African Startups - Afrikan Heroes

$11M EPF Tech Fund Opens to African Startups

January 24, 2024

Empire Partner Foundation’s (EPF) Tech Fund, led by CEO Jacqueline Govender, has announced the launch of an $11 million (R200 million) Exchange-Traded Fund (ETF) aimed at fostering innovation and supporting young entrepreneurs across Africa. The fund, which initially focused on South Africa, is now expanding its reach to identify and invest in high-growth digital startups addressing critical challenges in various sectors.

In an exclusive interview with ITWeb Africa, Jacqueline Govender emphasized the fund’s commitment to actively engaging with portfolio firms and potential investors. The EPF Tech Fund aims to tackle difficulties in areas such as accommodation, education, financial inclusion, rural and community development. Govender stated, “We’re now also expanding our geographic reach beyond South Africa.”

The expansion comes at a crucial time for African startups facing a funding freeze, as reported by global research firm Infomineo. Startups in Africa received $3.4 billion in funding in 2023, marking a 32% decline from the over $5 billion recorded in 2022, with equity funding experiencing a significant 60% reduction.

To address the funding challenges faced by entrepreneurs in Africa, the EPF Tech Fund is raising an additional $4.2 million (R80 million). Govender revealed that this capital injection will specifically target students and graduates developing technology solutions with the potential for a significant impact.

To be eligible for support from the EPF Tech Fund, startups must have locally built digital solutions, be led by young people, and demonstrate scalability across multiple African countries. Govender emphasized that artificial intelligence (AI) is a key focus for the fund, stating, “Every portfolio firm must achieve the basic criteria of adopting AI into its operations.”

“We see enormous potential in AI-powered solutions that address social concerns, such as education, climate change, unemployment, poverty, and access to healthcare,” Govender added. The EPF Tech Fund is actively seeking firms that utilize AI for sustainable livelihoods, financial inclusion tools, and data-driven healthcare and environmental, social, and governance (ESG) systems.

In explaining the genesis of the EPF Tech Fund, Govender highlighted the identification of a gap in the venture capital market. The fund was initially created to support breakthrough tech businesses solving social concerns across the African continent. Investors in the fund are organizations dedicated to “future proofing Africa” by investing in youth-led technology solutions that can scale across the continent.

Unlike traditional venture capitalists, the EPF Tech Fund evaluates firms not only based on financial returns but also on their ability to provide verifiable social and environmental benefits. Jacqueline Govender stressed, “Beyond a sustainable business, we look at how a venture improves people’s lives and connects with our impact areas.”

The fund supports its portfolio companies with mentorship, market access, and impact measurement tools. EPF Tech Fund’s investments typically range from R5 million to R20 million, with a focus on angel, pre-seed, and seed stages. Govender concluded, “Our main points are effect, purpose, and possibility. We believe in developing promising ideas in their early phases and guiding them through the key early growth phase.”

EPF Fund EPF Fund

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

African Development Bank Invests $10.5 Million in Seedstars Africa Ventures to Boost Innovation and Economic Growth

January 18, 2024

The African Development Bank (AfDB) has taken a significant step in supporting the growth of innovative African businesses by agreeing to invest USD 10.50 million in Seedstars Africa Ventures S.L.P. (SAV), a venture capital fund targeting high-potential companies across Sub-Saharan Africa.

In a decision reached by the AfDB’s Board of Directors on Wednesday, the bank will contribute USD 7 million from its ordinary resources and an additional USD 3.5 million from the European Union Boost Africa programme. This strategic equity investment is aimed at enabling Seedstars Africa Ventures to expand its footprint, raise funds, and attract further investments for innovative startups with substantial growth potential.

Seedstars Africa Ventures is an early-stage venture capital fund with a focus on high-growth companies operating in Sub-Saharan Africa. The fund, with a capital of USD 75 million, specifically targets the startup and launch phases of businesses addressing key market constraints, particularly in French-speaking countries such as Senegal, Côte d’Ivoire, Benin, and Cameroon, as well as in Ghana, Uganda, and Tanzania.

The fund’s investment strategy aligns with its emphasis on financial inclusion and technology adoption in various sectors, including fintech, insurtech, retail sales, logistics platforms, health technologies, pre-paid off-grid energy, and technology adoption in the food-processing industry and value chains.

