A new fund for African startups is here! Digital Africa and Proparco have officially launched the Bridge Fund. The fund is a bridge investment fund initiated to help African startups continue their development in the face of the hard-to-overcome challenges brought on by the current pandemic.
“We believe in this new fund which is a very innovative financial tool although it is still experimental for some players. It will be deployed by Proparco and we are delighted to launch it, ”said Stephan-Eloïse Gras, Executive Director of Digital Africa. The Bridge Fund will be used for co-investment, lending and fundraising.
Here Is What You Need To Know
- The fund represents 5 million euros ($6.5 million) to invest in young African startups.
- They will receive tickets worth between 200,000 and 600,000 euros. This is done in a quick and easy process, which includes an evaluation of candidates in less than two months.
- The investors of the Bridge fund are also subject to the condition: to be known by Proparco and to have already invested a minimum of 50 million in two African startups.
- To be eligible for the Bridge Fund, innovative tech companies must prove that they have been in existence for at least 18 months and have already received funds from an investor or a recognized structure. They will also have to achieve 75% of their turnover, a minimum of 200,000 euros, on the continent or have at least half of their teams work there.
- The startups targeted are those operating in sectors such as agriculture, energy, education, health, financial inclusion, logistics, green mobility, among others.
“In addition, the targeted companies must have already demonstrated that their business model works and have successfully gone through a first round of fundraising. The approach we have chosen therefore really consists in supporting growth, or, in other terms, scaling up projects” explained Johann Choux, Head of Venture Capital Investments at Proparco, during the presentation.
Digital Africa Bridge Fund
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How To Apply To The Fund
Being fully aware of the difficulties confronting high-potential startups, Digital Africa and Proparco have been working on a simplified and rapid process, both for reviewing applications, which will take no more than 8 weeks, and for formalizing contracts and allocating funds. The first step is a questionnaire to enable interested companies to check whether they are eligible or not, which is available on the website:
https://bridge.digital-africa.co (While on the site, Click on “EN”, if you are English-speaking; or “FR” if you are French-speaking.)
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