Just days before the outbreak of the Coronavirus in 2020, Nigerian fintech startup Carbon announced the rollout of a $100,000 pan-African fund for startups. According to the company, the Carbon Disrupt Fund was established to address the lack of funding and support hindering budding tech entrepreneurs on the continent. It aimed to invest up to $10,000 per startup in exchange for a 5% equity stake. Founded by entrepreneurs Ngozi Dozie and Chijioke Dozie of fintech startup Carbon, the initiative was expected to ignite collaboration and drive further investment, fostering growth across the ecosystem.
However, Carbon was not the pioneer in this regard. A significant number of other African tech entrepreneurs have embarked on similar paths. Below, we endeavor to compile a nearly comprehensive list of them.
Name of Founder | Country | Former/Present Startup | Name of VC Fund | Year VC Fund was Founded | Portfolio of VC Fund |
---|---|---|---|---|---|
Ngozi Dozie; Chijioke Dozie | Nigeria | Carbon | Carbon Disrupt Fund | 2020 | Afropolitan |
Jason Njoku | Nigeria | Iroko TV | Spark.ng (Investzilla) | 2013 | Insured.com.ng; Giddimint.com.ng |
Iyinoluwa Aboyeji | Nigeria | Flutterwave | Future Africa Fund (Future Africa Collective) | 2019 | Bamboo; Chaka; Afriex; Afripolitan; Big Cabal Media; Ndovu; Alvin; Kwara; Eden Life; Edves; Pngme; Akiba Digital; Smile Identity; MarketForce; MDaaS Global; PayHippo; Nexford University; Bongalow; Lami Technologies; Stitch API; TopUp Mama; Norebase |
Bosun Tijani | Nigeria | CcHub | Growth Capital Fund (CcHub Syndicate) | 2017 | E-tailers, DrugStoc, Edves. |
Sim Shagaya | Nigeria | Konga/uLesson | The Honey Badger Fund | 2023 | – |
Aisha Pandor | South Africa | SweepSouth | E4E Africa | 2020 | Enlabeler |
Philani Sangweni | South Africa | AKRO Accelerate | E4E Africa | 2020 | Enlabeler |
Odunayo Eweniyi | Nigeria | PiggyVest | FirstCheck Africa | 2021 | Cleva Banking; Wasoko; TopUp Mama |
Yemi Keri | Nigeria | Heckerbella Limited | Rising Tide Africa | 2016 | Aruwa Capital; Oze |
Mohamed Okasha | Egypt | Fawry | DisrupTech Ventures | 2020 | Sprints.ai; MNT-Halan |
Ahmed Barakat | Egypt | Sotech Technologies | Innlife Investment | 2020 | Sigma Fit; |
Kola Aina | Nigeria | Ventures Platform | Edu Platforms | 2016 | Reliance HMO; Flutterwave; Mono; MDaaS; ThankUCash; Trove; Lemonade Finance; Payday; PayHippo; MoneyHash; Bridgecard; TopUpMama; Norebase |
Sangu Delle | Ghana | CarePoint (formerly Africa Health Holdings) | Golden Palm Investments | 2006 | Flutterwave; Mono; Chaka; Autochek; Sokowatch; Tizeti; Wowzi; Appetito; Autochek; ILLA Logistics; Sendbox; Mono; Chaka; Jetstream Logistics; |
Darshan Chandaria | Kenya | Darshan Industries | Chandaria Capital | 2017 | Ilara Health; Carry1st; Kobo360 |
Ziad Mokhtar | Egypt | eSpace; oliv | Algebra Ventures | 2015 | Dsquares; GoodsMart; Elmenus; Eventtus; La Reina;Community; Halan; Trella; Brimore; Orcas; Yodawy; Mozare3; Sakneen; Sylndr |
Bunmi Akinyemiju | Nigeria | Venture Gardens Group | GreenHouse Capital | 2014 | CredPal; Helium Health; Lipa Later; Busha; Yellow Card; MarketForce; BFREE; PopotePay |
Pauline Koelbl | Rwanda | AfriProspect | ShEquity | 2020 | WidEnergy |
Vinny Lingham | South Africa | Civic Technologies; Rumi.Ai | Newtown Partners | 2014 | Lori Systems; Field Intellgience; SweepSouth; Wala; OVEX; MDaaS Global; Redbird |
Llew Claasen | South Africa | Incubeta | Newtown Partners | 2014 | Lori Systems; Field Intellgience; SweepSouth; Wala; OVEX; MDaaS Global; Redbird |
Kenza Lahlou | Morocco | StartupYourLife | Outlierz Ventures | 2018 | Sokowatch; MaxAB; Asoko Insigh; Freterium. |
Shehab Marzban | Egypt | Dfin | Camel Ventures; EFG-EV Fintech | NowPay; Raseedi; XPay; KlickIt; KIWE; Fatura; Mozare3; zVendo; Dayra | |
Yele Bademosi | Nigeria | Bundle; Nestcoin | Microtraction | 2017 | Sendbox; NowPay; 54gene; Cowryrise; Wallet.ng; ThankUCash; Accounteer; Riby; Stack Dx; Orda; Lemonade Finance; Payday; Chaka; Norebase |
Richard Dewing | South Africa | Dewing Holdings (Pty) Ltd; DataFox; ECi Solutions | Knife Capital | 2010 | DataProphet; Snapplify; PharmaScout; Wamly; VoxCroft Analytics; Stone Three; Kandua |
Michael Jordaan | South Africa | Bank Zero | Montegray Capital | 2014 | VALR; FlexClub |
Habib Karaouli | Tunisia | Banque d’Affaires de Tunisie; CAP Bank | Capsa Capital Partners | 2012 | Enova Robotitcs; Intigo |