Seedstars Africa Ventures plans to make initial investments around the EUR 250,000 mark, followed by additional capital injections of €5 million to support the growth of the selected businesses. The fund estimates that this initiative will contribute to the creation of 9,000 full-time jobs, with 50% of them designated for women, thereby having a significant economic impact.

This move is in line with the objectives of the Boost Africa program, which seeks to invest in innovative startups with robust growth potential and positive social impact. Additionally, it supports the African Development Bank’s High 5 priorities by fostering entrepreneurship, encouraging investments, and promoting economic growth with a focus on critical sectors such as agriculture, health, industrialization, and off-grid energy.

By strengthening regional integration and improving the lives of people in Africa, these investments are poised to play a crucial role in achieving sustainable development goals, further solidifying the African Development Bank’s commitment to reducing poverty through entrepreneurship and investment in key sectors.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Emerald Africa Makes Two New Investments in East African Startups

December 12, 2023

Emerald Africa Financing Facility, a pioneering player in supporting digital innovation and inclusive finance across sub-Saharan Africa, has recently announced two strategic investments in East African startups — Patasente and Sevi. These investments underscore Emerald Africa’s commitment to fostering economic growth, particularly in the rural SME sector.

Patasente: Transforming Agricultural Value Chains

In a bid to bolster the tech-enabled procurement, payments, and factoring platform, Patasente, Emerald Africa Financing Facility has joined forces with the Ugandan startup. Patasente, founded with a vision to revolutionize the Ugandan agriculture value chain, facilitates seamless transactions between sellers and buyers, fostering favorable payment terms.

Emerald Africa expresses its delight in contributing to Patasente’s growth trajectory, emphasizing the importance of supporting SMEs, farmers, aggregators, and processors within the Ugandan agricultural ecosystem. This strategic investment is aligned with Emerald Africa’s overarching goal of promoting digital innovation and inclusive finance in rural areas.

Sevi: Bridging Financial Gaps in Buy Now Pay Later (BNPL) Space

In its second strategic move, Emerald Africa Financing Facility has invested in Sevi, an innovative B2B platform operating in the Buy Now Pay Later (BNPL) space. Sevi specializes in supply chain financing, providing a lifeline to MSME buyers and sellers by facilitating quick and convenient credit for stock purchases.

Sevi’s impact extends beyond urban centers, with approximately 30% of its current end customers situated in rural areas. Emerald Africa is particularly thrilled about the potential of Sevi, considering its focus on enrolling rural/agri anchor partners. This investment reflects Emerald Africa’s commitment to acting as a crucial bridge for startups in the agri/rural fintech space, propelling them towards future funding rounds and sustained success.

Selection Criteria and Invitation to Innovators

The Emerald Africa Financing Facility, led by Alex Simuyandi, has outlined specific criteria for potential investments. The facility actively seeks tech-enabled digital ventures with a rural or agricultural focus, providing working capital or cash flow financing to SMEs at the pre-Seed/Seed stage, with funding up to $250k. These ventures must showcase a minimum viable product, maintain a positive gross lending margin, and demonstrate a credible pathway to scale. Notably, the experience and insight of the management team into the sector are considered crucial factors in the selection process.

Interested innovators who meet these criteria are invited to explore more and apply on the Emerald Africa website at www.emeraldafrica.tech.

Emerald Africa startups

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

African Fintech Bujeti Raises $2M to Disrupt Expense Management Across Key Industries

December 8, 2023

African corporate cards and spend management platform, Bujeti, recently secured $2 million in seed funding from a consortium of investors led by Y Combinator. Other contributors to this capital infusion include Entrée Capital, Voltron Capital, Unpopular VC, Kima Ventures, Dropbox co-founder Arash Ferdowsi, Alan Rutledge, Tristan Walker of Heirloom VC, and Mono CEO Abdul Hassan. The startup, founded in April 2022 by Cossi Achille Arouko and Samy Chiba, caters to businesses in sectors such as healthcare, logistics, agriculture, and construction.

Bujeti’s core offering involves providing corporate cards to businesses and streamlining spending processes for employees and contractors. The platform empowers businesses to control and manage expenses effectively through features like spending limits, restrictions, and approval flows for different stakeholders in the business chain, from executives to staff, contractors, and vendors. The recent investment of $2 million is expected to fuel Bujeti’s growth, expand its market presence, and enhance its offerings, including the introduction of credit lines for SMBs and the development of new products tailored for enterprises.

