Investor Profile: Catalyst Fund — Thesis, Cheque Size & How to Apply

Catalyst Fund began in 2016 as an inclusive fintech accelerator for underserved communities in emerging markets, and has since evolved into a venture capital fund with a climate resilience mandate. Managed by BFA Global, it backs startups that improve the financial health and resilience of people poorly served by formal finance.

Thesis

Catalyst Fund was built on a simple gap: founders serving underserved customers faced a lack of funding, talent and access to markets and networks. Its original answer was catalytic capital plus hands-on venture building. From late 2022 it expanded its mandate to climate resilience, arguing that resilience must be built into every sector from financial services to agriculture, water and energy. Its new fund invests equity at pre-seed and follows on at seed and Series A.

Sectors and stages

Catalyst Fund originally supported fintech and embedded fintech across three areas: financial health, essential services and the future of work. Its focus markets have included Kenya, Nigeria, South Africa, Mexico and India. Today its climate resilience portfolio stretches into drought resistant agriculture, disaster insurance, cold chain logistics and sustainable fisheries. The stage focus remains early: pre-seed first, with follow-on for the best portfolio companies.

Fund size and cheque size

Catalyst Fund is not a single disclosed fund size story. As a philanthropic accelerator it was backed by a 12 million pound commitment, about $15 million, from UK aid and J.P. Morgan announced in 2020 to support 30 additional startups across five markets over three years. Its venture capital fund size and standard cheque size are not publicly disclosed in the sources reviewed. The accelerator model used non-dilutive catalytic capital, including grants and recoverable grants, while the newer model uses equity.

Notable portfolio

Catalyst Fund backed 61 inclusive fintech startups in 15 emerging markets over its first six years. African names include Turaco in East Africa, Wasoko, Cowrywise in Nigeria and Chipper Cash. Other names include Kwara, Pesakit, Meerkat and FarMart. The fund reports that 80% of those ventures were led by local founders, 40% by women founders, and that the cohort went on to raise over $650 million in follow-on capital, reaching 14 million customers, with 88% still growing.

Partners and team

Catalyst Fund was created with support from JPMorgan Chase and Co, the Bill and Melinda Gates Foundation, PayPal and the UK Foreign, Commonwealth and Development Office, and was fiscally sponsored by Rockefeller Philanthropy Advisors. It is managed by BFA Global. Its venture building team runs sprints in product, data, technology, growth and fundraising, and the fund reports a venture building net promoter score of over 95 on average.

Programs, credits and perks

The flagship offer of Catalyst Fund is its venture building programme: hands-on support from emerging markets and fintech experts, plus access to a global network of investors and corporate partners. The original Inclusive Fintech Accelerator provided catalytic grants and venture building; the current model embeds venture building in pre-seed equity tickets.

How to apply for funding from Catalyst Fund

No open application portal for Catalyst Fund was verified at the time of writing, and its cohorts have historically run on a selection basis. Founders should approach the fund only through its official site, thecatalystfund.com, using the contact route published there.