Baobab Network, a prominent early-stage investor and accelerator focused on supporting technology companies across Africa, has unveiled an ambitious plan to invest in 1,000 companies by the year 2033. Each of these companies will receive $100,000 in funding upon completing Baobab's 12-week accelerator program.
Since its launch in 2019, Baobab Network has consistently demonstrated its commitment to fostering innovation in Africa by actively investing in locally-led enterprises, with the primary goal of preparing these startups for scalability and sustainable growth within the African tech ecosystem.
Toby Hanington, co-founder of Baobab, announced the latest five investments, highlighting the organization's readiness to significantly increase the number of investments they evaluate and execute across the African continent.
The latest cohort of Baobab Network includes startups from various African nations, including Nigeria, Uganda, and Senegal. Notable startups in this cohort include Brandrive, PocketFood, Bunce (all from Nigeria), Kawu (Uganda), and Alal (Senegal). Each of these companies has already received $50,000 in direct investment from Baobab, with an additional $50,000 investment from Baobab's newly launched Co-Investment Vehicle.
Market Dynamics Fueling Baobab's Growth
Despite global market dynamics, Baobab Network continues to stand out as one of the most active pre-seed investors in Africa. The organization has already completed ten deals this year, with expectations of a more substantial cohort in the fourth quarter.
Baobab Network's commitment to growth on the continent is further exemplified by the recent addition of Niama El Bassunie as Managing Partner, a Y Combinator (YC) alumni and a successful entrepreneur who has exited previous ventures.
Established in 2016, Baobab Network operates from offices in Nairobi, Lagos, and London, priding itself on being a sector-agnostic and geographically inclusive investor within Africa. Entrepreneurs who join Baobab's accelerator not only receive USD 100,000 in funding but also gain access to a global network of partners and co-investors. Baobab's overarching vision is to establish a diversified investment portfolio by backing 1,000 startups across Africa over the next decade.
One noteworthy success story is the Morocco-based logistics startup Colis.ma, which received $50,000 from The Baobab Network through its accelerator program. In September 2022, four of Baobab's investors secured USD 50,000 each. These included Nigeria's Oval Interactive, South African startups Lemon and Local Knowledge, and Shemach, a marketplace facilitating inventory management for small retailers in Ethiopia.
In May 2022, Baobab's cohort of five investees received $25,000 each, featuring startups such as Sidebrief, Lendha, GoodTalent, Opus Analytics, and Mighty Finance. These companies are revolutionizing various sectors, from legal services and lending to talent recruitment and finance.
Baobab Network's commitment to fostering innovation in Africa is further highlighted by its investments in startups like Afrigility, Eazy Chain, ePoultry, and MuduPay, each of which received a $50,000 capital injection. These companies are driving positive change in East African logistics, integrated logistics solutions, agriculture marketplaces, and online payments across the continent.
As Baobab Network continues to make substantial investments in African startups, it is poised to play a pivotal role in the growth and development of the continent's technology ecosystem over the coming years.
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