Why The Investors Invested

Tapping into Untapped Potential

Investors are drawn to Bujeti’s potential to tap into the untapped market of African businesses looking for efficient spend management solutions. The startup’s ability to provide corporate cards while maintaining control over spending aligns with the growing demand for tailored financial tools in regions where traditional banking processes may fall short. This represents an opportunity for investors to be part of a transformative solution in an underserved market.

Recognition of Bujeti’s Unique Value Proposition

The decision to invest in Bujeti is grounded in the recognition of its unique value proposition. By combining expense management and corporate card functionalities, Bujeti differentiates itself from competitors in the African market. Investors understand that this dual offering, coupled with superior automation features and multi-entity management capabilities, positions Bujeti as a comprehensive solution provider in the corporate financial management space.

Founder Expertise and Vision

Investors critically evaluate the leadership behind a startup, and in the case of Bujeti, the founders’ backgrounds contribute to the investment decision. Cossi Achille Arouko and Samy Chiba’s prior experiences in roles relevant to financial technology and their strategic pivot from a consumer-focused platform to one targeting businesses showcase adaptability and insight. Investors are likely betting on the founders’ capability to execute their vision effectively.

Future-Ready Features and Expansion Plans

The investors’ confidence is bolstered by Bujeti’s forward-thinking approach, as evident in its planned features like introducing credit lines for SMBs and developing products for enterprises. The active pursuit of a multicurrency feature positions Bujeti for international expansion, aligning with the investors’ interest in long-term growth and scalability beyond the African market.

Positive Early Traction and User Adoption

Bujeti’s onboarding of nearly 1,000 businesses in a short period underscores its early traction and user adoption. This tangible progress suggests that Bujeti’s value proposition resonates with businesses in various sectors, reaffirming investors’ belief in the startup’s market fit and potential for widespread adoption.

A Look At Bujeti

Founded in April 2022, Bujeti is a fintech startup led by founder and CEO Cossi Achille Arouko and COO Samy Chiba. Both founders dedicated their full-time efforts to Bujeti after initiating the development of a Minimum Viable Product (MVP) while in their previous roles. Arouko, who previously worked as the tech lead of Paystack’s commerce, subscriptions, and invoices team, conceived the idea for Bujeti during Paystack’s consideration of releasing an API for card issuance.

Bujeti’s initial vision as a business-to-consumer platform shifted to servicing businesses after recognizing the market need for expense management in sectors like healthcare, logistics, agriculture, and construction. The platform allows companies to issue corporate cards to their employees, streamlining spending processes and addressing challenges associated with low card penetration in traditional businesses.

The startup has gained traction, onboarding nearly 1,000 businesses across Africa in the last eight weeks, with a focus on SMBs and startups such as Mono, Spleet, and Eden Life. Bujeti aims to reach ₦200 million (~$200,000) in processed transactions soon. Noteworthy differentiators include offering both expense management and corporate card functionalities, superior automation features, and multi-entity management capabilities. Additionally, Bujeti is actively working on introducing a multicurrency feature, positioning itself for international expansion in the future. The startup’s commitment to addressing a fragmented market and the capability of its founders in both technical and business aspects garnered confidence from investors like Abdul Hassan, co-founder of Mono and OyaPay.

Bujeti Expense management Bujeti Expense management

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

Tracking African Startup Founders Mired in Financial Controversies: Key Factors Common to Them

October 10, 2023

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In the ever-evolving landscape of African startups, a disconcerting pattern has emerged that keeps investors on edge. Scarcely a week goes by without African investors grappling with palpitations, their hearts racing as they navigate the treacherous waters of controversy that have engulfed some of their most promising ventures. Recent events have only heightened these anxieties. The collapse of Dash, a once-promising Ghanaian fintech startup that managed to raise an astonishing $86.1 million, has sent shockwaves reverberating through the African startup ecosystem. However, these unsettling episodes are not isolated anomalies; they are merely ripples in a vast sea of controversy that has afflicted numerous founders across the continent. In this article, we delve deep into the common threads binding these controversial African founders, shedding light on the key factors that have contributed to their downfall.

