The African tech ecosystem is at a competitive stage, with innovations across the board and many new ideas looking for 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 firms in Africa are expanding their focus on Web 3.0 developers as the technology gains traction.
Here’s a list of the top Web 3.0 investors to watch out for on the continent in 2024.
- Launch Africa
A pan-African VC fund created in 2020 that has invested in dozens of startups, ranging from Fintech to Marketplace solutions. The company was founded in Ebene, Mauritius but operates in more than 22 countries in Africa. Founders are Zachariah George and Janade du Plessis. Launch Africa helps developers get their projects off the ground by funding the early stages of an idea, including seed funding and Series A rounds. The optimal amount the company invests in each investment is $300,000 through SAFES or convertible notes. Startups under the company’s investment should be ready to receive Series A funding within 18 months.
Some of the notable startups that Launch Africa has supported include (but are 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% per month growth rate. The impressive list of startups supported by Launch Africa reveals the company’s commitment to supporting startups at every step of their development.
- Loftyinc
The company was founded in 2010 by Idris Bello and Michael Oluwagbemi. Loftync has an Angel Fund ranging from $10,000 to $100,000 that can be used by people with great ideas but no capital. The company has managed to raise over 23 million dollars which has created more than 6000 jobs in 37 countries across the continent. Startups that have benefited from Loftync include: Biotech, FinTech, Crypto and eCommerce.
The company guides startups through all stages of funding, offering insights that accelerate expansion. The VC firm has funded startups like Reliance HMO, Flexpay, Chefaa and Printivo. The company’s pan-African focus allows developers to feel confident in promoting homegrown ideas to local challenges.
- Founders Factory
Founders Factory Africa was founded in 2018 by Roo Rodgers and Alina Truhina. It is headquartered in Johannesburg, South Africa. This VC firm invests up to $250,000 in Pre-seed and Seed stages of a startup company. It also raises Catalytic funds ranging up to $150k for its portfolio companies to help them grow and scale.
Startups that have been Founders Factory beneficiaries include: Zuri Health, Floatpays, Lipalater and Tripplo. Last year the company raised $114 million for startups under its umbrella.
- Partech Ventures
Partech Africa was launched in 2018 to tackle the 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 boost 17 startups in Series A and B rounds across the continent. Later in 2023, Partech Africa raised €245 million for early-stage and incremental growth startups. The company has backed startups like TradeDepot, Wave, Yoco, Reliance and Nomba.
- Enza Capital
A Nairobi-based VC firm focusing on startup sectors such as logistics, FinTech, climate and energy solutions and education. Released in 2019 by Mike Mompi. Enza Capital invests capital in startups from Pre-seed stage to Series B round in several African countries.
The company has other offices in Johannesburg, New York and London. Startups that have raised capital from the company 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. Based in Lagos, the VC firm provides funding to startups focused on infrastructure and homegrown solutions. Verod Kepple has helped raise capital for companies such as Koko, Ceviant and Nowpay.
The company works with Japanese investors to back startups in 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 on the continent.
- 4DX Ventures
This VC firm is located in Cairo, Nairobi, Accra and New York. Founded in 2017 by Peter Orth and Walter Baddoo to connect African startups with potential investors. It raised $20 million in its first year, growing to $60 million in 2021.
Last year, 4DX Ventures raised $100 million in seed funding for startups 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 backed by 4DX ventures in their initial status are mPharma and Flutterwave.
- EMURGO Africa
EMURGO Africa focuses on start-ups and businesses using Web 3.0 technologies. The company aims to empower African startups to embrace blockchain solutions. Across the continent, the Blockchain sector faces intense mistrust and regulatory loopholes. By investing in Web 3.0 startup technologies, EMURGO Africa intends to popularize the industry and inform industry stakeholders of the need to focus on the new kid on the block.
EMURGO Africa has also launched a Cardano accelerator platform called Adaverse. The platform allows web 3.0 developers on the continent to propose ideas for further development. Adaverse also mentors and invests in Web 3.0 startups across Africa to host all smart solutions. Adaverse announced in 2022 that its goal to digitally transform Africa will see massive investment in more than 300 web3 startups over the next three years. Some great African web3 startups that Adaverse has backed include Melanin Kapital in Kenya, which received pre-2023 funding, AfriBlocks in Zimbabwe, Canza Finance in Nigeria, and Cassava Network.
In March last year, EMURGO Africa invested in a Nigerian fantasy football start-up using Blockchain technology called ‘FanBants’. African football fans can create personalized teams and receive points based on the weekly performance of real players.
EMURGO Africa aims to build a community of Web 3.0 developers and maximize innovation in Cardano accelerators. This will also help the continent transition smoothly to the Crypto infrastructure.
- VCs focused on Web 3.0 related investments
Some of the VCs interested in startups focused on Blockchain technologies include:
- Andreessen Horowitz was founded in 2009 by Marc Andreessen and Ben Horowitz. The company focuses on early stage startups including Dapper, OpenSea and Ripple.
- New York-based Tiger Global offers Pre-seed, Seed, Series A and B funding for startups such as PDAX, Devron and Novi Connect.
- California-based Sequoia Capital raises capital for early stage and growth startups such as Polygon, Bitmain and Binance.