Founders Factory Africa, a pioneering early-stage startup accelerator and venture studio, has raised an impressive $114 million in funding from prominent backers, including the Mastercard Foundation and Johnson & Johnson Impact Ventures. This substantial investment is set to drive the expansion of Founders Factory Africa’s operations and make a significant impact on up to 140 tech startups across the African continent.
In a statement to offer her perspective on this recent boost, Founders Factory Africa co-founder Alina Truhina stated that, “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,”
Since its inception in London in 2015, Founders Factory Africa has played a pivotal role in nurturing budding ventures in Africa’s competitive startup ecosystem. With a distinctive approach that blends strategic capital injection and hands-on operational guidance, the accelerator provides startups with the opportunity not only to survive but also to thrive in a rapidly evolving market.
“Our role as Founders Factory Africa is to provide founders with the funding, knowledge, and hands-on venture building support they need to achieve commercial success and create outsized, systematic impact.” reiterated Founders Factory Africa CEO Bongani Sithole
The recent funding infusion from the Mastercard Foundation and Johnson & Johnson Impact Ventures serves as a testament to the efficacy of Founders Factory Africa’s hybrid investment model. This model combines both capital and operational support to empower startups and founders across the African continent. Building on the success of its previous investments from Standard Bank, the Small Foundation, and Netcare, Founders Factory Africa is now poised to accelerate its growth trajectory and expand its reach.
Founders Factory Africa’s portfolio already encompasses over 55 tech startups spanning 11 African countries. Covering a wide range of sectors including fintech and health tech, the portfolio includes standout companies like Zurihealth, a digital healthcare platform based in Kenya; Asaak, an innovative Ugandan asset financing startup targeting drivers in East Africa; Floatpays, a platform enabling early access to wages; and Fresh Source, an Egyptian food tech startup.
With this fresh influx of funding, Founders Factory Africa is committed to advancing its investment model, particularly by becoming sector-agnostic. The accelerator aims to collaborate with founders who prioritise sound business fundamentals and is eager to address the gender imbalance prevalent in the startup ecosystem. This commitment comes at a crucial time, as it seeks to bridge the gap and create equal opportunities for women-led businesses.
Furthermore, Founders Factory Africa’s expansion plans include broadening its capital investment offerings to encompass non-dilutive capital. Recognising the diverse needs of startups at different stages of maturity, the accelerator aims to support startups with varied capital deployment strategies along the venture maturity curve.
Bongani Sithole, CEO of Founders Factory Africa, shared his vision for the future, stating, “Moving Africa forward requires more of us to support tech-driven, solution-oriented ventures that have the potential to scale and make an impact at speed.”
The new funding will also fortify Founders Factory Africa’s internal capacity to offer top-tier venture-building support to its current and future startup portfolio. As the startup ecosystem in Africa continues to thrive and innovate, Founders Factory Africa is well-positioned to contribute significantly to the growth and success of early-stage ventures across the continent.
In conclusion, Founders Factory Africa’s recent $114 million funding success marks a significant milestone in the growth of the African tech startup ecosystem. With its innovative investment model, commitment to diversity, and expansion plans, Founders Factory Africa is set to play a pivotal role in empowering startups to make a lasting impact across various sectors and geographies.
As the African tech landscape continues to evolve, Founders Factory Africa’s influence is poised to extend far beyond funding, fostering a culture of innovation, collaboration, and success among the continent’s brightest minds and boldest ideas.