Founder Experience Not Necessarily a Safeguard:

Perhaps one of the most profound observations stemming from these controversies is the unsettling revelation that founder experience does not necessarily act as an impenetrable bulwark against ethical lapses and financial mismanagement. Contrary to the notion that seasoned entrepreneurs, particularly those with illustrious pedigrees like Y Combinator alumni, would exhibit heightened ethical standards and impeccable financial stewardship, the stark reality paints a markedly different picture. The cases of Dash, Capiter, and Springleap resoundingly attest that even individuals with a decade or more of experience at the helm of their startups can find themselves ensnared in the web of scandal. This challenges the very foundation of the belief that founder experience alone serves as an infallible guarantor of ethical conduct and judicious financial management, raising profound questions about the vetting processes and oversight mechanisms within the startup ecosystem.

Varied Industries and Countries:

Another thought-provoking facet of these controversies is the remarkable diversity of industries and countries implicated. While the embattled companies span an array of sectors, encompassing fintech, e-commerce, advertising, etc., they all share the unfortunate distinction of being ensnared in a maelstrom of controversy. Similarly, these startups hail from disparate African nations, spanning Ghana, Nigeria, South Africa, and Egypt. This expansive geographic and sectoral diversity suggests that the issues at hand are not confined to a specific region or industry niche but rather indicate a more systemic problem entrenched within the overarching African startup ecosystem.

Recent Cases

Dash — Ghana (Fintech):

Dash, conceived in 2019, embarked on a mission to revolutionize cross-border payment solutions for mobile money users and bank accounts across Africa. However, in 2023, the startup’s founder Prince Boakye Boampong faced a barrage of allegations, ranging from exorbitant $50,000 monthly salaries to the alleged diversion of at least $8 million of the company’s funds. These disconcerting revelations ultimately led to the demise of the company and the suspension of its founder. Notably, this founder boasted an extensive background, boasting over a decade of experience in a founder capacity and an illustrious stint as a Y Combinator alumnus. This case serves as a stark reminder that even a founder with a glittering track record can plummet from the heights of adulation to the depths of ignominy.

Capiter — Egypt (E-commerce/FMCG):

Capiter, founded in 2020, set out to disrupt the Egyptian e-commerce and fast-moving consumer goods (FMCG) sectors. Nevertheless, in 2022, the founders found themselves ensnared in allegations of misappropriating funds by investors, allegations they vociferously refuted. The ensuing turbulence culminated in the founder’s ouster by the Board of Directors and the eventual shuttering of the company. This case underscores the vulnerability of startups, even in their nascent stages, to internal disputes that can have cataclysmic ramifications.

Springleap — South Africa (Advertising Agency):

Springleap, established in 2012, stood as an exemplar of advertising prowess in South Africa. The founder, Eran Eyal, possessed a wealth of experience, amassing over a decade at the helm of various ventures and attracting international acclaim. However, in 2018, the New York Attorney General arrested Eyal, accusing him of absconding with $600,000 from investors through fraudulent solicitations. Subsequently, he was found guilty of duping investors out of millions in multiple investment schemes, including a $42.5 million initial coin offering (ICO). In 2020, he was ignominiously deported from the US to Israel. This case lays bare the global reach and devastating consequences of unscrupulous actions by founders.

The Ultimate Price of Founder Compromise: Death of Startups

In all these cases, the breach of trust by the founders had severe consequences for their startups. It led to the loss of trust and confidence among key stakeholders, including investors, employees, and clients. When trust is compromised, it becomes challenging for a startup to secure funding, maintain its operations, and continue to grow. Ultimately, the loss of trust often results in the shutdown of the startup as it becomes untenable to sustain the business under such circumstances.

These cases highlight the critical importance of trust and integrity in the startup ecosystem, and how a founder’s breach of trust can have far-reaching and detrimental effects on the company’s viability and survival.

Finally, the disconcerting trend of African founders embroiled in controversies raises profound questions about the nexus between founder experience, governance structures, and ethical behavior within the startup ecosystem. These case studies serve as cautionary parables for both investors and aspiring entrepreneurs, underscoring the imperative of robust governance, transparency, and ethical rectitude to ensure the enduring vitality of startups across the African continent. Only by grappling with these complex and multifaceted challenges can the African startup ecosystem continue to evolve, attract vital investment, and fulfill its enormous potential.