Dalia Ibrahim | Egypt | Nahdet Misr Digital Solutions | EdVentures | 2017 | OTO Courses; EYouth; Career180; Colnn; OBM Education, Super Fny, and Crafty Workshop; Career 180 |
Reuel Khoza | South Africa | Nedbank | LionPride Agility Fund | 2017 | BusyMed |
Jason Goldberg | South Africa | NXT-9; 10X Entrepreneur | Edge Growth; Vumela Fund | 2007 | Syafunda |
Justin Stanford | South Africa | ESET Southern Africa | 4Di Capital | 2009 | CompariSure; Zoona; Aerobotics; InvestSure; Bfree; LifeQ South Africa |
Anton van Vlaanderen | South Africa | Meaka Group International | 4Di Capital | 2009 | CompariSure; Zoona; Aerobotics; InvestSure; Bfree; LifeQ South Africa |
Erik van Vlaanderen | South Africa | Meaka Group International | 4Di Capital | 2009 | CompariSure; Zoona; Aerobotics; InvestSure; Bfree; LifeQ South Africa |
Polo Mohau Leteka | South Africa | IM In Seed Fund and Accelerator | IDF Capital | 2008 | Zulzi; Kandua; MortgageMarket |
Nichole Yembra | Nigeria | GreenHouse Lab; Agni Fitness | Chrysalis Capital | 2019 | Helium Health; Bankly |
Ola Brown | Nigeria | Flying Doctors, Nigeria | HealthCap Africa | 2011 | Kukua |
Kareem Elsirafy | Egypt | Unite US | Modus Capital | 2015 | Pravica |
Anton Newbury | South Africa | DNI | Enso Equity | 2019 | Ingress Healthcare |
Idris Ayodeji Bello | Nigeria | AfyaZima Africa Ltd | LoftyInc Capital Management | 2018 | YouVerify; Wowzi; Moove; Mono; Chefaa; Flutterwave; OnePipe.io; PAPS; Orda; Wowzi; Flex Finance; Sabi.am; ILLA Logistics; Payday; Ejara; Odiggo; CashBackApp; Akiba Digital; SHYFT Power Solutions |
Chris Muscarella | Nigeria | Kitchensurfing; Field Company | Timon Capital | 2018 | Sokowatch; Omnibiz; Decagon |
Achim Klennert | South Africa | Compass Insurance Company | Lireas Holdings (Pty) Ltd | 2006 | Pineapple; Lumkani; InvestSure; Pineapple Insurance |
Nick Allen | South Africa | Formfoods | Savant Venture Fund | 2015 | SmartBlade; Jonga Systems |
Jim Ovia | Nigeria | Zenith Bank | Qauntum Capital Partners | 2010 | TeamApt |
Tijan Watt | Senegal | Oasis International SA | Wuri Ventures | 2020 | WhereIsMyTransport; Norebase |
Madji Sock | Senegal | Dalberg | Haskè Ventures | 2022 | Kwely; ProXalys |
Birame Sock | Senegal | Kwely | Haskè Ventures | 2022 | Kwely; ProXalys |
Olumide Soyombo | Nigeria | Bluechip Technologies Ltd | Voltron Capital | 2021 | Etap Insurance; Bfree; Alvin; Payourse; Payday; Bridgecard; Norebase |
Rafeh Saleh | Egypt | Consulting Pad | Cubit Ventures | 2021 | Rology; ILLA Logistics |
Ameer Sherif | Egypt | BasharSoft | Khwarizmi Ventures | 2018 | Pylon; Khazna; Bosta; Chari.ma; Fatura |
Tarek Roushdy | Egypt | Seaharvest Oil & Gas Services | UI Investments | 2021 | Otida; Welnes; 3attar; beXel |
Adegoke Olubusi | Nigeria | Helium Health | Magic Fund | 2018 | Klump; Float Fintech; Bypa-ss; Vendease; Payday; Bongalow |
Karim Beshara | Egypt | Orascom Telecom, Media & Technology; LINKdotNET | A15 | 2014 | OneOrder; Sympl; Laverie; Paymob; Esaal Healthtech |
Hema Vallabh | South Africa | WomHub | Five35 Ventures | 2020 | Zindi; Shuttlers |
Olu Oyinsan | Nigeria | Doorby.com | Oui Capital | 2018 | Duplo; Ndovu; Herconomy;MVX Freight; Akiba Digital; TeamApt |
Zachariah George | South Africa | Startupbootcamp | Launch Africa Ventures | 2021 | Amitruck; Orcas; Kwara; Gozem; Mobiz; Shuttlers; Semicolon; RxAll; Africa; Bypa-ss; Edves; Yobante Express; Kashat; Omnibiz; Chekkit Technologies; MVX Freight; Julaya; Strove; MarketForce; Kune; BFREE; Kidato; Pricepally; Zuri Health |
Gbite Oduneye | Nigeria | MERIFX (www.merifx.com.ng) | Odba VC | 2021 | AltSchool; Treepz; Kuda Bank |
Mezuo Nwuneli | Nigeria | AACE Foods | Sahel Capital | 2013 | TradeDepot |
Ike Eze | Nigeria | Centrro Inc.; GPlay Inc.; QSpace, Inc; | Beta Ventures | 2017 | Edves; Smile Identity; BFREE |
Kenneth Legesi | Uganda | Xente | Ortus Africa Capital | 2019 | Ridelink |
Michael Fichardt | South Africa | Morpheeo | OneBio Seed Investment Fund | 2017 | LifeQ South Africa |
Download a copy of the list here
Exploring the Factors Behind the Increase in Founder-to-Investors Transition in Africa
