Most African tech start-ups have failed to rise to pre-Covid growth levels, with funding greatly reducing and being forced to erase the expansion they experienced then. In fact, in some situations these start-ups have collapsed and closed down such as BRCK, Kune foods, We Farm and Notify Logistics.
With funding depreciating, many start-ups are at risk of following suite. However, there is a sigh of relief as Norrsken22, a pan-African venture capital firm, has managed to raise funds, surpassing its target, aimed at supporting African start-ups.
The pan-African firm, which was formed in 2022 and is present in countries such as Kenya, South Africa, Ghana and Nigeria, managed to close its first African technology growth fund at Sh31 billion ($205 million), surpassing its target of Sh30.24 billion ($200 million).
Norrsken22, which is the brainchild of Niklas Adalberth and Hans Otterling, is focused on entrepreneurs developing fintech, edtech, medtech and market-enabling solutions that will deliver strong returns and have a positive impact across Africa.
According to Niklas Adalberth, Africa is the future of the world and the opportunities it has has to offer are immense.
“Africa has the youngest population globally and its upcoming digital-first generation is the future of Africa – and the world. We’re delighted to announce this final close and with the support the fund has received. There are huge opportunities in Africa. We are excited to continue our mission of driving funding into African tech, and creating jobs and sustainable growth in the region” Niklas said.
In Africa, Norrsken22 has already made five investments. Its portfolio includes South African challenger bank Tyme Bank, African business-to-business digital commerce platform Sabi, Africa’s leading identity verification solution, Smile ID and auto financing platform Autochek.
According to Natalie Kolbe, Managing Partner of Norrsken22, the timing of the fund ideally positions the firm to support a growing African tech tailwind.
”The transformative power of technology can leapfrog traditional ways of doing business, and Africa has the opportunity to lead the World with its solutions. We are excited to be partnering with so many promising startups that can have a positive impact across Africa,” she said.
Apart from the over 30 unicorn founders that support the fund, it also has an investor base that consists of International Finance Corporation (IFC), US International Development Finance Corporation (DFC) and the British International Investment (BII).
It is also supported by an advisory council of business leaders from across the continent, contributing local business knowledge as well as global perspectives. This is welcoming sight for African tech start-ups who are in need of funding to kickstart their resurgence.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
