Flourish Ventures’ Post

Africa’s billion-dollar startups are transforming industries like fintech, e-commerce, and tech talent. From Moniepoint to Flutterwave and Andela, these innovators are driving growth and attracting global attention. 💡 Learn more about Africa’s rising tech stars from Forbes Africa: https://lnkd.in/g3ECpCUN #AfricaTech #Innovation #Fintech #InvestInAfrica

For the investors at QED, Latin America fintech is always a market to watch. However, partner and Head of Latin American investments Mike Packer believes 2025 could be a big year and shares with Rebecca Szkutak at TechCrunch two reasons he thinks we're likely to see a resurgence in deals in the market. 1️⃣ LatAm fintech companies that raised in the hype of 2021 are just resurfacing now to raise their next round — for better or for worse. But it isn’t just companies running out of runway. 2️⃣ QED is seeing fintech companies in their portfolio hitting milestones and ready to head back out to reach their next level of growth. One limiting factor for startups looking to raise is that the majority of the funding to fintech companies in LatAm still comes from local funds or firms focused on the region. Mike explains, "We need more investors to look at LatAm as a global opportunity and need entrepreneurs to believe that they can make a difference and change things.” Read more on TechCrunch: https://lnkd.in/dKhAACwP

VC firm Norskenn22 plans to invest in 20 African startups by the end of 2025, per Bloomberg. The firm has already backed six African startups so far, including South African neobank firm Tyme Group. Norskenn22 has three more investments already lined up. The VC firm secured $205M in capital commitments towards its Africa-focused fund last year, which aimed to back “lean-tech solutions,” including software, web-based platforms, and artificial intelligence. The fund is a joint initiative between Northzone Ventures’ partner Hans Otterling and Niklas Adalberth’s Norrsken Foundation. Norskenn22 has backed startups across South Africa, Nigeria, Kenya, and Egypt. Per the African Private Capital Association, VC funding inflows into African startups slumped by 31% YoY in 2023 to $4.5B due to rising inflation and weakening local currencies.

In the wake of #COVID19, #AfricanStartups face a staggering #capitalcrunch, with global investment shifts leaving significant gaps in funding. Despite the challenges, startups have an opportunity to bridge these gaps: only 30% of startups have explored strategic partnerships, while 60% rely solely on traditional #venturecapital. Diversifying funding sources beyond venture capital is critical, yet only 20% of startups have pursued alternatives like grants and crowdfunding. Enhanced visibility and networking efforts remain underutilized, with just 25% actively engaging in online presence and global networking. Advocacy for supportive government policies is lacking, with only 10% of startups actively involved. Emphasizing #sustainability and #impact could unlock new opportunities, yet a mere 15% of startups prioritize these aspects. By addressing these gaps, African startups can navigate the evolving investment landscape and continue driving #innovation and #economicgrowth in the region.

As an entrepreneur and investor, I am obsessed with long-term trends. Digitization (including AI and SaaS) is one, and decarbonization is another—both of which I know quite a bit about. However, there is one megatrend where I am completely clueless: Africa 👉🌍 Africa will account for 11 (!) of the world’s 20 fastest-growing economies in 2024. And it has a large, young, and rapidly growing population, combined with double-digit year-on-year smartphone growth, which imho creates an ideal environment for venture capital investment across Africa. As always when new structures emerge, VC holds immense potential to drive economic growth on the continent by catalysing technological innovation and scaling service delivery rapidly, beyond what traditional players could achieve—and the financial sector is the basis for everything. Yet, Africa is massively "underbanked", and incumbent players are slow to adapt to the needs of the fast-growing population on the continent, leaving a vacuum for technology. #FinTech plays a crucial role in the development of the African finance sector and filling this gap. But as I said above, I really don't have a clue about this market, and it would be foolish of me to attempt it myself -- but luckily, I found a super-smart team who does, and I became a founding LP in First Circle Capital, a female-led specialist fund that invests in early stage FinTech across Africa, and I want to give a shout-out to them, because now having been on board for a year, I can see what an amazing job they are doing. The co-founders and managing partners include former M-PESA Africa executive and FinTech investor Selma Ribica (who has an amazing angel portfolio at 33X MOIC in early-stage fintech), and includes companies such as Qonto (France, valued $5bn in 2022), Tabeo, Expensya (Tunisia, sold to Medius AI in 2023), and emerging markets entrepreneur Agnes Aistleitner Kisuule. They have a portfolio of currently 13 companies, and continue to grow it, in their quest to back the most promising early-stage breakout Fintech companies across the continent. Do you know any start-ups which First Circle Capital should invest them? Please mention them in the comments. Any LPs who want to join? Please let me know if you want an introduction. P.S.: On the two other megatrends, digitization + decarbonization I will continue to work on myself, with my saas.group respectively with World Fund. But Africa is now in good hands.