Find more of these controversies in our recently published article available here.

African founders African founders

From Custos To Gokada, What And How Are The Commonest Internal Conflicts Plaguing Startups In Africa Resolved?

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

African Startups Shine at VivaTech: Waspito, Kubik, and Curacel Win Top Honors

June 19, 2023

From June 14 to 17, the VivaTech technology fair took place in Paris. It was during this event that the AfricaTech Awards were initiated, now in its second edition.

Waspito, Kubik, and Curacel emerged as the winners of the second edition of the AfricaTech Awards, respectively in the categories of healthtech, climate tech, and fintech. The event, held on Thursday, June 15, in Paris, as part of the VivaTech technology fair, in partnership with the International Finance Corporation (IFC), was launched last year to enable startups from the continent to build relationships in order to attract investors.

Waspito, the winner in the healthtech category, is a Cameroonian startup that connects patients with doctors for instant video consultations through its mobile application available on iOS and Android. It was founded in 2020 by Jean Lobé Lobé and has attracted investors such as Orange Ventures and Launch Africa Ventures.

Curacel, the winner in the fintech category, is a Nigerian solution that allows companies to distribute insurance policies and process claims more quickly. Founded in 2019 by Henry Mascot and John Dada, it also has a mobile application available on iOS and Android.

As for Kubik, the winner in the climate tech category, it is a Kenyan startup founded in 2021 by Ndeye Penda Marre. It transforms hard-to-recycle plastic waste into low-carbon building materials.

To recall, during the first edition of the AfricaTech Awards in 2022, the Kenyan Weee Centre (climate tech), the Egyptian Chefaa (healthtech), and the South African Click2sure (fintech) were crowned winners.

Proparco and Digital Africa Support Senegalese Retail-tech Maad with $218K Funding

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Export Marketing Plan Training Boosts African Tech Entrepreneurs’ Place in Global Marketplace

December 31, 2022

Exporting to international markets is a powerful way for African tech startups to increase their company’s bottom line, smooth out seasonal dips, and increase competitiveness. The challenge is how to successfully navigate that process.

A critical part of the work by the International Trade Centre’s NTF V programme is to train African entrepreneurs on how best to conquer the complexities of global marketing and international sales.

In October, the Netherlands Trust Fund V Ghana Tech programme concluded an eight-month Export Marketing Plan training for 18 IT & Business Processing Outsourcing (BPO) companies to sell their services across the world.

“We will be using the training to improve our marketing strategy and growth plan for 2023 and the years ahead,” said Nehemiah Yelu Attigah, founder and CEO of Hatua Tech Ltd. “We are looking to venture into the UK, the Netherlands, and Nigeria as primary markets, and Sierra Leone, Gambia, Kenya and Rwanda as secondary markets,” said Attigah.

Hatua Tech is a Ghanaian business process outsourcing business that helps companies in the service and manufacturing sectors streamline and digitize their processes and manage effectively. Attigah said his company has worked hard to get potential clients to see their value proposition.

Led by expert Fred Janssen and local trainers Paulina Adjei and Emmanuel Kpogo, the training included full day workshops, visits to the companies and online coaching sessions.

“The facilitators and coaches were brutally honest with their feedback,” said Attigah. “It was a refreshing approach. People are not used to being pushed to think deeper,” he said.

The EMP breaks down how companies should identify their internal strengths and weaknesses and determine which international markets they will be able to expand into. Participants were given Export Marketing handbooks to guide them through the training and develop their own tailor-made service offering and export plan.

“This was not a box-ticking exercise, this was hands-on: you were expected to deliver,” said Attigah, adding that his company has become far more strategic in how it looked at markets in terms of product and marketing combinations.

Partners from key institutions that ITC works with, such as Joyce Owusu-Kwarteng from the Ghana Export Promotion Authority, David Gowu from the Institute of ITC Professionals Ghana, and Akosua Annobil, the founder of the Tech in Ghana biannual event, were also brought in to interact directly with the companies.