During the interval from 2010–2019, there was a notable surge in the number of African founders transitioning into investors, reflecting a maturing entrepreneurial landscape across the continent. This transition can be attributed to several key factors. Firstly, as the startup ecosystem in Africa began to gain traction, successful founders sought to leverage their experience and capital to support emerging entrepreneurs. Secondly, increased access to global networks and funding opportunities encouraged founders to diversify their roles and position themselves early enough for the opportunities that abound in the ecosystem. Additionally, the period also saw a rise in successful startups and noteworthy exits, equipping founders with the financial resources and confidence needed to venture into investment. This not only promised attractive financial returns but also offered a chance to make a substantial societal contribution.
Nigerian, South African and Egyptian Founders are More Likely to Turn Investors
The comparative rate of founders transitioning into investors across various African countries highlights subtle trends within the continent’s entrepreneurial ecosystems. Nigeria emerges as a frontrunner with 36% of founders embracing the role of investors, reflecting its vibrant startup scene and robust investment opportunities. South Africa closely follows at 32%, underscoring its position as a regional hub for innovation and venture capital. Egypt’s rate of 18% signifies a growing interest in investment activities, propelled by government support and a growing tech sector. However, the lower rates observed in countries like Senegal, Ghana, Kenya, Rwanda, Morocco, Tunisia, and Uganda at 6% or below suggest varying degrees of development in their startup ecosystems, potentially hindered by factors such as limited access to funding, regulatory challenges, or emerging entrepreneurial traditions. Despite variations, the collective rise of founders transitioning into investors across Africa signals a promising evolution towards a more inclusive and dynamic investment landscape, ripe with opportunities for economic growth and innovation.
Male Dominance in Founder-to-Investor Transition
Data suggests a notable disparity in the transition of African founders to investors, with a significantly higher proportion of males engaging in investment ventures compared to their female counterparts. Among the founders who transitioned into investors, a substantial 80% were male, while only 20% were female. This discrepancy underscores broader gender imbalances within the entrepreneurial and investment landscapes across Africa. Various factors may contribute to this trend, including unequal access to resources, networks, and opportunities for female entrepreneurs, as well as cultural and societal barriers that may hinder their participation in investment activities. Addressing these disparities is crucial for fostering a more inclusive and equitable entrepreneurial ecosystem in Africa, where both male and female founders have equal opportunities to thrive as investors and contribute to economic growth and innovation.
The Common Characteristics of an African Entrepreneur Investor
African founder-turned investors are known for their long-term commitment to their investment firms. Unlike the more transient founder culture seen in other regions, African tech entrepreneurs tend to stay with their ventures for the long haul. This steadfast approach is evident with the majority of founders who rarely exit their investment firms once they embark on their investment journey. There are, however, exceptions to this trend. A select few manage to run their startups while simultaneously handling the responsibilities of their investment firms, showcasing a remarkable ability to juggle dual roles effectively.
It is also observed that most investment firms led by African founders operate on a part-time basis. This could be attributed to various factors, including the need for diversified income streams or the lack of sufficient capital to warrant full-time dedication. While this might raise questions about the intensity of their commitment, it also reflects the pragmatic approach of African founders who must navigate the unique challenges of the continent’s investment landscape.
The increasing number of entrepreneur investors is indeed commendable and signifies a maturing ecosystem. However, it’s important to acknowledge that only a handful of these founders possess substantial entrepreneurial experience prior to their investment endeavors. This gap in experience doesn’t necessarily diminish their potential to contribute to the ecosystem, but it does highlight the need for a supportive environment that fosters learning and growth for both seasoned and emerging entrepreneur investors.
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