Equator, a climate tech venture capital firm, has secured $40 million in commitments for its first fund focused on sub-Saharan Africa.
Equator will back seed and Series A startups across the energy, agriculture, and mobility sectors, seeking tech-enabled ventures that can address the impact of climate change on income inequality in Africa.
The firm is interested in these sectors because of numerous untapped market opportunities, said managing partner Nijhad Jamal. Equator will pay attention to technical founders with domain expertise who are building solutions around clean energy, agriculture and mobility.
The firm will participate in round sizes of $10 million or less, which is typical for pre-Series B clean tech startups in sub-Saharan Africa. For seed stages, the clean tech VC invests between $1 million and $2 million, and for Series A stages, it cuts checks between $2 million and $4 million.
The company will be leveraging support from Factor[e] Ventures, an organization of venture builders and pre-seed investors, which collaborates on sourcing deals and undertaking due diligence.