Persistent has launched a new $70 million Africa Climate Venture Fund (Persistent ACV Fund) aimed at supporting early-stage climate startups across the continent. The fund has reached a first close of $52 million, along with an additional $5 million Venture Building Facility that will help entrepreneurs strengthen and scale their businesses.
The Mauritius-based fund will focus on investing in innovative African startups working in energy, agriculture and resource management. It will primarily support companies from pre-seed to Series A stage, while also allowing follow-on investments in high-performing businesses as they grow.
The initiative is expected to play an important role in expanding climate innovation across Africa. By combining venture capital investment with operational support, Persistent aims to help startups move from early traction to sustainable and scalable businesses that can deliver both environmental and economic impact.
The Partners of Persistent said reaching the first close shows strong investor confidence in both the strategy and the potential of African climate innovation. “We are excited to move into the investment phase as we continue to back entrepreneurs building businesses across Africa’s Energy, Agriculture and Resource Transitions. We are thankful for the trust that all our LPs, the contributors to our Venture Building Facility and especially the entrepreneurs we will invest in, are putting in us.”
Addressing the Climate Financing Gap in Africa
Africa faces some of the highest climate risks globally but receives only a small share of global climate finance. Early-stage climate startups in particular often struggle to access the capital and technical support needed to grow their solutions.
The Persistent ACV Fund aims to close this gap by providing both funding and tailored venture-building support. Over the life of the fund, the initiative aims to create significant environmental and socio-economic impact across the continent.
Persistent expects the fund to mitigate more than 17 million tons of carbon emissions, reach over 7 million beneficiaries and create more than 60,000 direct jobs, with a focus on increasing opportunities for women.
The initiative also aims to support over 420,000 households with new or improved electricity connections, economically impact more than 400,000 people and catalyse over $450 million in additional investment into African climate ventures.
The fund is managed by Persistent ACV GP Ltd. and advised by Persistent Energy Capital LLC, a venture capital firm with offices across Africa and Europe.
It was developed in collaboration with FSD Africa Investments (FSDAi), which made an early $10 million anchor commitment to support the fund’s launch. Other anchor investors include the Nordic Development Fund (NDF) and the African Development Bank’s Sustainable Energy Fund for Africa (AfDB SEFA).
Additional investors include the Japan International Cooperation Agency (JICA), the Soros Economic Development Fund, Impact Fund Denmark, the Schmidt Family Foundation and the Cottier Donzé Foundation.
Venture Building Support for Climate Entrepreneurs
A key part of the initiative is the $5 million Venture Building Facility, funded by the Nordic Development Fund and FMO, the Dutch entrepreneurial development bank.
Through this facility, startups supported by the fund will receive hands-on assistance in areas such as finance, fundraising, strategy, technology, legal support, marketing, and environmental and social governance.
This additional support is designed to reduce early-stage risks for startups while helping them build stronger and more sustainable businesses.
Development finance institutions backing the fund say the initiative is an important step in strengthening Africa’s climate innovation ecosystem. By combining catalytic capital with venture-building support, the fund aims to unlock more private investment and help African entrepreneurs develop solutions that support the continent’s clean energy transition, climate resilience and sustainable economic growth.
