Mastercard Foundation, an international nongovernmental organization, has ended its commitment to invest $100 million in 54 Collective, the most active investor in Africa. 54 Collective (formerly Founders Factory Africa) and Mastercard Foundation “will be pursuing different strategies moving forward, and the partnership will end on 30 April 2025,” the venture capital firm told Rest of World in an email. A setback for Africa’s most active investor On February 20, the leadership team of 54 Collective informed staff that the new changes would lead to layoffs as the firm would end
LoftyInc Capital Management has announced the first close of its third fund at $43 million. The LoftyInc Alpha Fund focuses on investments that will expand Africa’s most talented startups across key areas like Nigeria, Egypt, Kenya, and Francophone Africa. It has previously invested in notable startups such as Flutterwave, Andela, Wave Mobile, and RelianceHealth. This comes at a pivotal time, as investors were less active in Africa last year. In 2022, 28 were involved in over ten $100,000 deals, but this number dropped to 8 in 2024. LoftyInc has over
Nigerian fintech unicorn Moniepoint has received a “strategic investment” from Visa, according to Techcrunch. The funding aims to propel financial inclusion and support the expansion of small and medium-sized enterprises (SMEs) across Africa. Moniepoint’s Series C Sources close to the deal say Moniepoint received over $10 million from Visa after securing a $110 million Series C round last October. Now, its Series C surpasses $120 million, and the company is allegedly speaking to other investors and could potentially attract more funding in the coming months while continuing its billion-dollar valuation.
In 2024, African startups saw fewer investors financing deals of over $100,000. 850 startups received funding over $100,000 in 2021, but this number decreased to around 520 last year, according to findings from Africa: The Big Deal. The report also found that investors are less active than before, as 28 were involved in over ten $100,000 deals in 2022, but this number dropped to 8 in 2024. Who were the top investors in Africa in 2024? 54 Collective was the only investor participating in more than 20 $100,000 deals. The
Waza, a Y Combinator-backed B2B payments startup, is using its $8 million funding to create Lync, a banking product that plans to transform international transactions for African businesses, Techpoint reports. Last year, the startup received $8 million in equity and debt funding to expand into markets beyond its current operations in Ghana and Nigeria and offer new trade finance solutions. The funding round was led by major investors, including Byld Ventures, Norrsken Africa, and Timon Capital, with the aim of empowering enterprises across the continent to navigate global markets more effectively. The
Africa’s startups raised $2.2 billion in equity, grants, and debt (excluding exits). While this is an impressive figure, it highlights a 25% decrease compared to last year, when startups in Africa secured $2.9 billion, according to ‘Africa: The Big Deal.’ Who were the major key players? The total of $2.2 billion was primarily driven by two significant deals by Nigeria’s Moniepoint and South Africa’s Tyme Group. A gross of 188 ventures secured $1 million or greater (excluding exits) in funding, 10% less given in 2023 despite the 25% dip in
African venture capital firm Janngo Capital has closed its second fund at €73 million (approximately $78 million), surpassing its original €60 million target by 20%. Janngo Capital states that fund now positions the venture capital firm as the largest accelerating gender equality in Africa. Investment Focus on Gender Equality and Diverse Sectors Janngo Capital positions itself as a “gender-equal” investor, with 56% of its portfolio companies founded or led by women. Notable women-led investments include the Nigerian B2B platform Sabi and expense management company Expensya. According to Janngo, its investment
Uncap has launched Unconventional Capital, a new €30 million (USD 33.4 million) fund to provide early-stage African small and medium-sized enterprises (SMEs) with alternative financing. Backed by major institutions like the Bill & Melinda Gates Foundation and the Bayer Foundation, the fund will focus on high-impact sectors such as agriculture, climate resilience, and financial inclusion, driving economic development across Africa. A New Approach to Financing Based in Munich and Nairobi, Uncap has been working to close the capital gap for African businesses since 2019, using a remote, data-driven approach. The
Innovate Africa Fund has launched with an initial $2.5 million to support up to 20 early-stage startups over the next year, addressing challenges such as insecurity, unemployment, and poverty. Supporting Early-Stage African Startups Since 2019, the funding landscape in Africa has shown promising growth, with disclosed exits surpassing $2.3 billion. However, despite raising $17.2 billion overall, early-stage founders often need help to secure the funding necessary to transition from ideation to market fit. Innovate Africa Fund aims to bridge this gap by providing insight-driven capital to help founders accelerate their
Breega, a Paris-based venture capital firm, has announced the first close of its $75 million Africa-focused fund, designed to back pre-seed and seed-stage startups. Expanding Horizons With Local Presence Breega’s new fund, “Africa Seed I,” marks its first foray outside Europe and aligns with opening two new offices in Lagos and Cape Town. These new locations join Breega’s existing offices in Paris, London, and Barcelona, enhancing its presence across the EMEA region. According to Ben Marrel, Breega’s co-founder and CEO, the firm’s approach is rooted in its “founders-for-founders” ethos, offering
