Ayodeji Ayenuwa
Norrsken22, the Pan-African venture capital firm, has achieved a significant milestone by closing its debut fund at $205 million, exceeding its initial target.
This accomplishment signals the growing interest of institutional investors in supporting African startups during a challenging economic landscape.
“We are excited to be partnering with so many promising startups that can have a positive impact across Africa. We are delighted to see an active and growing early-stage investor community developing across the continent; however, we still see a gap in growth-stage tech funding on the continent,” said Natalie Kolbe, the firm’s Managing Partner.
Norrsken22 was founded by industry experts with extensive experience in venture capital and private equity. Operating in Nigeria, South Africa, Kenya, and Ghana, this nearly two-year-old firm established its Norrsken22 African Tech Growth Fund in 2022. Initially aiming for $200 million, the fund exceeded its target and closed at $205 million.
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“Like Norrsken22, several other growth-stage firms, including Partech Africa, TLcom Capital, Algebra Ventures, Sawari Ventures, and Novastar Ventures, have raised one to two funds over the past couple of years to address the shortage of capital in Series A and beyond,” noted Lexi Novitske, a General Partner at the firm.
With an emphasis on bridging the gap between growth and late-stage investments, Norrsken22 is allocating approximately 50% of its capital to expand its portfolio with Series A and B companies. The remaining funds will be reserved for follow-on investments, particularly in the B and C rounds.
“We have set a small amount aside for the earliest stage opportunities. If something exciting comes to us, we may invest small amounts of capital, but that’s not our primary focus,” emphasized Natalie Kolbe.
The firm focuses on nurturing startups in fintech, edtech, medtech, and market-enabling solutions. Their portfolio already includes investments in companies like Tyme Bank, Sabi, Autochek, Shara, and Smile Identity.
Ultimately, Norrsken22’s commitment to bridging the funding gap for growth-stage startups in Africa, coupled with the diverse support from unicorn founders and institutional investors, positions it as a significant player in the region’s venture capital scene.
Techrectory with Agency Report.
