Kenyan-based Africa Tech Ventures has raised Ksh750 million from Africa Development Bank to invest in the growth of high potential start-ups in Sub-Sahara Africa.
The equity investment is part of the Boost Africa Investment Program, a joint collaboration between the AfDB, the European Commission (EC) and the European Investment Bank (EIB).
“Africa is experiencing rapid mobile penetration. This provides huge opportunity to the development of start-ups and small and medium scale enterprises. But there is a scarce risk capital to venture capital funds targeting early stage businesses,” said Stefan Nalletamby, the AfDB’s director for financial sector development.
The venture capital firm, run by Eline Blaauboer and Mairead Cahill, will focus on companies that increase access to essential goods and services for African consumers or provide solutions that help businesses access markets and financial services.