Good news for African startups. Digital Africa has successfully increased its fund size from $76 million to $152 million for investment in African startups. This increase came after a meeting between Kizito Okechukwu, the new vice-president of Digital Africa and various stakeholders in Paris.
“Digital Africa plans to launch its new strategy towards the end of the year and will work closely with various key partners in the African ecosystem to ensure that start-ups have the capacity to start, grow and become successful global brands, ” said Okechukwu.
Here Is What You Need To Know
- In the French capital, Okechukwu was able to meet with the French minister in charge of ICT and Remy Rioux, the president of the French Development Agency. The latter is also at the initiative of Digital Africa.
- With this sum, Digital Africa hopes to accomplish its mission which includes the development of skills, knowledge communities, the financing of projects and businesses (debt and equity), as well as to facilitate the emergence of a regulatory environment conducive to innovation in Africa, technical assistance, and ease market access for high impact African startups.
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A Look At The Digital Africa Venture Capital Fund
Set up late 2019, the Digital Africa Venture Capital Fund aims to provide initial funding to Africa’s digital startups. Between 10 to 20 fund managers are members of the Digital Africa Investment Club.
The fund targets:
Digital startups directly
via 4 programs managed by Greentec Africa Foundation, African Business Angel Network, Investisseurs & Partenaires and MercyCorps Ventures. Eligibility criteria include:
- Companies registered and based in Africa.
- Companies offering an innovative digital product or service that contributes to one or more Sustainable Development Objectives.
- Companies meeting the needs of an initial customer base and potential partners.
- Presentation of a business model outlining growth prospects.
- Employment of an experienced team with expertise in various fields.
Incubators and accelerators
via 2 programs managed by Bond’Innov and AfriLabs.
€15 million has also been allocated to Africa’s early stage digital startups through a network of partners in 45 countries across Africa. Finance ranging from €25 000 and €300 000 is available in the form of loans, interest-free loans, subsidies, etc., depending on the project and circumstances.
How To Access The Fund
Digital Africa venture fund is currently managed by the following venture capital firms and angel investment networks: Greentec Africa Foundation, African Business Angel Network, Investisseurs & Partenaires and MercyCorps Ventures, including through incubation programs managed by Bond’Innov and AfriLabs. All requests for funding may therefore be directed to them.
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