“The presence of these government agency enablers at the meetings means they now are aware that organizations like ours exist in Ghana,” said Ernest Amartey Otu, Senior Manager, Marketing & Sales at e.Services Africa Ltd., (eSAL) who also took part in the training.

eSAL is a 24-hour business process outsourcing operation serving international and local Ghanaian and international clients in the financial, telecommunication, healthcare, utilities and aviation industries, as well as fast moving consumer goods, sales and marketing.

eSAL is working to reach additional international clients, but is up against established players in Africa in Kenya, South Africa, Morocco and Rwanda, and internationally in the Philippines and India.

“The competition is fierce and comes with a lot of finance muscle. We are a small company trying to survive in those waters,” Otu said. “The Marketing Mix Strategy, which looks at product, place, price, promotion and most importantly planet, was key in how we articulated our value proposition in our 5-year plan,” he said.

Otu is aware that giants like Amazon and Google entering African countries could poach many of the best tech experts, leaving local companies short of qualified workers. But, he notes, these larger corporations would benefit more by partnering with local companies.

While confident as his company was already on the right path to success, Otu said the ITC training helped eSAL better package its offerings.

“After critically analyzing our strengths, weaknesses, opportunities and threats (SWOT), we know we have what it takes to enter the European market, specifically the United Kingdom,” said Otu.

Attigah agreed that training like those provided by NTF V are important for tech companies who need to provide services at global-level standards in order to sustain and grow their businesses.

“This is something we are encouraging and should be repeated in the years to come, it will help a lot of African and Ghanaian businesses to become international in their outlook and delivery,” Attigah added.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

African Tech Startups Raised $2.7bn in First 9 Months of 2022

October 15, 2022

African tech startups raised US$2.7 billion in total funding in the first three quarters of 2022, almost 30 per cent more than the US$2.1 billion banked in the entirety of 2021.

The seventh edition of Disrupt Africa’s annual African Tech Startups Funding Report, released in January, found 564 startups raised a combined US$2,148,517,500 in 2021, a record for a calendar year.

That record had fallen within the first half of 2022, and African tech startups continued to perform strongly from the fundraising perspective in Q3. So far in 2022, 385 startups have raised just shy of US$2.7 billion. This is 28.5 percent more than was raised in the entirety of 2021, meaning 2022 is already comfortably the most successful yet when it comes to investments into space.

“That African startups continue to shatter fundraising records at a time when the global venture capital industry is experiencing a downturn is testament to the resilience of the tech sector on the continent and its status as a greenfield of opportunity,” said Disrupt Africa co-founder Tom Jackson. “Though we expect the overall rate of growth in 2022 to be slower than it was in 2021, the sector is still on a good trajectory.”

As has become the norm, Nigeria is leading the way, with 123 companies having raised a combined US$858 million between January and September. This is still just short of the US$903,680,000 raised by Nigerian ventures in 2021, though that target will surely shortly be beaten given the current rate of investment.

Egypt comes in second, as it did in 2021, though the US$621 million raised by 84 Egyptian startups in 2022 already represents significant growth on last year, when the overall total was US$446 million. Kenya, in third, has seen US$489 million raised by 53 startups, more than US$150 million more than the US$292 million the country raked in across 2021.

South Africa continues to have a relatively disappointing year compared to other members of the “big four”, with US$297 million raised by 44 companies. This still means, however, that the country is on course to better 2021’s total of US$336,405,000.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Digital Africa To Invest In 200 African Startups

June 19, 2022

As part of its 2022–2025 roadmap, Digital Africa will support 200 African startups at different stages of their growth with a wide range of offers at their disposal. Thanks to a joint and sustainable mobilization with Proparco, new investment and support mechanisms are implemented to support tech startups “Made in Africa”.

THE FUND FUZÉ, A NEW FINANCING MODEL ADAPTED FOR START-UPS IN FRENCH SPEAKING AFRICA

Convinced that digital innovations have a uniquely transformative impact across all sectors of the economy and are a driver of change for the continent, Digital Africa will launch the Fuzé fund in September. This model perfectly addresses the concerns of early-stage African tech start-ups, with a tiered funding solution that is conditional on the company’s progress. This approach focuses on the success of entrepreneurs and aims to create the leverage needed to get through the early stages, which are otherwise difficult to achieve without support.

Thanks to this unique mechanism on the continent, African Tech startups whose needs in the seed phase range between €20,000 and €30,000 can now aspire to find funding from Digital Africa, while seeking capital from other investors.

