While Africa’s venture capital (VC) sector remains small, there might be something to smile about for tech startups that operate on the continent.
More than 20 new VC funds that aim to invest in African tech startups were launched this year. The total capital that will be available to startups from these funds runs into hundreds of millions of dollars.
The new funds range from a €1-billion Africa fund launched by the German government in June, to Omidyar Network‘s new $300-million evergreen venture fund that will back impact fintech startups.
The full list of funds aimed at African startups from all regions (see below this for region-specific funds), includes:
- A new $23-million fund launched in September by Accion Venture Lab, the seed investment initiative of US-based non-profit Accion, aimed at fintech startups that focus on financial inclusion (see this story).
- A $40-million fund launched in August by Australia-based global impact firm Palladium to invest in agribusiness value chains and off-grid clean energy ventures in Ghana, Kenya and Nigeria (see this story).
- A €1-billion Africa fund launched by the German government in June. The fund will support African startups and small businesses, as well as German and European companies. It’s not yet clear when the fund will make its first investments or which startup verticals it will target (see this story).
- Berlin-based company builder Ampion Venturesannounced in March that it’s looking to provide African tech startups with “up to six-digit” funding (in dollars) (see this story).
- In March, philanthropic investment firm Omidyar Network announced it had has spun out its financial inclusion initiative unit to launch Flourish, a $300-million evergreen venture fund that will back impact fintech startups (see this story).
- French impact investment group Investisseurs & Partenaires (I&P) says its new fund is on track to raise between €80-million and €90-million after it made a second closing of €25-million in February (see this story).
- Ingressive Capital, a $5-million venture fund focused on early-stage African startups, announced in February that it is looking to invest tickets sizes of up to $100 000 in tech startups from Sub-Saharan Africa, with a possibility of making $250 000 in follow-on investments (see this story).
- In January, Silicon Valley based venture capital (VC) fund Partech announced that it had completed a raise for its Africa Fund, with the fund closing at €125-million, more than double the size of its first closing a year ago at €57-million ($70-million). It claims it has raised the largest VC fund dedicated to tech startups in Africa (see this story as well as this one on the deals it made in 2019).
- Emerging markets startup competition Seedstarsin April announced that it would launch a $100-million fund to invest in African startups in collaboration with Paris based First Growth Ventures. The fund will make early-stage minority investments from $250 000 to $5-million in the most promising and innovative ventures across sectors and countries. While the fund was expected to make its first investments by the end of this 2019, no announcement had been made as of time of publication (see this story and this Q&A).
Read more at Ventureburn.