Satgana, a venture capital firm dedicated to climate tech innovation, has closed its first fund of $8.6 million to support startups in Africa. Founded in 2020 by Romain Diaz, Satgana aims to accelerate climate goals on the continent while creating jobs. The firm has already backed 17 companies, including Kubik, an Ethiopian cleantech startup, and Mazi Mobility, a Kenyan mobility startup.

Africa is particularly vulnerable to climate change, facing heatwaves, heavy rains, floods, tropical cyclones, and prolonged droughts. Satgana believes that investing in underserved areas of climate tech will lead to both environmentally impactful and economically viable solutions. The firm prioritizes investments in sectors like agriculture, carbon removal, industry and building, and mobility, with a focus on "green discounts" to make sustainable solutions more affordable.

In an interview with TechCabal, CEO Romain Diaz discussed the untapped opportunities in Africa's climate tech sector, citing the continent's growing energy demand and entrepreneurial population as key drivers of innovation. Diaz highlighted innovations in sustainable agriculture, energy, and construction as particularly exciting, as well as electric mobility and climate data systems.

Satgana's investment strategy involves backing startups that offer green solutions at a lower cost than traditional alternatives. The firm has invested in companies like Revivo, which refurbishes electronic devices, and Kubik, which produces circular construction materials. These businesses are built around the concept of offering a green solution that is more affordable, making them more scalable and attractive to consumers.

When evaluating startups, Satgana prioritizes the strength of the founding team, looking for a balance between visionary thinking and execution ability. The firm also considers the ability to adapt and persevere through challenges, as well as the potential for partnerships and collaborations to drive growth.

Looking ahead, Satgana plans to invest in South Africa, with a focus on emerging trends like nature-based solutions. The firm believes that Africa's rich biodiversity and natural resources offer immense potential, but notes that scaling nature-based solutions can be challenging due to the mismatch between venture capital expectations and the incremental growth of natural processes.

Despite these challenges, Satgana remains committed to supporting climate tech innovation in Africa, recognizing the critical role that startups can play in driving sustainable growth and development. As the firm continues to grow and invest in the region, its impact is likely to be felt across the continent.