Tag Archives: Venture Capital
Venture Capital: Latest News
Staff, 1:00 am
The world has entered into a Fourth Industrial Revolution, and this time Africa is poised to take maximum advantage of it. Venture capitalists are investing large sums in Africa-based tech startups — $1 billion in 2016 — with the number of startups reaching 3,500. The revolution is led by entrepreneurs whose pioneering innovations seem destined to turn Africa into a global powerhouse and partner, changing its relationship with the rest of the world.
Ann Brown, 1:13 pm AFKI Original
There are millions of small-scale farmers locked out of Kenya’s formal economy. Alex Muriu is finding a way to help them. He created Farm Capital Africa to invest in profitable business ventures in the underfunded agricultural sector. He uses the internet to raise funds for agripreneurs — mostly youth and women age 25 to 35 — so they can scale up their agricultural ventures. “We have had some challenges,” Muriu told AFKInsider. “Social-impact investors are not as rampant as profit-making investors.”
Dana Sanchez, 7:17 pm AFKI Original
500 Startups invests 70% in the U.S. The rest of its deals are in 60 other countries and the VC fund has its eyes on Africa. “We continue to look for and source deals from traditionally underrepresented ecosystems,” said 500 Startups founding partner Dave McClure. Geeks on a Plane has done 17 tours. This will be its first in Africa. “We are looking to build stronger relationships with investors on the ground, maybe even find a few startups to invest in.” 500 Startups has invested in 1,700-plus companies. The tour is a way for startups, investors, and executives to learn about high-growth tech markets.
Dana Sanchez, 4:02 pm
Africa has potential to boast more billion-dollar startups than anywhere else on Earth, says an Africa-focused investment manager. More than 200 African private equity deals were reported in 2016. Almost a third were in South Africa, but the potential in Nigeria is mind boggling. Internet spending in Nigeria was nearly $2B last year, with only 3% of Nigerians having fixed broadband access. Multiple billions in spending is driven by mobile internet users. Digital content and the subsequent advertising and brand exposure are, for the first time, accessible by the majority of Nigerians on their mobile devices.
Dana Sanchez, 8:34 am
Paystack, one of Nigeria’s most hotly anticipated tech start-ups, has secured $1.3M seed funding from investors including Tencent and Comcast Ventures. China’s Tencent is 46% owned by South African media company Naspers. Comcast is the largest broadcasting and cable TV company in the world. Donald Trump said he intends to keep business ties to Comcast, staying on as executive producer for the spin-off of Comcast affiliate NBC’s “Celebrity Apprentice” series.
Dana Sanchez, 11:41 am
Youth unemployment, especially in failing states, is one of the causes of extremism. Firms less than 5 years old have for decades accounted for nearly all net job creation in the U.S. In less mature economies, entrepreneurs are just as critical for job creation, economists say. Entrepreneurship promotes peace. “We have to give people something to live for, instead of the guys that pitch them something to die for,” said Egyptian-American investor Ahmed El Alfi. Is the U.S. doing enough to promote entrepreneurship in its African foreign policy?
Dana Sanchez, 9:05 pm
When J. Eric Wright graduated in 1992 from the school often ranked No. 1 in the U.S. or the world for its MBA program, he went totally off the traditional mainstream MBA track — he moved to Ghana. Twenty-four years later, Wright is chairman of Africa Venture Partners, a South Africa-based venture capital and private equity firm, and director at the Picasso Group, a U.A.E.-based private investment and project development firm. But he says he wishes he’d taken more classes in human resources at Wharton.
Seeking New Markets: Venture Capital Fund Leaving London, Moving To East Africa. Here’s Who’s Already ThereBy Dana Sanchez, 11:35 am
London’s startup ecosystem is flooded with early stage funding for tech startups, so one of the city’s best-known venture capital funds is planning to move to a much less crowded neighborhood — East Africa. East Africa’s angel investment scene is rising, but slowly. Angel investing in Africa can make a big difference to economies there, said the founder of London VC fund Playfair Capital.
Kevin Mwanza, 5:32 am
African tech startups raised nearly $186 million in funding last year lead by South African, Nigerian and Kenyan companies, a report by Disrupt Africa showed. The ‘African Tech Startups Funding Report 2015’ showed that 125 tech startups in the region received the funding, with the solar sector seeing “the most activity” and accounting for a third of the total funding.
Staff, 10:37 am
Grovest, South Africa’s first venture capital company, hopes to raise $3 million to invest in disruptive high-growth South African digital-technology startups. Grovest seek investors invest $12,000-to$600,000 in the fund at a subscription price of $61 per share. The company is targeting four times that figure and is hopeful that it will be achieved, Chief Investment Officer Clive Butkow told Disrupt Africa.
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