I’ve written a bit about Africa’s tech funding landscape over the past year, so this article—investors at Verod-Kepple Africa Ventures talking about investing—really resonates with me.💯 Here’s my favourite part: “Our perspective is that it's a great time to be investing and deploying capital. It's also a great time to see the founders who make those tough decisions, pivot early, adjust to the realities and sharpen their business models.” Check it out: https://lnkd.in/dr4DFmry

🚀 Africa’s Venture Landscape; 2025 Predictions Join us as we explore the exciting future of Africa’s startup ecosystem! This year, we believe Africa’s venture landscape will thrive with fintech, health tech, and climate tech driving growth. Local investors will take the lead, and the rise of African unicorns will transform the continent’s business landscape. Join us as we host Florence Yula (FMVA) and Adeshina A. to a session on the 31st of January to discuss 2025 predictions. https://lu.ma/cnba2kkc Don’t miss out on this opportunity to be part of the conversation and witness the next wave of innovation in Africa! 🌱💡 #AfricasVentureLandscape #StartupEcosystem #Fintech #HealthTech #ClimateTech #Innovation #AfricanUnicorns #VentureCapital #TalentDevelopment #FutureOfAfrica

Exciting times ahead for Africa's emerging startup ecosystem! Former Nigerian Vice President Prof. Yemi Osinbajo has been a vocal advocate for innovation and technology, and initiatives like the Timbuktoo Fintech Accelerator Programme are paving the way for the continent's future success. Let's continue to support and nurture these budding entrepreneurs as they drive Africa's growth and position the continent as a global leader in the digital economy. #Innovation #StartupGrowth #AfricaRising #Timbuktoo #Fintech 🌍💡🚀

UPDATE: For anybody who hasn't received the link: https://bit.ly/4hibDxa Europe’s VC investments are 𝟴 𝘁𝗶𝗺𝗲𝘀 𝗹𝗼𝘄𝗲𝗿 than the US. By the time European startups are 10 years old, they’ve raised 𝟱𝟬% 𝗹𝗲𝘀𝘀 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 compared to their counterparts in San Francisco, according to the European Investment Bank.   While initiatives like France’s €7bn Tibi program and Germany’s WIN initiative aim to close this gap, US and Asian investors still dominate Europe’s largest growth rounds, raising concerns about ownership of Europe’s future tech champions.   To support founders deal with this challenge, we have researched and compiled 𝟲𝟬+ 𝗩𝗖 funds that invest in growth stages. In the sheet, you will find: → Fund name → Fund size → Sectors they invest in → Stages they invest in → Link to the fund Comment ‘𝗚𝗿𝗼𝘄𝘁𝗵 𝗦𝘁𝗮𝗴𝗲’, and I will send you the spreadsheet with all the details. Source: Vestbee   #Venturecapital #AI #Deeptech #Startups   Share this with your network and follow us at APEX Ventures for the latest updates on our portfolio companies and exclusive insights into the world of Deep Tech. Also, get access to exclusive content on Deep Tech startups in our newsletter: 🔗 https://t2m.io/EV2qHQuo

📈 Equitable Ventures Mid-Year Update: Celebrating Our Achievements! 🚀 We are thrilled to share the progress we've made in the first half of the year at our Semester "Out of Office” OKR review! 🌟 3 New Investments with Exposure: Since February, we’ve discussed with over 100 fintech startups across Africa and we've made three strategic investments. We’re also looking to close two deals in Q3. 🌟 2 Series A Milestones with Compass: Two of our portfolio fintechs have successfully achieved their Series A funding rounds (to be announced soon), recognizing their current growth and expansion potential. Our commitment to supporting high-potential early-stage fintech startups is stronger than ever. We are focused on reaching our first closing as our next major milestone, as we look forward to enabling even more impactful change in the African financial services landscape! #FinTech #Africa #Investing #Innovation #FinancialInclusion #Achievements