African Startups - Afrikan Heroes

A New $50 million Reefknot Investments Fund For logistics and Supply Chain Startups

September 7, 2019

Logistics and supply chain startups in Africa have a chance to pitch to Reefknot Investments for their funding. Reefknot Investments, a joint venture between Temasek, Singapore’s sovereign fund, and global logistics company Kuehne + Nagel, has announced the launch of a $50 million fund for logistics and supply chain startups. The firm is based in Singapore, but will look for companies around the world that are raising their Series A or B rounds.

Marc Dragon, managing director Reefknot.

Here Is All You Need To Know

Reefknot Investments is especially interested in companies that are using AI or deep mind tech, digital logistics and trade finance to solve problems that range from analyzing supply chain data and making forecasts to managing the risk of financing trade transactions.
Managing director Marc Dragon said Reefknot will serve as a strategic investor in its portfolio companies, providing them with connections to partners that include EDBI, SGInnovate, Atlantic Bridge, Vertex Ventures, PSA unBoXed, Unilever Foundry and NUS Enterprise, in addition to Temasek and Kuehne + Nagel .
Dragon, a veteran of the supply chain and logistics industry, says Reefknot plans to invest in about six to eight startups. Data from Gartner shows that about half of global supply chain companies will use AI, advanced analytics or the Internet of Things in their operations by 2023.

Read Also: African Renewable Energy Startups Get A New Fund

“There is a high level of expectation from vendors that because of technology, there will be new methods to do analytics and planning, and greater visibility in terms of information and product, materials and goods flowing throughout the supply chain,” says Dragon.

Reefknot will also establish a think tank that will work with industry experts and government organizations on forums, research and exploring new logistics and supply chain business models that startups can bring into fruition.

To get in touch with managers of the fund visit Reefknot Investments website

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

5 African Startups Secure $25k Funding Each Via The Baobab Network Accelerator

August 6, 2019

Five African startups have each raised US$25,000 in funding from The Baobab Network’s accelerator, which provides a platform for scaling and securing further investment.

A Look At The Funded Startups

The funded startups include Ethiopian ed-tech startup Beblocky, Zimbabwean AI-based health platform Dr. Cadx, Kenyan insurtech startup Kakbima, Nigerian payments platform Gladepay, and Ghanaian digital bank Pennysmart.
Each startup has secured US$25,000 in funding in return for a 10 percent equity stake, as well as access to a tailor-made accelerator programme.
The Baobab Network sends its ventures team to each company’s home city for a weeklong sprint prior to unlocking the funds, and then assigns a venture partner for a period of 24 months to help each startup speed its growth and become market and investor-ready.
Founders of those startups will also gain access to an investor network of over 100 venture capital and impact funds, while a network of global partners is on hand to offer their assistance and explore early commercial partnerships, such as Amazon Web Services, Accenture and Standard Chartered Ventures. Companies will be helped through a seed round within 12 months.

A Look At The Baobab Network Accelerator

Since launching in 2016, The Baobab Network has worked with dozens of startups from across the continent.

The Baobab Network focuses on early-stage startups using tech to solve big market problems.

“We are usually the first money into a business, specialising in pre-seed companies that have shown our team potential for huge scale,” said Baobab co-founder Tom Fairburn.

Fairburn said the accelerator, which accepts startups on a rolling basis, had received over 600 applicants from startups in more than 25 African countries so far this year.

“We hope to do three more deals this year, and support a further 20 companies in 2020,” he said. “The big vision is to have 100 companies in our portfolio by 2023.’’

Funding comes from a mixture of revenue from its data business Baobab Insights and equity funding the company has received over the last three years, which totals over US$1.2 million.

Although Baobab does not prefer certain startups over others, the company’s focus traditionally has been on fast-growing sectors such as e-health, ed-tech, and fintech.

Fairburn said The Baobab Network works exclusively with local founders who are building businesses in markets where they are experts.

“We are currently fundraising to further increase our support for tech entrepreneurs in Africa,” Fairburn said.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

NEW REPORT: Funds Raised By African Tech Startups in 2018 Surpass Some Countries GDP

May 18, 2019

Tech startups in Africa are having a field day. In fact, the amount raised through funding, by tech startups in Africa is two and a half times larger than the GDP of Sao Tome and Principe, an island nation off the coast of Central Africa.

