E3 Capital and Lion’s Head climate fund hits first close at $48M to back African startups
By Editor - Tue May 23, 4:03 am
The E3 Low Carbon Economy Fund for Africa (E3LCEF), a fund by early-stage VC E3 Capital (formerly Energy Access Ventures), and emerging markets-focused investment bank Lion’s Head Global Partners, has hit the first close at $48.1 million. The E3LCEF limited partners include FMO, the Dutch entrepreneurial development bank; Swedfund International AB, the Swedish development finance institution; Proparco, an AFD Group subsidiary and private sector development investor, and KfW, a development bank, in partnership with BMZ, the German ministry for economic cooperation and development. The fund targets to close at $100 million, joining the growing list of funds backing startups in Africa’s climate tech sector. The fund will provide initial and follow-on funding to startups, such as solar providers and EV startups, supporting low carbon economies. African climate startups set to gain ground as VC funding shifts their way “African businesses are starting to emerge with clear product market-fit, and a strong commercial potential at the core within the low carbon economy. The quality of entrepreneurs we are seeing is striking,” founder and managing partner E3 Capital, Paras Patel , said in a statement. “We are passionate about helping African entrepreneurs build the next generation of innovative businesses that innovate, scale and impact the lives of all of us in the coming years,” said Patel.
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E3 Capital and Lion’s Head climate fund hits first close at $48M to back African startups