LA-Based VC firm injects $20mln into African startups

By : Samira Njoya

Date : jeudi, 31 août 2023 17:44

Although they remain focused on only a few countries, Africa continues to attract investors from around the world. This is mostly thanks to the good impetus of the youth-driven tech industry in sectors such as agriculture and education. 

The LA-based VC firm Black Ostrich Ventures announced the launch of a $20-million seed capital dedicated to African businesses that operate in areas such as clean technologies, supply chains, agritech and edtech.

This vehicle, backed by New York investors and wealthy Los Angeles individuals, targets start-ups in Tanzania, Zambia, Morocco and Uganda. Ajani Windsor-Areago, the General Partner of Black Ostrich Ventures, explained that “If you look at the capital inflows into VC in Africa, the Big Four countries—Nigeria, South Africa, Egypt, and Kenya—attract all the capital. But most exits do not happen in these markets". Selected startups will receive between $50,000 and $200,000 to develop their business, with the possibility of a follow-up investment of up to $1 million if the startup reaches Series A.

Focusing outside the big four is the way for Black Ostrich Ventures and its partners to help markets that generally receive little of the tech investment inflows in Africa. Let’s note that a report issued last July 11th by the research firm Magnitt revealed that Nigeria, South Africa, Egypt, and Kenya captured 94.5% of total financing raised by African tech startups in the first half of 2023.

Samira Njoya


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