Press Release
24.12.2022
Catalytic Africa investment tops $0.5M in 2022
Catalytic-Africa, the African startup matching fund initiative by ABAN and AfriLabs that co-invests with angel investors in hub-related innovative startups through matching funding, has now invested $580,000 in African startups.
The initiative received initial funding from the Agence Francaise de Developpement (AFD) as its first Limited Partner in 2021 and has now concluded co-investment transactions in 10 African countries. These countries include Cameroon, Botswana, Nigeria, Tunisia, Kenya, South Africa, Mauritius, the Democratic Republic of Congo, Zambia and Sénégal with the at least two pending disbursements. These transactions represent over half a million dollars co-invested with angel investors from these countries.
The disbursements indicate a Catalytic-Africa fund investment matching approval rate of 62.5% of total applications received. The platform matches investment transactions into startups from innovation hubs that are members of Afrilabs and invested in by angel networks that are ABAN members.
“South South East Angel Network (SSEAN) was founded just over 3 years ago to decentralise and deepen the support for the innovation ecosystem in Nigeria. When you look across Africa you will realise that one of the recurring things is insecurity. But at the core of insecurity is lack of opportunities and poverty. Providing some sort of fuel for the innovation ecosystem to create a fire of opportunities to fight poverty and by extension insecurity can only be a good thing. Catalytic-Africa may well be that fuel,” according to Uche Anichie, co-founder of the network, who helped secure matching funding for a startup they invested in.
Uche Anichie, co-founder of South South East Angel Network
“Seeing Catalytic-Africa become a reality has only strengthened our conviction that de-risking angel investors’ investment into innovative African startups will have a positive impact on millions of Africans. Providing our matching funding is unlocking potential and helping entrepreneurs create jobs,” said Fadilah Tchoumba, ABAN Secretary General.
Catalytic Africa’s matching fund has been recognised as an innovative financing model for Startups in Africa and has had increasing uptake since its launch in October 2021 with beneficiaries being able to accelerate the growth of their companies with the funds received.
“Catalytic-Africa is aiming to remove bottlenecks in the startup process of applying for and receiving funding from African angel investors. Our platform provides an easy, transparent and efficient way to apply and disburse startup funding with a turnaround time of well under a month,” said Tomi Davies (TD), ABAN President.
This speed of disbursement is mainly due to the fact that due diligence checks are carried out by the ABAN angel networks prior to their investment in the startup, which the platform accepts as valid so there is no need to have a second DD – shortening the investment processing period.
“The matching fund presupposes that you’ve already passed the test to acquire an investment interest, presumably from investors who are making a decision on commercial merits. They do due diligence that says this is the right fit for their risk appetite, and for the returns that they want,” said Mythri Sambasivan-George, Head of Investments at Angel Network Botswana, who are one of the Catalytic-Africa co-investment networks.
Mythri Sambasivan-George, Head of Investments at Angel Network Botswana
The platform recently received recognition at the Youth Connekt Summit in Rwanda, and has also been feted as a crucial addition to the start-up ecosystem. The unique offering provided by Catalytic Africa is an example of home-made solutions that can tackle the distinctive problems facing the continent.
“I see more Africans, and more organisations born out of Africa jumping into challenges and addressing them, and getting better solutions suitable for the African context. We are creating solutions that actually work, involving Africans, with the support of our local angel network and Catalytic Africa” said Victor Maina, CEO of Duhqa, a startup beneficiary of the Catalytic Africa fund, when commenting about the benefits of Catalytic Africa.
The Catalytic-Africa platform showcased at the Afrilabs Gathering on October 26-28, and at the Africa Early Stage Investor Summit which took place from November 2-4, 2022 across over 30 African cities and virtually.
“We want to spread the word so our platform can be widely used to accelerate development across the continent through innovation” Fadilah concluded.
Catalytic Africa is proudly supported by Agence Francaise de Developpement (AFD) and Digital Africa.
Duhqa Team based in Kenya, a startup beneficiary of the Catalytic Africa fund
ENDS
About ABAN:
African Business Angel Network (ABAN) is the largest pan-African organisation of Angel investors in Africa. Established in 2015, ABAN represents the growing number of business angel groups in the African early stage ecosystem, providing vital human and financial capital to African startup companies to create jobs across the continent. Today ABAN is a 60 member network with a presence in 35 African countries and the Diaspora representing over 1600 angel investors.
About AfriLabs:
AfriLabs is a network organisation supporting Innovation Centers across African countries since 2011, founded upon the mission of building a community around the rapidly emerging technology hubs in Africa. These hubs serve as centres that provide support to African entrepreneurs, innovators, developers, and youths. By providing physical co-working and dedicated office spaces, as well as inclusive training and business, legal and financial support, they play an active role in helping to raise successful entrepreneurs who will create jobs and develop innovative solutions to African problems.
