To better assist African entrepreneurs, Founders Factory Africa raises a $114 million investment.
Founders Factory Africa, a South Africa-based venture capital firm focusing on early-stage startups, has successfully concluded a $114 million funding round, as announced in a statement on Monday. The investment will be channeled toward expanding its operational framework to better cater to founders within the African tech ecosystem. The substantial funding infusion primarily stemmed from the Mastercard Foundation and Johnson & Johnson Impact Ventures, a part of the Johnson & Johnson Foundation dedicated to driving positive impacts on healthcare solutions in developing nations.
Alina Truhina, Co-founder at Founders Factory Africa, expressed enthusiasm about this development, emphasizing the firm's ability to leverage its existing relationships with prior investors to secure the new funding round. She noted, "We are excited to have new and dynamic funding, the speaker said, "which follows on from previous investments into Founders Factory Africa by Standard Bank Group, Small Foundation, and Netcare Group."
Founded in 2018, Founders Factory Africa has invested actively in businesses across Africa, giving them money and operational support. The company's hybrid investment model provides early-stage entrepreneurs with both financial backing and operational advice. In 2019, Founders Factory Africa and Netcare collaborated to provide $38,000 in financing and more than £220,000 in support services to 35 African health-tech entrepreneurs.
Due to the limited availability of traditional startup finance, accelerators are essential for fostering the African startup ecosystem. In addition to a 2021 partnership with Small Foundation, which chose 18 agritech entrepreneurs for acceleration and incubation programs and provided funding ranging from $100,000 to $250,000, Founders Factory Africa has constantly launched accelerator programs. Strategic investment is obtained by Founders Factory Africa in order to broaden its reach and work with additional businesses while emphasizing gender diversity and sound business principles. This financing supports the hybrid investment model, which combines financial and operational support to alleviate the ecosystem's gender imbalance.
The company intends to increase internal capacities for startup portfolios and diversify capital investment into non-dilutive possibilities. CEO Bongani Sithole places a strong emphasis on developing the tech ecosystem and providing entrepreneurs with crucial resources for success. "More of us must support tech-driven, problem-solving businesses that have the potential to quickly develop and have a significant impact if Africa is to advance. As Founders Factory Africa, it is our responsibility to give entrepreneurs the resources, training, and hands-on assistance they need to grow successful businesses and have a significant, systemic impact.”
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