The Afrobytes and Viva Tech conferences in Paris this week are providing an opportunity to analyse the growth of tech startups in Africa. Fund-raising is one of the key growth areas. Partech Africa, a venture capital firm, hinted that 146 startups in 19 African countries raised $1.16 billion for African digital entrepreneurs in 2018.

Image result for Tech funding Africa 2018

Key Analysis

Kenya, Nigeria and South Africa in all saw a 78% of the total funding, with Egypt close behind.

French speaking countries are not way behind:Senegal is the leading tech ecosystem among them with a total of $22 million raised in four deals so far.

Forty Senegalese startups last November secured a total of $2 million in government funding alone.

Side by side with their Anglophone peers, African Francophone countries, Partech noted, operate in smaller markets, and lack capital and mentors.

With African population expected to reach 1.4 billion by 2021, and with over 1 billion smartphones on the continent, Africa looks like the a promising center for the world’s leading high-tech and telecom companies.

What Speakers At Both Conferences Said

Marieme Diop, a venture capital investor at Orange Digital Ventures, said that ‘unfortunately in Francophone Africa, it is not in our DNA. People who succeed in business or in electing positions do not necessarily reach back to help their peers to show them how to be successful. In the Anglophone world, it is a must for anyone who wants to start something: seeking advice. So the gap is not only financial’ between the regions. Africa is seen by many as the next frontier for venture capital, with its booming population and mobile-first economy. That’s why Google, Facebook and PayPal participated in Paris in Afrobytes 2019.’

We do not want people globally to see African high-tech as an exotic stuff,’ said Afrobytes CEO Ammin Youssouf. ‘We want to be heard and talk about AI, blockchain, what is happening in Silicon Valley, because it has an impact on us. We already have brilliant minds in Africa, especially in tech, to have those conversations.’Unlike the global trend, where men dominate the high-tech industry, women are leading the movement in Africa.’

Women Are Becoming A Large Part of the Tech Revolution

Ben White, chief executive officer of venture capital platform VC4Africa, who has been supporting startups on the continent for more than 10 years analysed this situation:

‘‘Actually, what we see in the statistics is that women’s involvement and participation on in the African continent is much higher than what you would find in New York, for example, or San Francisco. I think it is an advantage. It also means having women investors who are very sensitive to gender-related questions and can also ensure that the system we are building is inclusive.’’

Can Government Help Tech Startups By Way Of Funding?

Government in startups? That is a two-way risk:

Kenza Lahlou, co-founder and managing partner at Outlierz Ventures, said the public sector ‘should not invest [in startups].To him, governments simply don’t have the skills needed to pick good investments. However, government can bring support by way of legislation, and policy support.

Morocco, for instance, already has InnovInvest, which it is doing in partnership with the World Bank to invest in local venture capitalist funds, to lower the risk for local funds.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

US’ Private Equity Firm, LeapFrog, in Search of African Healthcare and Financial Services Startups To Invest Over $700 million In

May 14, 2019

Private equity firm LeapFrog Investments which has raised $700 million is looking for high impact projects such as healthcare and financial services to invest in, including startups.

Image result for Leapfrog Investment Private Equity latest revenue Chart

Where The Funds Would Go To

The fund is focused on African and Asian economies.

Kenya’s pharmaceutical chain Goodlife is one of the beneficiaries of the fund. Other companies LeapFrog Investments has invested in are: WorldRemit, the money transfer services provider and India’s SME focused financial institution, NeoGrowth.

Leapfrog will put in equity investments of between $25 million and $30 million in emerging economies such as Kenya, Ghana, Nigeria, South Africa, India, Indonesia, and Sri Lanka.

Leapfrog aimed to raise $600 million from the fund drive but exceeded its target by $100 million.

In the first quarter of 2019, East African economies benefited from Private Equity investments worth $110.9 million as per a report by I&M Burbidge Capital.

Sixty per cent of the funds went into the Financial services sector with notable investments like the $12,000 capital injection into Sidian Bank by Danish firm Investment Fund for Developing Countries (IFU).
The fund’s founder and CEO, the South African Andrew Kuper said:

“It is time for a better kind of capitalism. LeapFrog was founded on a philosophy of profit with purpose. That has proved a winning strategy, driving strong growth and returns while changing tens of millions of lives.”

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.