The latest fundraising round attracted new commitments from the International Finance Corporation (IFC), Financing for Agricultural SMEs in Africa (FASA), Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact, the Women Entrepreneurs Finance Initiative (We-Fi), and a group of private investors.

The fund, led by Maelis Carraro, Maxime Bayen, Olúwatóyìn Emmanuel-Olubake, and Amolo Ng’weno, invests in startups from pre-seed through Series A.

Its focus spans agriculture, food systems, clean energy, water, mobility, fintech, and other technologies that help businesses and communities adapt to the growing impact of climate change.

Catalyst Fund plans to invest in around 40 startups across the continent and expects to complete its final fundraising close later this year.

The new investors join existing backers, including FSD Africa, FSD Africa Investments and Cisco Foundation, which supported the fund during its first close.We-Fi’s participation is expected to strengthen Catalyst Fund’s pipeline of women-led businesses, reflecting growing investor interest in increasing access to venture capital for female entrepreneurs in Africa.

“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,” said Maelis Carraro, Founder and General Partner at Catalyst Fund.

“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.”

The fund has already deployed capital into 28 startups operating across 10 African markets.Its portfolio includes Kenya’s Keep It Cool, which develops solar-powered cold-chain infrastructure for fishers and poultry farmers; Tanzania’s MazaoHub, which combines artificial intelligence-powered soil analysis, agronomy support and digital market access for smallholder farmers; and Egypt-based Bekia, a circular economy platform that connects households and businesses with waste collectors and recyclers through technology.

Beyond financing startups, Catalyst Fund operates a venture-building model developed with BFA Global, providing founders with operational support in product development, commercial growth, fundraising, hiring and strategic partnerships.

The approach is designed to help early-stage companies overcome many of the execution challenges that often limit startup growth in African markets.

Farid Fezoua, Global Director for Disruptive Technologies, Services and Funds at IFC, said the partnership demonstrates how development finance can help strengthen Africa’s innovation ecosystem.

“Across Africa, entrepreneurs supported through Catalyst Fund are strengthening livelihoods, expanding access to essential services, and creating quality jobs in underserved communities. 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.”

A significant portion of the latest fundraising momentum came from FASA, which committed $5 million as a junior equity investment designed to absorb early risk and encourage additional institutional investors to participate.

FASA, a fund-of-funds managed by Investisseurs & Partenaires (I&P), was launched to improve financing for agricultural SMEs by backing investment managers focused on food systems and climate resilience.

“FASA’s mission is to reduce the funding gap faced by agri-SMEs in Africa by mobilising catalytic capital, empowering investment managers, and fostering a supportive ecosystem,” said Mamadou Ndao, Investment Director at FASA.

“We chose Catalyst Fund because their investment strategy and embedded venture-building model directly address the critical gaps faced by early-stage climate entrepreneurs.”

The second close also attracted new international investors, including Trafigura Foundation and Shell Foundation, broadening the fund’s mix of development finance institutions, philanthropic organisations, family offices and private investors.

Several of the participants are making their first investment into an Africa-focused climate venture fund, highlighting growing international confidence in the continent’s climate technology ecosystem.

Africa remains one of the regions most exposed to climate risks, despite contributing only a small share of global greenhouse gas emissions.

Rising temperatures, prolonged droughts, flooding and shifting weather patterns continue to disrupt agriculture, food security, infrastructure and energy systems, creating growing demand for technologies that improve resilience while supporting economic growth.

Against that backdrop, climate-focused startups have become an increasingly important segment of Africa’s venture capital market as investors look for scalable businesses capable of addressing both commercial opportunities and long-term adaptation needs.