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FSD Africa led $3.5 M secured by Catalyst Fund to accelerate, scale pre-seed impact ventures

The BFA Global-managed Catalyst Fund, a renowned accelerator and pre-seed impact fund for entrepreneurs in emerging markets has received a US $3.5 million investment from specialised development agency FSD Africa to establish its footprint in Africa and expand its operations.

In order to provide inclusive solutions for neglected and climate-vulnerable populations, Catalyst Fund promotes inclusive digital innovators in developing markets. Meanwhile, FSD Africa, a specialized development organization, is aiming to make finance work for the future of Africa.

61 firms from emerging economies that Catalyst Fund has supported to far have together generated more than US $573 million in follow-on investment and served over 13.2 million low-income clients.

Fintech solutions that increase the resilience of underprivileged and climate-vulnerable communities in emerging countries will be offered by the following batch of businesses.

With the help of FSD Africa, Catalyst Fund will invest in high-impact companies and provide hands-on venture-building support to communities that are underprivileged and climate vulnerable, with a target of assisting 40 pre-seed impact initiatives across Africa. By engaging investors, networks for developing capacity, and corporate innovators to unlock finance, recruit talent, and exchange information about fintech solutions suited to those communities’ needs, the accelerator will also continue to create robust innovation ecosystems.

“We are thrilled to welcome FSD Africa as an anchor investor of Catalyst Fund to enable our next phase of growth. The challenge of climate adaptation is central to our core mandate of accelerating innovation that improves the resilience and livelihoods of the world’s most vulnerable communities, particularly women,” said Maelis Carraro, managing partner of Catalyst Fund.

“As a woman-led fund, we are particularly proud to share that at least 40 percent of the founders in our portfolio will be women and at least 80 percent local to their country of operation. We seek to both transform the lives of vulnerable households and businesses, but also to accelerate the overall innovation ecosystem.”

A robust, fair, and easily accessible financial system, according to Juliet Munro, director of digital economy at FSD Africa, is essential for a sustainable future for Africa’s population and environment.

“In particular, we believe that finance can play a major role in tackling climate vulnerability and that by harnessing the power of fintech innovation we can help address market barriers to building out much-needed climate resilience solutions. Our partnership with Catalyst Fund will spur innovation by investing in and supporting entrepreneurs while at the same time helping to influence and expand the pool of investment into this space,” she said.




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