Startup funds - Afrikan Heroes

France’s $152m Fund For African Startups Under Severe Crisis, Could Disappear Today

February 18, 2021

In October 2020, Digital Africa Venture Capital Fund, a venture capital fund set up for African startups made up of about 20 fund managers who are members of the Digital Africa Investment Club, announced it had increased its fund size from $76 million to $152 million. However, barring any last minute changes, the fund sponsored by French President Emmanuel Macron could end today, February 18, according to reports by online media publication Jeune Afrique. The Board of Directors of the association is expected to meet in an extraordinary general meeting from today for the purpose of its dissolution, the source said.

A Struggle For Funds Between English-speaking And French-speaking Startup Ecosystems?

According to the source, problem started as a result of rivalries between members of the structure. One of the reasons for the discord, it said, is the direction of funds under the arrangement, as the new interim presidency has shifted to On-Sloane, a large investment fund based in Johannesburg, South Africa. This move, the source said, must not have appealed to the French-speaking members who risk seeing priority given to startups of South African or even Nigerian origin.

No matter the turn the story takes, a fact has been established: that Digital Africa may not remain the same again. Rebecca Enonchong, a Cameroonian tech entrepreneur, tells the story further via her Twitter handle.

Cracks started to appear when the organization's first executive was hired, @stephaneloise. It wasn't so much the person but the manner. The board received an email announcing her hire. Never were we consulted or made part of the process.
— Rebecca Enonchong (@africatechie) February 16, 2021

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.

The fund also targets incubators and accelerators via 2 programs managed by Bond’Innov and AfriLabs.

The fund is led by South African Kizito Okechukwu who is its Vice-President, and current interim president, after the resignation last July of Franco-Senegalese-Malian, Karim Sy, who is the founder of Jokkolabs.

While it lasted, Digital Africa had a bright future to support Emmanuel Macron’s new-deal project for Africa’s digital economy. The French Development Agency (AFD), which is a member of it, even managed to mobilize some 130 million euros for equity investments in African startups.

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

From 2021, Startups In Cameroon Will Benefit From Tax Exemptions For Up To 5 Years

November 7, 2020

Cameroon, arguably, is one of the most active startup ecosystems in Central Africa. With a population of 25 million, 23% of which is connected to the internet, the country is poised to become a regional hub for startups, albeit its controversial political regime. Under the draft 2021 Finance Law project, startups in the central African country, especially those in the field of information and communication technologies (ICT), would benefit from a range of tax incentives.

Here Is What You Need To Know

In the incubation phase, which cannot exceed 5 years, these startups will benefit from an exemption from all taxes, duties, taxes and fees, with the exception of social contributions.
Upon exiting the incubation phase and in the event of the startup being sold, a reduced rate of 10% will be applied to the capital gains on the sale.
In the event of entry into the operating phase, the company also benefits for a period of five years from an exemption from the license registration fees as well as increase of share capital. Again, all taxes and employer charges on salaries paid to their employees, with the exception of social contributions would be exempted.

Cameroon startups tax exemptions Cameroon startups tax exemptions

In addition, the draft text provides for the application of a reduced corporate tax rate of 15%; an application of a 50% allowance based on the calculation of the deposit and the minimum collection of corporate tax; an income tax credit of 30% on research and innovation expenses capped at CFAF 100 million; the application of a reduced rate of tax on income from movable capital of 5% on dividends paid to shareholders and interest paid to investors.
Beyond the fifth year of operation, a common law tax regime will be applied

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

Efficiency for Access allocates $3.7m to solar related technologies in Africa

October 24, 2020

The Efficiency for Access Research and Development Fund has just allocated more than 3.75 million dollars to 20 start-ups, three of which are based in Africa. The funds are earmarked for the development of solar-powered technologies. This funding follows a call for projects which saw the participation of several African start-ups, notably Jirogasy, based in Madagascar and specialising in connected objects and solar kits.

To promote the development of solar energy technologies. This is one of the objectives of a call for projects from the Efficiency for Access Research and Development Fund, the results of which are now known. The investment fund has decided to allocate £2.9 million (over $3.75 million) to finance the projects selected. These solutions will be developed by at least 20 start-ups, including three based in Africa.

Among the projects developed on the African continent and selected by Efficiency for Access is “Jirodesk V2”, a solar computer project led by the Malagasy start-up Jirogasy. “It aims to develop a solar-powered, all-in-one, energy-efficient computer that can be assembled locally. Once the pilot project is completed, the company aims to provide solar-powered computers to more than 10,000 Malagasy students each year,” explains Efficiency for Access.

According to Jirogasy, the choice of its solution for access to education via solar energy has enabled it to develop a new generation of its “more efficient” solar computers. According to him, the new computer will enable accelerated digitisation of education in Madagascar, especially in areas that are not connected to the national grid or have a low electricity supply.

“As a continuation of Jirogasy’s efforts, this PC will be designed and assembled locally with the manufacturing talent that already exists in Madagascar. It is a team of 12 technicians and engineers. In this assembly, Jirogasy favours the use of recycled components of African origin. The start-up is thus part of a circular economy approach to strengthen the local and continental economy throughout its value chain,” explains the young company based in Tananarive. This solution could also be deployed in other African countries where the digitisation of education is lacking due in particular to the low rate of access to electricity.

Simusolar’s solution also caught the attention of Efficiency for Access. The start-up is developing a project called “PAYG Bridge” to facilitate data synchronisation and the distribution of solar-powered pumps. These pumps enable smallholder farmers in Tanzania to irrigate their plantations. Simusolar’s pumps and other solar-powered devices are accessible to low-income populations through pay-as-you-go systems.

