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African Startups Raise Over $1bn in Past Two Months

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Digital Start Ups - Investors King

2022 has started off really promising for African startups with over $1bn raised in the first two months. This figure is more than half the cumulative funds raised in 2021.

Although 2021 was also a revolutionary year for many startups, this year is seeming quite promising. In 2021, the African tech space became three times larger than its previous value – scoring a record-breaking 2021 with total funding summing up to $2 billion.

Report by Disrupt Africa reveals that 564 African startups raised a combined $2,148,517,500 in 2021 – a record already nearing being defeated in 2022. In January, 44 startups are said to have raised more than $400m in funding while over $500 million was raised by 47 African startups in February. Summing up that figure with the total number of undisclosed funding raised by 19 startups in the past two months, the continent’s record in 2021 seems to be on its way to being broken early.

The report by Disrupt Africa reveals that the 110 startups have raised an estimated $1,123,556,000 between January and February 2022. The heavy numbers are linked to countries like Nigeria, Kenya, and South Africa. With Nigeria leading with 33 startups raising a combined $364,598,000 (32.5 per cent of the total) followed by twenty Kenyan startups that have raised $223,450,000 (19.9 per cent of the total), and 16 South African startups having secured $219,930,000 (19.6 per cent of the total).

Egypt is also responsible for a reasonable amount of investment. Although 2022 is seeming to be relatively slow for the North African country, 21 startups from Egypt has raised a total of $102,220,000 (9.1 per cent of the total) this year so far.

According to the data, fintech remains the main driver for investment in the continent with 34 of the 110 companies being fintech startups – raising a total of $434,296,000 in 2022 so far (38.7 per cent of the overall tally).

Projections with ongoing Russia-Ukraine Crisis

Although all seems to be going fine in the African tech space, the effects of the Russia-Ukraine conflict has affected major activities in the venture capital market globally. Since the Russian invasion last Thursday, 24th February, it’s been reported that funding announcements have reduced drastically.

Investors King recalls that following last Thursday’s attack, only 154 companies globally announced seed (early or late-stage) funding from the venture capital market or Angel Investors. Of the 154 startup companies, only 8 are from Africa.

This indicates that the ongoing crisis may be a threat to the growth projection of not only African startups but the global startup and venture capital market.

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Startups

Google To Fund 60 African Start-ups With $4 Million

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Google’s Head of Start-up Ecosystem, Africa, Mr Folarin Aiyegbusi has revealed that the company aims to fund 60 African Start-ups with a total of $4 Million. He made the statement during the opening of applications for Google for Start-up Black Founders Fund for Africa.

Following the success of the first cohort, the implementation is said to commence in the second cohort of Google for Start-up Black Founders Fund (BFF).

According to Folarin, Nigeria, Botswana, Cameroon, Côte d’Ivoire, Ghana, Ethiopia, Kenya, Rwanda, Senegal, South Africa, Tanzania, Uganda, and Zimbabwe are all eligible for FF Africa.

While the 13 countries were given priority because of their active tech and start-up ecosystems, he noted that good submissions from other African countries will also be evaluated.

Furthermore, Folarin explained that start-ups that assist the Black community and are based in Africa, as well as those with a diverse founding team, including at least one Black founder, were all considered.

“The Black Founders Fund Africa demonstrates our commitment to supporting innovations in underserved areas.

“Black-led tech start-ups face an unfair venture capital funding environment; that is why we are committed to helping them thrive to be better and ensure the success of communities and economies in our region.

“The fund will provide cash awards and hands-on support to 60 Black-led start-ups in Africa, which we hope will aid in developing affordable solutions to fundamental challenges affecting those at the base of the socio-economic pyramid in Africa.

“We are hopeful that the support received by the Black founders will enable them to grow their businesses and, in turn, drive economic growth in Africa as they create solutions and give back to their communities,” he said.

Google for Start-ups Black Founders Fund was launched in the wake of the 2020 Black Lives Matter movement as part of Google’s racial equality commitment.

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Here are The 23 African Startups for YCombinator W22 Batch

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Silicon Valley accelerator programme, Y Combinator has named eight more African startups for its winter 2022 batch – bringing the total number of African Startups for this batch to a total of twenty-three.

The accelerator programme has become an integral aspect of growth for many startups globally. Y Combinator plays an important role in bootstrapping and accelerating many startups in early-stage funding as well as connecting them to various opportunities to scale.

