Sylvia Duruson
Baobab Network, an African tech startup investor, has announced plans to invest in 1,000 African companies over the next decade. Underscoring this goal is the launch of a $100,000 investment fund for early-stage startups on the continent.
Founded in 2016, Baobab Network has been building a strong foundation focused on African entrepreneurship. In 2019, it started an accelerator program and has since invested in 45 startups across 15 African countries.
The firm touts successful portfolio exits, including fintechs MuduPay Terminal Africa and Tripitaca, which joined the prestigious 500 Startups accelerator.
Baobab’s announcement comes as prominent global platforms like Y Combinator refocus efforts on the US, causing a sharp drop in available startup funding in Africa. However, Baobab Network remains committed to supporting promising African founders.
Co-founder Toby Hanington aims to “empower 1,000 startups, catalysing innovation and driving economic growth across the continent.” The new $100,000 investment fund aims to provide critical early financing to help African startups get off the ground.
Hanington added they have the platform to increase startup investments in Africa dramatically and invited founders seeking first funding rounds to apply. The $100K fund signifies Baobab Network’s intent to bolster African entrepreneurship amid declining investment.
Baobab Network’s rise mirrors surging interest in African startups, with over 1,500 applicants to its accelerator each month. The firm recently appointed Niama El Bassunie, an experienced investor and entrepreneur, as managing partner to help scale its investing activities.
The $100,000 funding pool adds to Baobab Network’s co-investment vehicle that allows third parties to participate in its deals. The organisation aims to play a key role in Africa’s startup ecosystem.
Its decade-long plan to back 1,000 startups demonstrates conviction in African innovation and growth potential. The new investment fund inspires hope among early-stage founders who face dwindling funding options on the continent.
Baobab Network’s hands-on support and roster of successful startup exits set it apart from other investors eyeing African tech talent. The firm’s bold vision and expanding team position it to nurture the next generation of African startup stars despite the sector’s headwinds.
