BrandArena: Founders Factory Africa secures $114 million to fund Africa tech ecosystem

Tuesday, 15 August 2023

Founders Factory Africa secures $114 million to fund Africa tech ecosystem

Founders Factory Africa, an African early-stage investor supporting founders in the continent, has secured $114 million to fund startup founders across the African tech ecosystem.

This strategic boost, supported by the Mastercard Foundation and Johnson & Johnson Impact Ventures, underscores Founders Factory Africa’s commitment to catalyzing African tech entrepreneurship. This development builds upon previous investments from Standard Bank, Small Foundation, and Netcare, solidifying Founders Factory Africa’s position as a beacon of opportunity for burgeoning startups.

“We are excited to have new and dynamic funding, which follows on from previous investments into Founders Factory Africa by Standard Bank Group, Small Foundation and Netcare Group”, says Alina Truhina, co-founder of Founders Factory Africa.

This funding injection will empower the early-stage investor to scale its model, offering enhanced support to technology-driven startups and founders across the continent. Since its inception in 2018, Founders Factory Africa has played a pivotal role in shaping the trajectory of over 55 tech startups, fueling a wave of innovation that resonates far beyond its headquarters. Some of the startups include, RxAll, Wazi (Kenya), Asaak (Uganda), and Revix (South Africa) in recent times.

Empowering a Diverse Tech Landscape
The influx of funding propels Founders Factory Africa to expand its horizons and tailor its approach to the evolving tech landscape. The additional support will facilitate the realization of several strategic initiatives:

Sector-Agnostic Investment: Founders Factory Africa will adopt a sector-agnostic investment strategy, aligning with founders who prioritize business fundamentals. This flexible approach allows for a broader spectrum of innovation to thrive.

Addressing Gender Imbalance: A critical focus will be placed on addressing the gender imbalance within the tech ecosystem. By amplifying support for female founders, Founders Factory Africa aims to create a more inclusive and equitable entrepreneurial environment.

Diverse Capital Investment: The funding will enable Founders Factory Africa to expand its capital investment offerings to include non-dilutive capital. This recognition of various capital deployment needs across different venture maturity stages speaks to Founders Factory Africa’s commitment to supporting startups at every phase of growth.

Enhanced Venture-Building Support: To cement its role as a cornerstone of entrepreneurial success, Founders Factory Africa will strengthen its internal capacity. This ensures that its portfolio of startups continues to receive unparalleled venture-building support, nurturing their growth and impact.

Bongani Sithole, CEO of Founders Factory Africa, extends an invitation to innovators across the continent: “Come build with us.” This rallying cry encapsulates the organization’s steadfast commitment to driving Africa forward through tech-driven ventures that possess the potential to bring about impactful and rapid change. By providing founders with not just funding, but also knowledge and hands-on support, Founders Factory Africa positions itself as a catalyst for commercial success that reverberates beyond individual startups, creating a ripple effect of systemic transformation.

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