INSUBCONTINENT EXCLUSIVE:
Jake Bright
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Jake Bright is a writer and author in New York City
He is co-author of The Next Africa.
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Africa Roundup: African startup investments turn to fintech
this winter season
Nigeria Piggybank.ng raises $1.1M, announces group investment product
Weeks after French President Emmanuel
Macronunveiled a $76M African startup fundat VivaTech 2018, TechCrunch paid a visit to theFrench Development Agency(AFD) — who will
administer the new fund — to get more details on howle noveau fondswill work.
The $76M (or€65M) will divvy up into three parts,
according to AFD Digital Task Team LeaderChristine Ha.
&There are €10M [$11.7M] for technical assistance to support the African
ecosystem… €5M will be available as interest free loans to high potential, pre seed startups…and…€50M [$58M] will be for
equity-based investments in series A to C startups,& explained Ha during a meeting in Paris.
The technical assistance will distribute in
the form of grants to accelerators, hubs, incubators, and coding programs
The pre-seed startup loans will issue in amounts up to $100K &as early, early funding to allow entrepreneurs to prototype, launch, and
experiment,& said Ha.
The $58M in VC startup funding will be administered throughProparco, a development finance
institution—orDFI—partially owned by the AFD
The money will come &from Proparco balance sheet&…and a portion &will be invested in VC funds active on the continent,& said Ha.
Proparco
already invests in Africa focused funds such asTLcom CapitalandPartech Ventures
&Proparco will take equity stakes, and will be a limited partner when investing in VC funds,& said Ha.
Startups from all African countries
can apply for a piece of the $58M by contacting any ofProparco Africa offices(including in Casablanca, Abidjan, Douala, Lagos, Nairobi,
Johannesburg).
And what will AFD (and Proparco) look for in African startup candidates &We are targeting young and innovative companies able
to solve problems in terms of job creation, access to financial services, energy, health, education and affordable goods and
services…[and] able to scale up their venture on the continent,& said Ha.
The $11.7M technical assistance and $5.8M loan portions of
France new fund will be available starting 2019
On implementation, AFD is still &reviewing several options…such as relying on local actors through [France&s] Digital Africa platform,&
said Ha.
Digital Africa—a broader French government initiative to support the African tech ecosystem—will launch a new online platform
in November 2018 with resources for startup entrepreneurs.
So that the skinny on France new Africa fund
It adds to a load of VC announced for the continent in less than 15 months, including$70 for Partech Ventures, TPG Growth $2BN Rise Fund,
and$40M at TLcom Capital
Though $75M (and these other amounts) may pale compared to Silicon Valley VC values, it a lot for a startup scene
that — at rough estimate—attracted only$400M four years ago.African tech entrepreneurs, you now have a lot more global funding options,
