E3 Capital and Lion's Head Global Partners Secures $48M to Support African Startups
May 23, 2023
Enrich Africa
3 minute(s) Read
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E3 Capital, previously known as Energy Access Ventures, and Lion's Head Global Partners, an emerging markets-focused investment bank, has successfully reached the first close of the E3 Low Carbon Economy Fund for Africa (E3LCEF) with $48.1 million in commitments.

The limited partners of the E3LCEF include FMO, Swedfund International AB, Proparco, and KfW in partnership with BMZ. The fund aims to raise a total of $100 million and joins the growing list of investment vehicles supporting climate tech startups in Africa. It will provide both initial and follow-on funding to startups operating in the low-carbon economy, including solar providers and electric vehicle (EV) companies.

Founder and Managing Partner of E3 Capital, Paras Patel, expressed enthusiasm about the potential of African businesses within the low carbon economy, stating that they are demonstrating clear product-market fit and strong commercial potential. The fund aims to support and empower African entrepreneurs in building innovative businesses that will have a significant impact on the continent.

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. 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,

Patel, disclosed in a statement

E3 Capital typically invests between $500,000 and $3 million in seed to Series A startups. With the E3LCEF, the fund plans to invest in businesses across sub-Saharan Africa, leveraging its expertise and experience as an active investor on the continent.

READ ALSO - SA's TymeBank Secures $77.8 Million in New Funding Round

Lion's Head, with $700 million under its portfolio, sees this as an opportune time to back low-carbon businesses in Africa, recognizing their potential for substantial growth. The team at E3 Capital brings unique expertise in working with early-stage companies across the continent and has already shown promising results in their existing portfolio.

We feel this is a great time to back low-carbon businesses in Africa which are starting to see potential for substantial scale. The E3 team brings unique expertise working with early-stage companies across the continent and have demonstrated this ability with their existing portfolio which is starting to show signs of clear winners,

said Lion’s Head CEO, Clemens Calice.

The E3LCEF and other climate-focused funds in Africa play a crucial role in providing much-needed funding to founders leading the energy transition and developing solutions that mitigate the impact of climate change. These funds include Novastar's $200 million Africa People + Planet Fund, Equator's climate tech venture capital fund, Satgana, AfricaGoGreen Fund (AAGF), and the Energy Entrepreneurs Growth Fund (EEGF). Additionally, Oxfam Novib and Goodwell launched a fund providing venture debt to startups in this sector.

The success of the E3LCEF's first close demonstrates the growing interest in climate tech investment in Africa, highlighting the potential for sustainable innovation and positive environmental impact across the continent.

May 23, 2023
Enrich Africa
3 minute(s) Read
E3 Capital
Lion's Head Global Partners

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