More
    HomeEcosystem NewsVenture Capital & Funding SourcesIFC Invests $10.5 Million in 4DX Ventures Fund to Boost African Tech Startups

    IFC Invests $10.5 Million in 4DX Ventures Fund to Boost African Tech Startups

    Published on

    spot_img

    The International Finance Corporation (IFC) has announced a significant investment of $10.5 million in a new fund by 4DX Ventures, a New York-based venture capital firm. The fund, named 4DX Ventures Fund III, is aimed at supporting early-stage African technology companies spanning various sectors, including fintech, e-commerce, edtech, climate tech, and health tech.

    This investment by IFC underscores its commitment to bolstering emerging venture capital ecosystems and supporting early-stage companies across Africa, the Middle East, Central Asia, and Pakistan. The funding will be sourced from IFC’s $225 million venture capital platform, established last year with the goal of strengthening these vital sectors.

    The African continent has long been underserved by venture capital, receiving only a tiny fraction — just 2% — of global venture deal volume in the third quarter of 2023. The scarcity of capital, coupled with a slowdown in global venture capital investment, has posed significant challenges to tech entrepreneurs across Africa, where tech ecosystems remain in their nascent stages.

    Walter Baddoo, Co-Founder and General Partner of 4DX Ventures, emphasized the shared commitment between IFC and 4DX Ventures to support tech entrepreneurs driving innovation in critical areas such as climate, healthcare, fintech, e-commerce, and education. Baddoo expressed enthusiasm about partnering with IFC to empower promising tech startups and foster sustainable development impact across the continent.

    The focus of 4DX’s new fund will be on investing in companies offering tech solutions capable of enhancing productivity, efficiency, and competitiveness across Africa. Notable investments from the firm’s previous funds include Egypt-based e-commerce platform MaxAB, Ghana-based health tech firm mPharma, and Kenya-based B2B e-commerce platform Wasoko.

    IFC’s Vice President of Industries, Mohamed Gouled, highlighted the organization’s broader mission to support the development of tech ecosystems in emerging markets. By investing in ventures such as 4DX Ventures, IFC aims to improve access to essential services, enhance business competitiveness, and stimulate job creation through digital transformation across Africa.

    In addition to providing capital, IFC will collaborate with 4DX Ventures to implement an environmental and social management system, ensuring that investments align with sustainable development goals.

    IFC, a member of the World Bank Group, stands as the largest global development institution focused on the private sector in emerging markets. With operations spanning more than 100 countries, IFC leverages its capital, expertise, and influence to create markets and opportunities, particularly in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions, playing a pivotal role in ending extreme poverty and fostering shared prosperity amid global challenges.

    Founded in 2017, 4DX Ventures is a Pan-Africa-focused venture capital firm headquartered in New York City, with additional presence in Accra, Cairo, and Nairobi. The firm’s founders, Walter Baddoo and Peter Orth, collaborate with exceptional entrepreneurs dedicated to driving Africa’s technology revolution forward.

    Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

    Latest articles

    $500K Up for Grabs: Moroccan Diaspora’s MFounders Targets High-Potential Startups

    The club will focus on startups requiring initial funding between $50,000 and $500,000, addressing a critical need in the funding landscape for early-stage ventures.

    Nigerian Stocks Go Mobile: NGX Invest Opens Stock Market to Everyone

    The platform’s launch is timely, coinciding with the Central Bank of Nigeria’s (CBN) recapitalization directive, which has spurred numerous offers for subscription and rights announcements by Nigerian banks.

    South African Safetech Startup AURA Raises $1.1M Bridge Round to Democratize Safety

    The technology platform enables users to access the nearest vetted private security and medical response units through connected devices.

    Fuzé Investment Series: Togolese Media Startup Makifaa Secures Funding

    Founded in in 2023 by Doris DJAGLO and Jean Pignan, Makifaa’s unique approach blends the creative talents of local photographers with cutting-edge artificial intelligence (AI) to deliver personalized media solutions within an impressive 48-hour timeframe.

    More like this

    $500K Up for Grabs: Moroccan Diaspora’s MFounders Targets High-Potential Startups

    The club will focus on startups requiring initial funding between $50,000 and $500,000, addressing a critical need in the funding landscape for early-stage ventures.

    Nigerian Stocks Go Mobile: NGX Invest Opens Stock Market to Everyone

    The platform’s launch is timely, coinciding with the Central Bank of Nigeria’s (CBN) recapitalization directive, which has spurred numerous offers for subscription and rights announcements by Nigerian banks.

    South African Safetech Startup AURA Raises $1.1M Bridge Round to Democratize Safety

    The technology platform enables users to access the nearest vetted private security and medical response units through connected devices.