The African tech ecosystem is at a competitive stage, with innovations across sectors and many new ideas seeking just the right investors.
The emergence of Blockchain technology has prompted developers to create new solutions to prevailing challenges in financial markets, logistics, and commerce. Nigeria, South Africa, and Kenya have contributed immensely to the adoption of Blockchain technology in Africa but the revolution is happening across the continent.
Investment companies in Africa are expanding their focus on Web 3.0 developers as the technology becomes popular.
Here is a list of top Web 3.0 investors to watch out for in the continent in 2024.
- Launch Africa
A Pan-African VC fund created in 2020 that has invested in dozens of start-ups, ranging from Fintech to Market place solutions. The firm was established in Ebene, Mauritius but operates in more than 22 countries in Africa. The founders are Zachariah George and Janade du Plessis. Launch Africa helps developers to kickstart their projects by funding the early stages of an idea including seed funding and Series A rounds. The optimum amount invested by the company in every investment is $300k through S.A.F.E.S or convertible notes. Startups under the firm’s investment should be ready to receive Series A funding within 18 months.
Some of the notable startups Launch Africa has supported include (but not limited to): 1trolley in Egypt, Affinity Africa in Ghana, AfriEX in Nigeria, AMITRUCK in Kenya, Bloom in Sudan, and Credable in Tanzania. To apply for funding, a prospective startup can visit the company’s website and fill out the form. A response can be expected after two weeks. Launch Africa invests in startups that can be incorporated in investor-friendly countries such as the US, UK, and Singapore. Startups must also generate $25k in their Net Monthly Recurring Revenue (Net MRR) and achieve 10% in their month over month growth rate. The impressive list of startups aided by Launch Africa reveals the company’s commitment to support startups in every step of their development.
- Loftyinc
The company was founded in 2010 by Idris Bello and Michael Oluwagbemi. Loftyinc has an Angel Fund ranging between $10k and $100k which can be used by individuals with brilliant ideas but no capital. The company has managed to raise over $23 million which have created more than 6000 jobs in 37 countries all over the continent. Startups that have benefited from Loftyinc include: Biotech, FinTech, Crypto, and E-commerce.
The company guides startups through all stages of funding, offering insights that hasten expansion. The VC firm funded startups such as Reliance HMO, Flexpay, Chefaa, and Printivo. The company’s Pan-African focus allows developers to feel confident about pitching homegrown ideas to local challenges.
- Founders Factory
Founders Factory Africa was founded in 2018 by Roo Rodgers and Alina Truhina. It has its headquarters in Johannesburg, South Africa. This VC firm invests upto $250k in Pre-seed and Seed stages of a startup company. It also raises Catalytic capital ranging to $150k for its portfolio companies to help them grow and expand.
Startups that have been beneficiaries of Founders Factory include: Zuri Health, Floatpays, Lipalater, and Tripplo. Last year the company raised $114 million for startups within its umbrella.
- Partech Ventures
Partech Africa was launched in 2018 to address funding of various ideas in FinTech, E-commerce, Entertainment, and Digital Education. Its founders are Tidjane Deme and Cyril Collon. During its initial operations, the company sealed a €57 million deal that would strengthen 17 startups in Series A and B rounds across the continent. Later in 2023, Partech Africa raised €245 million for early and growth stage startups. The firm has supported startups such as TradeDepot, Wave, Yoco, Reliance and Nomba.
- Enza Capital
A Nairobi-based VC firm that focuses on startup sectors like logistics, FinTech, Climate and Energy solutions, and education. It was launched in 2019 by Mike Mompi. Enza Capital invests funds in startups from the Pre-seed stage to the Series B round in several African countries.
The company has other offices in Johannesburg, New York, and London. Startups that have gained capital from the firm include: SeamlessHR, Peach Payments, and Autochek. ‘Sendy’, a startup that closed shop last year, was also funded by Enza Capital.
- Verod Kepple
Verod Kepple was founded in 2022 by Satoshi Shinada, Ryosuke Yamawaki, and Ory Okolloh. Located in Lagos, the VC firm provides funding to startups focused on infrastructure and home-grown solutions. Verod Kepple has helped to raise funds for companies like Koko, Ceviant, and Nowpay.
The firm partners with Japanese investors to support startups in their Series A and B rounds. Last year, the company announced $43 million for startups in Africa making it one of the most sought after VCs in the continent.
- 4DX Ventures
This VC company is located in Cairo, Nairobi, Accra, and New York. It was established in 2017 by Peter Orth and Walter Baddoo to connect African startups with potential investors. It raised $20 million during its first year of establishment growing up to $60 million in 2021.
Last year, 4DX Ventures set a target of $100 million to fund startups’ seed capital as well as Series A and B rounds. Startups funded by 4DX ventures include Nestwatch in Nigeria, Wasoko in Kenya, and MaxAB in Egypt. Prominent companies that 4DX ventures supported in their fledgling status include mPharma and Flutterwave.
- EMURGO Africa
EMURGO Africa focuses on startups and enterprises that utilize Web 3.0 technologies. The firm aims to empower African startups to embrace blockchain solutions. Across the continent, the Blockchain sector faces strong distrust and regulatory loopholes. By investing in startup technologies on Web 3.0, EMURGO Africa intends to popularize the sector and alert industry stakeholders of the need to focus on the new child on the block.
EMURGO Africa also co-launched a Cardano accelerator platform called Adaverse. The platform allows web 3.0 developers in the continent to pitch ideas for further development. Adaverse also mentors and invests in Web 3.0 startups across Africa to accommodate all ingenious solutions. Adaverse announced in 2022 that its goal to digitally transform Africa will see hefty investment in more than 300 web3 startups in the following three years. Some brilliant African web3 startups that Adaverse has supported include Melanin Kapital in Kenya which received pre-seed funding in 2023, AfriBlocks in Zimbabwe, Canza Finance in Nigeria, and Cassava Network.
In March last year, EMURGO Africa invested in a Nigerian fantasy football startup using Blockchain technology called ‘FanBants’. African football audiences can create personalized teams and receive points based on the weekly performance of real players.
EMURGO Africa intends to build a community of Web 3.0 developers and maximize innovation on Cardano accelerators. This will also help the continent to smoothly transition into Crypto infrastructure.
- VCs that focus on Web 3.0 related investments
Some of the VCs that are interested in startups concentrating on Blockchain technologies include :
- Andreessen Horowitz founded in 2009 by Marc Andreessen and Ben Horowitz. The company focuses on early and growth stage startups including Dapper, OpenSea, and Ripple.
- Tiger Global located in New York offers Pre-seed, seed, Series A and B funding for startups like PDAX, Devron, and Novi Connect.
- Sequoia Capital in California raises funds for early and growth startups such as Polygon, Bitmain, and Binance.
