Founders Factory Africa, an early-stage investor based in South Africa, has raised $114 million to provide operational support for its investments across the continent.
The Mastercard Foundation and Johnson & Johnson Impact Ventures contributed to the investment.
Founded in 2018 by Bongani Sithole and Alina Truhina, the company invests in innovative early-stage ventures, from founders with ideas to seed rounds. It signs equity checks up to $250,000.
In addition to equity checks, Founders Factory Africa invests $100K to $300K in non-dilutive funds in its portfolio companies.
The VC firm says it collaborates with startups in the fintech and healthtech industries. Since its launch, Founders Factory Africa has funded over 55 African tech startups, including Zuri Health, OkHi, and MyCover. AI.
But it also points out that the company’s founders have developed solutions in edtech, agritech, logistics, and other fields by using its proprietary technology to address problems in several industries.
Moreover, Founders Factory Africa plans to intensify efforts to address the gender imbalance in the ecosystem.
A BCG report shows that women-led businesses ultimately generate a higher revenue than those founded by men, making the underfunding of these businesses a troubling issue.
But in 2022, male-led startups received a disproportionate 96% ($4.6bn) of the total volume, leaving female-led businesses on the continent with a meagre 4% ($188m).
Moreover, the VC firm wants to reach more African tech startups by expanding its investment model. It also intends to broaden the types of capital investments it provides, including non-dilutive capital, to meet the continent’s demand for various capital deployment strategies along the venture maturity curve.
