African startups have a new fund to pitch to. Johannesburg South Exchange listed technology investment group, Ayo Technology Solutions has launched a $13 million fund aimed at African startups. Ayo, which is currently at the centre of a controversy around a $275 million transaction from the Public Investment Corporation (PIC), made the announcement in a statement recently. Ayo has said that there is nothing untoward about the PIC transaction.
Here Is All You Need To Know
- It follows the announcement of the launch of the fund — dubbed the Technology Innovation Fund — at last night’s Fast Company SA Most Innovative Companies Awards evening, by AYO’s chairman Wallace Mgoqi and the Ayo Technology and Innovation Fund’s head of talent Snow Mokgalabone.
- Mokgalabone and Mgoqi revealed at the awards evening that the $13 million would be an annual amount and that it would be allocated to qualifying companies, organisations and entrepreneurs to help scale their businesses.
Ayo ’s Technology Innovation Fund would have $13 million to annually invest in equity stakes in startups
- The fund says it will make equity investments in businesses it identifies for funding.
- Ayo said in the earlier statement that of the $13 million, $6.4 million would be allocated to South African companies of which, 50% will be geared to specifically supporting black-owned startups.
- The remaining $6.4 million will go to help grow companies founded and operated on the African continent beyond South Africa’s borders.
- Ayo also stressed that the fund is aimed at second round funding opportunities for companies that have a proof of concept and that are ready to scale.
Read also: New Report Discovers 9 “must-have” Milestones For Young Startups Looking For Funding
How Startups Can Access The Fund
- Ayo said applications would be accepted by its website from today, adding that strict criteria and appropriate due diligence measures would be followed in assessing applications.
- It said Ayo will also use its stable of companies to offer beneficiaries a variety of opportunities for self and business acceleration, through access to professionals, services and marketplaces within the Group.
“Investee companies will also be in a position to offer their own skills and support to companies within the greater Ayo group,” it said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com