This program FUZE and more globally the rapprochement between Digital Africa and Proparco allows us to offer a unique continuum of financing solutions for African startups, from ideation to scale-up. Proparco has been supporting the financing of African startups for several years, either directly or through support to the venture capital ecosystem, and Digital Africa is strengthening this offer to provide even greater support to startups at the ideation stage.

Stéphan-Eloise Gras, Chief Executive Officer at Digital Africa: “Seed is one of the most exciting but also the most difficult moments of the entrepreneurial journey in Africa. We are joining forces with Proparco to provide concrete solutions at all stages and in all aspects of a start-up’s life. Through technology, African talent can show the world that Made in Africa products and innovations have the potential to become global benchmarks for sustainable growth.”

Françoise Lombard, Chief Executive Officer at Proparco: “By joining Proparco, Digital Africa is strengthening AFD Group’s commitment to entrepreneurship. Our challenge is to offer entrepreneurs comprehensive support at all stages of their growth. With Digital Africa, we are now able to support entrepreneurs from the start-up phase and throughout their growth. This is a unique offer.”

BRIDGE FUND BY DIGITAL AFRICA IS A GREAT SUCCESS

To meet the challenges facing startups today, Digital Africa launched the “Bridge Fund BY Digital Africa” with Proparco, which offers initial financing capacity to “Made In Africa” stratups in the seed phase.
The scheme has been a huge success: 257 applications received from 40 African countries; 11 startups financed for a total of €3.88m in just a few months.

A few examples illustrate Digital Africa’s strategy to multiply its initiatives in order to build a virtuous ecosystem and identify future unicorns.

6.2 million raised by ANKA, an Ivorian e-commerce start-up dedicated to African designers.
31 million in a funding round raised by MAX, a Nigerian sustainable mobility start-up.
28 millions raised by Poa Internet, a Kenyan start-up, successfully raising a total of $36 million to date.

Innovation companies, whose growth has been hampered by the impact of the global health crisis, have been able to draw on this five million euro fund, which addresses their financing issues, strengthens their attractiveness and makes their approach more credible.

This first financing capacity with the help of Digital Africa on tickets ranging from €175,000 to €600,000 consolidates the growth of startups able to raise funds to close their development phase and move on to industrialization. By creating a reassuring environment, Digital Africa accelerates the maturity of startups and strengthens the confidence of their African and global investors, to increase the scale of projects.

Stéphan-Eloise Gras, CEO at Digital Africa : “We designed Bridge fund to provide responsiveness to African start-ups’ needs in the time of a global pandemic. But we also saw its utility beyond. Our intuition was that more can be done to address the funding gap, especially with debt mechanisms. There is an opportunity now for Digital Africa and its European partners to scale-up and accelerate innovation “made in Africa”

Françoise Lombard, CEO at Proparco: “More than a year and a half after its launch, the success of the Bridge Fund confirms that it concretely meets the needs of entrepreneurs on the African continent. Thanks to the complementary approach proposed by Digital Africa and Proparco, Bridge Fund is a real tool for accelerating the growth of startups and responding to the increased financing difficulties linked to the COVID-19 crisis. With Digital Africa, we share the same ambition: to be alongside entrepreneurs!”

TRAINING IN DIGITAL SKILLS ACCESSIBLE TO ALL TO IMPROVE THE EMPLOYMENT OF START-UPS IN FRENCH AND ENGLISH-SPEAKING AFRICA

Currently, 280 young people from the continent benefit from training provided via a network of local partners — coding schools and bootcamp present in 11 countries — entirely financed by Digital Africa and its partners, for the professions of data analyst, IT developer and digital marketing.

The 11,000 applications received demonstrate the appetite of all young people for the tech industry. Digital Africa has been fully involved in meeting these expectations and will continue to be involved in meeting the requirements of this new economy, which is a great opportunity for African start-ups.

Stéphan-Eloise Gras, Chief executive at Digital Africa : “Tech Made in Africa is not only about money, it is also and above all about the skills needed to help create new solutions to the problems of citizens on the continent, and elsewhere. Thanks to Talent4Startups, we are showing our ability to listen to the needs of African tech entrepreneurs and to respond to them via a network of partners structured and united around the skills needs of the ecosystem.”

