A $25 Million Fund That Targets African Start-Ups Has Been Launched By Savannah Fund
A $25 Million Fund That Targets African Start-Ups Has Been Launched By Savannah Fund. Savannah Fund, a pan-African venture capital firm, announced a $25 million fund as it looks to back more early-stage start-ups on the continent. Since it was launched in 2012, Savannah Fund, led by Mbwana Alliy and Paul Bragiel, has backed more than 30 start-ups. Some of its well-known investments include South African car subscription company, FlexClub; Kenyan on-demand logistics company, Sendy; and Nigerian fintech company, Lidya.
Speaking with Tech Crunch, Alliy said the firm has invested in seven start-ups with the first close, which indicates effort on their part that would help close the rest of the fund. “We raised from some angel investors, high-net-worth individuals, so when the official fund launched, we rolled these select companies into the fund. We think if you can show that you already have investments you’ve made with your own money, it’s easier to raise from institutional investors, and I think we’re on that path.” Alliy told Tech Crunch.
The fund also aims to focus on inventing in businesses that are female owned, this is in effort to encourage and expand female founders on the continent. “Entrepreneurs in Residence (EIRs), especially female founders, are a key part of our investment strategy as we have seen with the success of Moringa School, Safigen and Sendy – all 3 of which have women founders/CEOs who previously worked with Savannah as EIRs, Associates & Interns. We’re proud to partner with WeFi to further expand and encourage female founders on the continent. Even during a pandemic, we held 3 internships in 2020, some virtual and some in-person in Kenya and Tanzania.” the firm said in a statement.
Lead investor IFC confirmed the news with Tech Crunch. “Early-stage funding is vital to enable more of Africa’s emerging and growing tech founders to grow their business and fuel the transformation of Africa’s internet economy. By partnering with Savannah Fund, we can help more entrepreneurs to access funding.” said Kevin Njiraini, IFC regional director for Southern Africa and Nigeria.
Savannah Fund is a seed capital fund specialising in US$50,000-US$1,000,000 investments in early stage high growth technology (web and mobile) start-ups in sub-Saharan Africa. Initially focused on East Africa, the fund aims to bridge the early stage/angel and venture capital investment gap that currently exists in Africa. The Fund expects to achieve this objective by combining capital with mentor networks and local technical assistance both in the region and Silicon Valley.