Within the framework of Modern Energy Cooking Services, six other start-ups have received funding from Efficiency for Access. These projects will be implemented in sub-Saharan Africa. The initiative is supported by the British cooperation and the IKEA Foundation of the late Swedish billionaire Ingvar Kamprad.

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

Former Investor In CopiaKenya And SWVL, Endeavor Catalyst Raises $134M For Investments In African Startups

September 22, 2020

African startups have a hot new fund to tap from, courtesy of Endeavor Catalyst, the innovative $100MM+ co-investment fund that invests in qualifying rounds of $5M+in both early stage and late stage startups built by Endeavor Entrepreneurs. The fund has closed its third fund at $134 million. This $134M Fund III represents the largest Endeavor Catalyst fund to date, surpassing the $120M target goal originally set. It also brings Endeavor Catalyst’s total assets under management (“AUM”) up to $250M.

Here Is What You Need To Know

The $134 million 3rd Fund “Endeavor Catalyst III” saw investments from Jordan’s Innovative Startups and SMEs Fund (ISSF) which invested $2 million and from other Jordanian Limited Partners (“LPs”), which invested $1.7 million, according to a statement by its Managing Director, Allen Taylor. The rest of the amount was secured from a galaxy of international investors.
Having invested earlier in some African startups: Egypt’s Swvl and Vezeeta as well as Kenya’s CopiaKenya, Cellulant and South Africa’s Entersekt, Endeavor Catalyst is an innovative, rules-based co-investment fund through which Endeavor invests into its portfolio companies led by high-impact entrepreneurs around the world.
Launched in 2012, Endeavor Catalyst has raised $250M across three funds and made 150+ investments to date across 30+ different markets.
Endeavor Catalyst operates as a separate entity from Endeavor, but benefits from Endeavor’s network and infrastructure in terms of sourcing and pipeline cultivation. Endeavor Catalyst’s Limited Partners are primarily individuals or organizations who already actively participate in the Endeavor network as mentors, board members, and even Endeavor Entrepreneurs themselves.

How Does Endeavor Catalyst Invest In Startups?

Following a disciplined, rules-based investment process, Endeavor Catalyst invests alongside professional venture capital and growth equity firms into the equity financing rounds of Endeavor Entrepreneurs.

The main rules of investment by Endeavor Catalyst are:

Investment only in the companies of Endeavor Entrepreneurs — these entrepreneurs have successfully passed Endeavor’s rigorous selection process. For instance, of the 5,000 companies screened by Endeavor Brazil last year, only 12 companies were selected to join the Endeavor network.
Participation in rounds of at least US$5 million+ in equity capital;
The round in question needs to be led by a qualified institutional investor.

If these criteria are met, Endeavor Catalyst seeks to invest in up to 10% of the round, with a maximum investment of US$2 million. Endeavor Catalyst portfolio companies continue to receive support services from Endeavor.

Endeavor also curates introductions between Endeavor Entrepreneurs and venture capital and growth equity investors through its Investor Network program.

At its most recent International Selection Panels (ISPs) in Cairo and Madrid in March and April, 2019 Endeavor selected a total of 55 entrepreneurs from 26 markets into its network, meaning it now supports 1,880 entrepreneurs leading 1,178companies in 34 markets around the world. Of the 55, 11 are from Africa, including four from Egypt, namely Ameer Sherif, the founder of jobs companies WUZZUF and Forasna, and Marwan Kenawy, Momtaz Moussa and Ayman Essawy, the co-founders of loyalty solutions developer Dsquares. Nigeria is also represented by four entrepreneurs, namely Flutterwave CEO Olugbenga Agboola and HealthPlus’ Bukky George, and Moses Babatope and Kene Okwuosa of the FilmHouse and FilmOne Group. Also selected were Moroccan Zineb Drissi-Kaitouni, who founded e-health platform DabaDoc, along with Ramla Jarrar and Firas Jabloun, the co-founders of Tunisian marketing company MASS Analytics.

Most recently, Obi Ozor and Ife Oyedele II, co-founders of Nigerian digital logistics company Kobo360, were also accepted into the network.

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

Algeria ’s Ministry of Startups Launches Mobile App To Limit Coronavirus Spread

March 22, 2020

An official mobile app to combat and limit the spread of the coronavirus in Algeria has been developed by the ministry responsible for startups.
The application (https://play.google.com/store/apps/details?id=com.covid19_algeria), the result of collaboration with the Ministry of Health and the private incubator incubator, will ‘‘alert authorities if a person has symptoms of the coronavirus, and this will allow them to do the screening without the person having to travel to avoid infecting other people.’’

Here Is All You Need To Know

In a statement to National Radio, Algeria ‘s Minister responsible for Startups, Yacine Oualid said all Algerian startups are mobilized against the coronavirus to help both the government and Algerian citizens in their quest to fight against this pandemic.

For example, he said, as part of the fight against the spread of Coronavirus, “Jumia”, a pan-African startup specialized in e-commerce, is distributing voluntarily, hydroalcoholic solutions. On its part, E-madrassa is voluntarily providing free online tutoring on the coronavirus disease. Mag-assistance, another startup has made available 10 medical ambulances for samples from home, the minister further said..

He also revealed that Algeria has asked Google to provide it with everything related to the pandemic, stressing that “a budget has been allocated to meet this demand”.

In addition, the minister reassured that the delay in the generalization of e-payment “will be made up in the next three or four months” adding that the problem is more “administrative than technical”.

Earlier this week, his counterpart in the Ministery of Micro-enterprise, Startups and the Knowledge Economy, Yassine Djeridene announced that his sector was working to establish a favourable business climate and a specific legal framework for micro-companies and startups, with a view to strengthening innovation and technological transition.

Expected in July, 2020, the legal framework for startups will provide greater effectiveness and efficiency in the creation of innovative businesses, the minister said.

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.
He could be contacted at udohrapulu@gmail.com