Google through its newly launched Africa Investment Fund wants to invest up to $50 million in African early- and growth-stage startups, stepping up efforts to help more businesses on the continent. Google disclosed its plans yesterday at a virtual event, with CEO Sundar Pichai announcing the company’s aim to invest $1 billion in tech-led initiatives in Africa over the next five years.

“There is a significant gap in terms of access to funding. Some groups do not have access to funding as much as other groups. We’ve seen that with black and female-founded startups. And our effort with the Black Founders Fund is to help close that gap to some extent,” said Nitin Gajria, Google’s managing director for Sub-Saharan Africa, explaining why the internet behemoth created the fund.

Which Startups Would Google Invest In? 

• According to the Africa Investment Fund’s investment thesis, the managing director stated that the fund has no preference for specific sectors or countries. He goes on to say that the fund could work in a similar way to Google’s Startup Accelerator program.

• Apart from Nigeria, Kenya, South Africa, and Egypt, the accelerator has made a point of accepting applications from startups in under-funded and overlooked regions, including Algeria, Botswana, Cameroon, Ivory Coast, Ethiopia, Ghana, Morocco, Rwanda, Senegal, Tanzania, Tunisia, Uganda and Zimbabwe.

“We are not restricting ourselves to certain verticals. We are focusing on investments where we believe that Google could add value,” Gajria said. “If there are founders building interesting products solving real challenges in Africa, that would fall squarely within our investment thesis.”

• Unlike Google’s other programs currently running on the continent, Google’s $50 million Africa Investment Fund will make equity investments in high-growth African startups in exchange for varied check amounts.

• Google said the new fund will operate in the form of a venture capital. 

What Startups Stand To Gain From The New Fund Apart From Funding

Startups who receive funding from the Google Africa Investment Fund will have access to Google’s people, network, and technologies, according to the company.

Read also Google Searches For African Gaming Startups With A New $30m Fund

How To Pitch Google’s Africa Investment Fund

Although the Fund is yet to be formally operational and make its first set of investments, Gajria said Google is at “…advanced stages of various discussions,” with no specifics about when the fund would start to operate. 

“I’m hopeful we can come back with more information soon,” Gajria said. 

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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