Module 02
Investment Instruments
Three primary capital types fund African climate and green startups: grants, venture debt, and equity. Each suits a different stage, risk profile, and growth strategy. Start with the one that matches where you are today.
Non-dilutive
Grants
Free money — non-repayable, non-dilutive. Best for early R&D, pilots, climate impact and proof of concept.
- Ticket: USD 25 K – USD 10 M
- Stage: Idea → Series A
- Time to close: 3–9 months
Explore grants
Debt
Venture Debt
Loan capital that extends runway with minimal dilution — for revenue-generating, VC-backed companies.
- Ticket: USD 500 K – USD 50 M
- Stage: Post-Series A
- Time to close: 2–4 months
Explore venture debt
Dilutive
Equity
Selling ownership in exchange for capital — the dominant instrument for African climate startups raising growth capital.
- Ticket: USD 50 K – USD 50 M+
- Stage: Pre-seed → Series C
- Time to close: 4–9 months
Explore equity
At a glance
| Grants | Venture Debt | Equity | |
|---|---|---|---|
| Dilutive? | No | No (some warrants) | Yes |
| Repayment | None | Required + interest | None (exit only) |
| Best stage | Idea → Series A | Post-Series A | Pre-seed → Series C |
| Speed | Slow (3–9 mo) | Medium (2–4 mo) | Slow (4–9 mo) |
| Cost of capital | Reporting burden | Interest + warrants | Loss of ownership |
| Best for | R&D, pilots, impact | Runway extension | Growth & scale |
Many African climate startups blend all three — grants for R&D, equity for scale, venture debt for runway extension.
Ask the TerraBridge AI
Help me pick between grants, equity and venture debt for my stage.