Y Combinator played an important role for a number of startups like Coinbase, Dropbox, Airbnb, e.t.c. The Winter Batch 2022 Demo Day is set to kick off next week and a total of 23 African startups will be present for this season’s round of accelerator programmes.

Y Combinator had early announced a number of startups since January and adding to the list, the eight new startups to join already listed startups are crypto platform Payourse, data-free internet service provider Simplifyd, on-demand clean meat provider Sendme, payments startup Vendy, open-source cloud-native webhook service Convoy, insurtech startup Curacel, and payment API provider Plumter and Sudanese fintech platform Bloom. The first-seven mentioned startups are all originating from Nigeria.

According to the accelerator programme, participants will receive seed funding to accelerate or bootstrap their companies as well as further investment opportunities at the demo day.

Investors King also gathered that the preceding season of the programme, the S21 edition, had only 15 African participants – a record that was higher than previous slots given to African startups. However, with the additional eight, this is another record to score the most slots for African startups.

Here are the 23 African Startups for The W22 Batch

Of the entire 23 startups, 18 are from Nigeria while the remaining five are from Ghana, Uganda, Ethiopia, Kenya and Sudan.

Nigeria: Dojah, Moni, Topship, Identitypass, Touch and Pay, EaziPay, Remedial Health, Hay Food, Plumter, Grey Finance, Lenco, Vendy, Sendme, Simplifyd, Payourse, Curacel, Convoy, and Duplo.

Ghana: Tendo

Uganda: Numida

Ethiopia: beU Delivery

Kenya: Boya

Sudan: Bloom

Investor King also gathered that the accelerator programme has also increased its deal size to US$500,000 from the previous US$125,000 for seven per cent equity it usually invested in the past. However, under its new deal, the Silicon Valley accelerator programme will also invest an additional US$375,000 on an uncapped SAFE with “Most Favoured Nation” (MFN) terms.

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Five Nigerian Startups Secures €120,000 From Orange Corners Innovation Fund

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Five Nigerian Startups will benefit from a fund provided by Netherlands Enterprise Agency following their breakthrough at the Orange Corners Innovation Pitch Competition.

The startups will go back to their businesses with €120,000 cumulative capital comprising a 75% grant and 25% loan.

The startup founders emerging winners from this competition include Oyewale Akintonde (founder of Agristi), Anita Dafeta (founder of Origho Lagos) and Israel Alabi, who founded Farmspeak Technology), Victoria Udoh (founder of Vudoh) and Tunder Adeyemi (Founder of D’Olivette Global Enterprise).

The pitch competition is an initiative of the Netherlands that was launched in Nigeria in 2019 and executed by FATE Foundation. The Orange Corners Incubation Programme claims to supports 20 entrepreneurs with enterprise development knowledge, mentoring, access to market, networking and funding every six months.

Investors King gathered that the programme has cumulatively supported over 100 entrepreneurs with funding valued over ₦250,000,000 for prototype development and testing.

The competition which was held in December saw participants assessed by an expert jury consisting of Investment Manager, Orange Corners Innovation Fund, Tolulope Owolabi; Head Commercial Controlling and Financial Planning, FrieslandCampina WAMCO Nigeria Plc, Omitogun Olalekan and Business Development Manager, Lagos Chamber of Commerce and Industry, Ekundayo Adedoyin.

The event was also attended by Oge Nnaife who heads the StartUp and Youth Enterprise FATE Foundation.

Congratulating the emerged winners, Nnaife said: “You are pitching today to access funding to scale up your business, but you must remember that the knowledge received during the six-month Orange Corners Nigeria Incubation programme is invaluable. You must, therefore, ensure that you practicalise your learning as you journey on this road called entrepreneurship. Though the Nigerian business environment is harsh, porous and unfriendly, it is still evolving and we will continue to contribute to ongoing policy conversations to create an enabling environment so that your businesses can thrive and not be stifled. We have designed the Orange Corners Incubation Curriculum in such a practical and experiential way.”

Nigeria continues to be one of the top hubs for technology products targeted at solving everyday issues in Africa. The country alone is responsible for a large position of investment funds in the continent year-in-year-out. Founders are emerging all over the country with brilliant ideas that are tested to solve many issues in the country.

However, one thing that many of these founders lack is funding and investments opportunities and most importantly, little or no involvement by the Nigerian government to show interest or support to scale their ideas. Thankfully, a number of incubator and accelerator programmes have sprung up both locally and internationally to aid these founders not only bootstrap their products but also scale in the startup ecosystem.

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