E3 Capital and Lion’s Head climate fund closes at $48M for the first time to support African startups

E3 Low Carbon Economy Fund for Africa (E3LCEF), an early stage VC fund Capital E3 (formerly Energy Access Ventures) and investment banking focused on emerging markets Lion head Global Partners, reached its first close at $48.1 million.

E3LCEF’s limited partners include FMO, the Dutch entrepreneurial development bank; Swedfund International AB, a Swedish development finance institution; Proparco, a subsidiary of the AFD Group and a private sector developer, and KfW, a development bank, cooperate with BMZ, the German Ministry of Economic Cooperation and Development.

The fund aims to close at $100 million, joining a growing list of funds supporting Africa’s climate tech startups. The fund will provide initial and subsequent capital to startups, such as solar providers and EV startups, supporting low-carbon economies.

“African businesses are starting to emerge with a clear product-market fit and strong commercial potential at the core of a low-carbon economy. The quality of entrepreneurs we are seeing is impressive,” said E3 Capital founder and managing partner, Paras Patelsaid in a statement.

“We look forward to helping African entrepreneurs build the next generation of innovative businesses to innovate, scale and impact the lives of all of us in the years to come,” said Patel. .

E3 Capital partner Vladimir Dugin told TechCrunch that VCs, which seed Series A startups, typically invest between $500,000 and $3 million. The new fund will invest in businesses across sub-Saharan Africa.

E3 Capital, an active investor in Africa, currently manages the €75 million Energy Access Venture Fund I (EAVFI), has made 15 investments in non-energy businesses concentrated in East, West and South Africa.

Lion’s Head Asset Management has a portfolio of $700 million and has a subsidiary that provides corporate financial advisory services to governments, multilaterals and private companies.

“We feel this is a great time to support low-carbon businesses in Africa that are beginning to realize the potential of significant scale. The E3 team brings unique expertise in working with early stage companies across the continent and has proven this with their existing portfolios that are starting to show signs of winners. clear win,” said Lion CEO Clemens Calice.

E3LCEF and other climate-focused funds in Africa are providing much-needed funding amid a capital crisis to founders leading energy transition efforts and providing mitigation solutions. or help communities cope with the impacts of climate change.

Recent emerging funds include Pan-African VC Novastar’s $200 million African People + Planet Fund, supporting the founders to develop agricultural and climate solutions on the continent. Climate technology venture capital firm Equator also achieved initial closing of the fund to support seed and Series A startups in the energy, agriculture and mobility sectors.

Other Africa climate-focused investment vehicles that have recently raised capital include satganaThe AfricaGoGreen Foundation (AAGF), closed its second round of fundraising in February, and the Energy Entrepreneur Growth Fund (EEGF), raised more than $110 million last year. Oxfam Novib and Goodwell also set up a new fund to provide venture debt to startups in the field.

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