BFA Global’s Catalyst Fund has achieved its initial funding milestone, garnering $8.6 million out of the targeted $40 million for investments in climate-focused startups across Africa.
Participation in this initiative came from FSD Africa Investments (FSDAi), Cisco Foundation, USAID Prosper Africa, and Andrew Bredenkamp.
While the primary aim of the Catalyst Fund is to support climate-focused startups in their expansion throughout Africa, it also has plans to invest in diverse sectors such as agritech, insurtech, and climate fintech. This encompasses startups specializing in fishery management, food systems, cold chain logistics, waste management, and water resource management.
To date, it has provided support to ten startups from six different countries, including Egypt, Senegal, and Morocco. In 2023, Catalyst Fund aims to fund 20 startups and double that number over the next few years.
The initial investment for pre-seed companies will be $200,000, followed by subsequent rounds of $500,000 for seed funding and $1.5 million for series A rounds.
Established in 2016, the Catalyst Fund began as a pre-seed accelerator, assisting startups with challenges like access to capital, talent, and markets. This was achieved through collaborative efforts with organizations such as the UK Foreign Commonwealth and Development Office (FCDO) and the Bill & Melinda Gates Foundation. In the accelerator program, it supported 61 startups in 15 emerging markets, including notable names like Turaco, Wasoko, Cowrywise, and FarMart. In 2022, it transitioned from an accelerator to a venture capital fund.