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Founders Factory Africa: $144M Secured for Gender Disparity in the VC Ecosystem

Founders Factory Africa
Founders Factory Africa

Early-stage investor Founders Factory Africa, based in South Africa, has raised $144 million to support its investments across the continent.

The investment was made in part by Johnson & Johnson Impact Ventures and the Mastercard Foundation. The business, which was established in 2018 by Bongani Sithole and Alina Truhina, invests in creative early-stage enterprises, from seed rounds to founders with ideas. Up to a $250k equity check is signed.

Founders Factory Africa invests $100K to $300K in non-dilutive funds in its portfolio firms in addition to equity checks.

The Venture Capital firm claims to work with startups in the fintech and health tech sectors. Over 55 African tech firms have received funding from Founders Factory Africa since its founding, including Zuri Health, OkHi, and MyCover. AI.

It does, however, also note that the company’s founders have created solutions in edtech, agritech, logistics, and other disciplines by employing its patented technology to address issues in several industries.

Founders Factory Africa also intends to step up efforts to address the gender gap in the ecosystem. According to a BCG report, women are more likely to start businesses that are profitable than men, so it is alarming that these companies are not receiving adequate investment.

However, in 2022, male-led companies earned a whopping 96% ($4.6bn) of the total volume, leaving female-led businesses on the continent with a meager 4% ($188m).

Additionally, by enhancing its investment methodology, the Venture Capital Company hopes to connect with additional African internet entrepreneurs. To address the continent’s demand for a variety of capital deployment techniques along the venture maturity curve, it also plans to expand the types of capital investments it offers, including non-dilutive capital.

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Written by Tumininu adeleye

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