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh

Africa-focused Investor Accelerator, Dream VC, Accepting New Applications

March 8, 2022

Dream VC Co-Founders Mark Kleyner and Cindy Ai are active ecosystem builders, advisors and investors in African startup

After launching a small scale programme in 2021 Dream VC, an Africa-focused investor accelerator and community-driven educational platform providing rigorous remote programs centred specifically around venture capital across Africa’s startup ecosystems, is now back at a much larger scale, and with success to show for their efforts.

More than 90% of the fellows who graduated from the inaugural programme went on break into venture capital; with some joining new and established firms such as Ajim Capital, Akribos Capital, LoftyInc Wennovate, Oui Capital, and Lateral Capital — while others are writing checks as angel investors or forming their own syndicates and funds in emerging ecosystems like Mozambique, Côte D’Ivoire, Rwanda, and others.

Now, Dream VC is expanding their 2022 programs in order to engage, educate, and upskill a far bigger pool of untapped investor potential, with the goal of being “Africa’s Go-To Launchpad For Aspiring Investors.”

This year, they’re offering two programs, each with over 500 hours of curriculum and more than treble the amount of time fellows spend with the Dream VC team.

The 2022 programs are set to run from June to September (for the “Launch into Venture Capital”) and from June to October (for the “Investor Accelerator”) programs. The first is a foundational VC fellowship for young working professionals keen on pipelining into entry-level positions in VC or other investment firms. At the same time, the latter is geared towards experienced professionals [with a significant operator, entrepreneurial, or advisory background] who have the capital and network to pivot into an ecosystem-building VC career.

investor Africa Dream VC — ***Dream VC Co-Founders Mark Kleyner and Cindy Ai are active ecosystem builders, advisors and investors in African startups. Source:*** **Dream VC**.

What Dream VC Offers

The last few years have seen exponential growth in entrepreneurial adoption. This is only further enabled by rapid increases in the publicity of startups and startup founders — but the investment world has dragged behind. Even as funding has increased, most of this has been concentrated in select deals (48% of total funding for startups in Africa went to just 12 companies), and over 50% of investors are international.

“People are saying entrepreneurship can help to catapult countries across the continent into digital transformation, but this simply cannot happen without an equivalent level of support from the private capital sector,” adds Mark Kleyner, Dream VC’s Co-Founder and programme Director.

This is where Dream VC see themselves plugging in, teaching fellows across both programs with an immersive 0 to 100 knowledge acceleration about the VC space, covering everything from Deal Sourcing and Due Diligence to the varied ways VCs can add value and support companies throughout their investment, exploring complicated topics like Syndication, Angel and VC investments and even the legalities of setting up VC Funds or Angel Groups to invest in African startups.

While international attention is now focused on African startups, there are currently few support structures in place for prospective local investors and chances for working professionals to enter into venture capital on the continent. Dream VC exists to alter this, with ambitious goals to empower the next generation of aspiring investors by creating the networks, educational infrastructure, and environment necessary for businesses to grow and add maximum value across different African startup ecosystems.

“At the end of the day, working in countries like Nigeria or Kenya, founders across the continent often are faced with major obstacles — and there is still a lot that must change about perceptions of investing or building startups in Africa. Investors need to be much more hands-on and add a lot more value than just money to build sustainable, scalable businesses. And this can’t be done without including and enabling local leaders to be more active in the VC space,” remarks Cindy Ai, the other Co-Founder and programme Director of Dream VC. “We aren’t just accelerating a new wave of check-writers. We are catalysing the next generation of African ecosystem builders.”

***Launch into VC Fellow Learning Areas. Source:*** **https://www.dream-vc.com/2022-launch-into-vc**

When And How To Apply

Applications for both programs go live on March 8th and will be processed on a rolling basis until the final deadline on May 1st 2022, at 11:59 pm GMT.

The Launch into Venture Capital Fellowship specifically also has an Early Bird Deadline on April 1st, 2022, at 11:59 pm GMT in addition to the final deadline on May 1st.

Interested applicants can find more about both programme applications here.

The programs are expected to be extremely competitive, so prospective fellows are highly encouraged to apply early.

Although Dream VC’s core programs are paid, several generous scholarships are available, so highly motivated applicants in need of financial support are still strongly encouraged to apply.

Dream VC accelerator Dream VC accelerator

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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