa, where the need is immediate, and the entrepreneurial talent is extraordinary,” Maelis Carraro, founder and general partner at Catalyst Fund, said in a statement. “This second close allows us to double down on our mission: backing ambitious founders building practical, scalable solutions for a climate-changed world, and supporting them not just with capital, but with the hands-on venture-building support they need to grow.”

New backers in the second close include the International Finance Corporation (IFC), Financing for Agri-SMEs in Africa (FASA), Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact, and Women Entrepreneurs Finance Initiative (We-Fi), which would support the fund’s efforts to expand its pipeline of women-led startups. They join existing investors, including FSD Africa and the Cisco Foundation.

“Across Africa, entrepreneurs supported through Catalyst Fund are strengthening livelihoods, expanding access to essential services, and creating quality jobs in underserved communities,” Farid Fezoua, global director for disruptive technologies, services, and funds, IFC, said. “Through IFC’s partnership with Catalyst Fund, we are mobilising capital and expertise to help these early‐stage ventures scale sustainably, attract private investors, and deliver lasting impact for people and markets.” 

The second close follows a $9 million first close in the third quarter of 2023, according to the firm. Since then, Catalyst Fund said it has built a portfolio of 28 startups across 10 African markets and made nine follow-on investments into its strongest-performing companies.

Its portfolio companies include MazaoHub, a Tanzanian agritech startup; Bekia, an Egyptian platform connecting waste producers with collectors and recyclers; and Keep It Cool, a Kenyan startup building solar-powered cold-chain infrastructure for fish and poultry farmers.

The firm disclosed that it invests exclusively through equity, typically writing $200,000 pre-seed cheques before reserving additional capital for follow-on rounds. Although it invests across Africa, it noted that its largest markets today are Nigeria, Kenya, Egypt, and Tanzania, where it said climate technology ecosystems have developed most rapidly.

Catalyst Fund also noted that beyond capital, it pairs its investments with venture-building support delivered by BFA Global to work with startups on product strategy, hiring, commercial growth, fundraising, and partnerships. It added that the model is designed to help founders overcome operational challenges that are often missing in early-stage companies.

For Catalyst Fund, investing in climate technology has evolved from being impact-focused as the sector proves it can deliver both commercial returns and measurable impact. 

“Climate is no longer a niche investment theme—it’s reshaping virtually every sector of the economy, from agriculture and logistics to healthcare and financial services,” said Maxime Bayen, general partner at Catalyst Fund. “Investors increasingly recognize that businesses helping people and industries adapt to climate change are addressing large, growing markets with strong commercial fundamentals.”

Catalyst Fund said it is now focused on completing its final raise, which it expects to conclude before the end of the year, while continuing to deploy capital.

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