Modus, a venture platform in the MENA region with VC funds, Venture Builders, and a Corporate Innovation arm, has announced a $75 million venture capital fund called Modus Africa that will focus on the SDGs.
Modus Africa will invest in the most innovative startups using AI and Blockchain. Vianney Mathonnet and Andre Jr. Ayotte, General Partners, are in charge of the fund. Both of them have a lot of experience in the African startup ecosystem.
Here’s What You Should Know
Modus Africa will help the continent’s early-stage impact-driven ventures and local tech talent grow and develop.
With a follow-on investment allocation and 45 investments in firms at the Seed+ stage, the new fund, which will close in Q1 2023, would stimulate international investment in the continent.
Africa has one of the highest rates of blockchain adoption in the world. Over the next four years, demand and a rapidly growing tech-savvy population could bring in more than 200 million new blockchain users.
Modus says that startups that use AI and Blockchain technologies will speed up the Fourth Industrial Revolution in Africa and make a lot of money and significantly impact sustainable development.
“Modus is delighted to announce the launch of an Africa-MENA investment corridor, to continue to encourage and invest in expanding innovation ecosystems. Kareem Elsirafy, the Managing Partner of Modus, said
Through operational, institutional, and financial capital, the Modus platform is uniquely positioned to make an impact and add value to African communities. We’re glad that Vianney and Andre will take charge of this trip.”
Andre and Vianney have been part of the startup scene for over six years. They teamed up with Modus to create innovation ecosystems that would help poor communities in emerging regions.
Andre Jr. Ayotte, a partner at Modus Africa, said, “We’re thrilled to be joining Modus to focus on investing in African companies that have a great chance to bet on the 4th Industrial Revolution.”
AI could add another $1.5T to Africa’s economy by 2030, about 50% of Africa’s GDP. Blockchain has already shown that it can help more people access financial services while lowering the cost of the business in Africa.
The Modus Africa GPs have already built strong relationships with top Web3 organisations, businesses, and governments. These organisations, businesses, and governments want to solve significant problems on the continent, and so do the Modus Africa GPs.
In the past 18 months, Modus has proliferated. In that time, it opened branches in Abu Dhabi, Cairo, and, most recently, Riyadh. Mubadala’s Hub71, USAID, and several other top organisations have helped make this expansion possible.
How will the money be spent
Even though the fund is not tied to a specific industry, it will primarily invest in early-stage startups because they have the most AI and Blockchain applications.
Thanks to Modus Africa’s sourcing, financing, and assistance, startups ing ahead can advance when traditional Web2 businesses and Web3 technology are integrated.
In addition to providing Modus portfolio firms with a new market entry opportunity, the expansion into Africa enables African startups to develop into the MENA area.