The Dutch development bank FMO has approved a €2.5 million development contribution to support early-stage climate technology startups backed by the Persistent Africa Climate Venture Builder Fund (ACV Fund), a new closed-ended investment vehicle managed by Persistent Energy Capital LLC.
The funding will establish a dedicated Venture Building (VB) Facility within the fund — a ring-fenced, grant-based platform designed to provide operational and strategic support to between 25 and 30 clean technology startups across Sub-Saharan Africa.
Strengthening Africa’s climate startup pipeline
The VB Facility will deliver both pre- and post-investment support to startups operating in sectors such as distributed solar, energy efficiency, electric mobility, agritech and circular economy solutions.
Support will focus on areas that development finance institutions often identify as weaknesses in early-stage African ventures, including financial and legal structuring, governance, environmental and social governance (ESG) integration, reporting systems and milestone tracking.
According to FMO, the initiative is intended to improve the investment readiness, scalability and financial performance of climate startups while advancing climate mitigation and gender inclusion goals. Under the bank’s internal framework, the project is classified as “Climate Mitigation (principal)” and “Gender (significant)”.
Tackling structural funding gaps
Early-stage climate ventures in African markets such as Nigeria, Democratic Republic of the Congo, Ethiopia, Ghana, Senegal, Côte d’Ivoire, Kenya and Cameroon often face structural barriers such as limited access to equity capital, shortages of specialised technical talent and high perceived investment risk.
By separating venture-building activities from the fund’s commercial capital, FMO said the grant delivers “financial additionality” by funding advisory and ecosystem support services that private investors typically do not finance independently.
Backing from African Development Bank
The ACV Fund has already secured additional support from the African Development Bank, which committed $10 million in 2024 through the Sustainable Energy Fund for Africa (SEFA).
The investment is expected to help mobilise up to $70 million in total capital for climate-focused ventures across the continent.
Projections shared by the fund suggest its portfolio could contribute to deploying 200 megawatts of renewable energy capacity, expanding energy access to more than 420,000 households and 31,000 businesses, avoiding roughly 17 million tonnes of CO₂ emissions, and supporting the creation of more than 66,000 jobs. These projections, however, depend on successful project deployment and follow-on investment.
Growing interest in venture builder models
Founded in 2012, Persistent Energy positions itself as a climate-focused venture builder, combining early-stage equity investment with operational expertise. The firm says it has managed or advised on more than $265 million in climate-related assets across advisory mandates and investments.
The venture builder model — which pairs capital with hands-on operational support — is gaining traction in African climate tech ecosystems, where founders often require deeper support compared with startups in more mature markets.
Persistent’s investment strategy also aligns with the global 2X Challenge framework on gender-lens investing, with the VB Facility providing targeted support for women-led and women-managed enterprises.
For FMO, the grant forms part of its 2030 Strategy and Market Creation Programme, which focuses on strengthening local investment ecosystems and reducing structural barriers to private capital.
As development finance institutions increasingly turn to blended finance structures, the ACV Fund will serve as a test case for whether grant-backed venture building can help transform Africa’s early-stage climate startups into scalable, investment-ready businesses capable of delivering both impact and financial returns.
