Investors update: February 21 2023 - Sasol launches $53m VC fund

Sasol launches $53m VC fund for decarbonization ambitions

Highlights

• South African energy giant Sasol has launched Sasol Ventures to advance its decarbonization and 2050 net zero ambitions through venture capital.
• The fund will pursue investments in startup and early-stage technologies that will enable Sasol to meet the need for sustainable chemicals and energy solutions to decarbonize its business, communities, and markets it serves globally.
• It will invest $53 million over the next five years, making it the largest chemicals and industry venture capital fund in South Africa.

Source: ABC

Our Takeaway

The African venture capital terrain has changed in the last few years, and now there is an evident influx of corporate-facilitated VC funds combined with the other kinds of funding opportunities available to startups. Corporate venture capital, though nascent, has been on the rise. The majority of CVC activity in the continent happens in South Africa, led by multinational giants Naspers, Standard Bank, Nedbank, and Multichoice, all of which have in the past decade set up CVC units.

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AfricaGoGreen fund secures $47m to fuel climate resilience

Highlights

• AfricaGoGreen Fund secured $47 million in its second fundraising round to finance climate-friendly projects in Africa. 
• Top financial organizations including the IFC, AfDB, the Nordic Development Fund, and the Sustainable Energy Fund for Africa combined to provide the funding.
• The funding is expected to be used to purchase high-efficiency appliances and industrial equipment, retrofit existing buildings, and new green buildings, and finance the installation of rooftop solar and battery storage for residential, commercial, and industrial consumers.

Source: Ventureburn

Our Takeaway

Climate change affects Africa more than other continents but at the same time, nowhere promises bigger opportunities than in Africa. The continent offers a massive investment opportunity given the need to reinvent all sectors, and we’re already seeing new value chains and business models created – from sustainable agribusiness to renewable energy, driven by a young and rapidly-growing population increasingly tackling big challenges and creating new markets. These present an ever-increasing pipeline of climate-related investment opportunities.

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Startup Wise Guys to scale Africa operations with fresh $26.7m

Highlights

• VC and accelerator firm Startup Wise Guys has closed the first $26.7 million of $48 million that will be used to support its new strategy focused on global markets that remain underserved by capital investment.
• Founded in Estonia in 2012, Startup Wise Guys manages SaaS and cybersecurity accelerators. The company expanded to Africa in 2021, and last November selected nine startups to take part in the second edition of its accelerator.
• With the new funds, it plans to invest in a minimum of 200 startups from mostly across Europe and Africa in 2023 and 2024, after making 120 investments in 2022.

Source: Disrupt Africa

Our Takeaway

One of the “defining trends” of Africa’s venture capital landscape in 2022, per a Briter Bridges report, was a notable growth in the early-stage support framework available to startups on the continent, involving angel networks, seed funds, and accelerator programs. The benefits of this in the African startup landscape can’t be overstated, especially in times of economic uncertainty. So far, the company claims to have worked with more than 500 founders, made more than 235 startup investments, seen five exits, and achieved an overall startup survival and success rate above 77%.