VC Firm Equator Raises $55M To Back African Climate Tech
- Equator has raised $55 million for its first fund to support early-stage climate tech startups in Africa.
- The funding environment for African climate tech ventures is tightening due to shrinking aid budgets and reduced capital from development finance institutions.
- Equator plans to invest in 15 to 18 startups with funding ranging from $750,000 to $2 million.
Equator's initiative to fund climate tech startups in Africa is a crucial step towards addressing climate challenges in the region. However, the reliance on development finance institutions may pose risks as global capital flows fluctuate. The shift towards prioritizing profitability over impact could lead to sustainable growth in the sector, but it is essential to maintain a balance between economic viability and environmental responsibility.
