Founders Factory Africa secures massive bag to fund more startups

  • Founders Factory Africa with support from Mastercard Foundation and Johnson & Johnson Impact Ventures has secured $114 million in funding.
  • This funding will be used to support local tech founders on the continent.
  • Most importantly, the funding allows Founders Factory Africa to offer non-dilutive capital investments to local founders.

Startups should keep an eye on Johannesburg-based early-stage investor Founders Factory Africa as the firm has secured additional funding to the tune of $114 million.

These funds are earmarked to support startups from across the African technology ecosystem. Supported by Mastercard Foundation and Johnson & Johnson Impact Ventures, this funding will help scale the firm’s investment model which has to date helped 55 technology startups from across the continent.

“We are excited to have new and dynamic funding, which follows on from previous investments into Founders Factory Africa by Standard Bank Group, Small Foundation and Netcare Group,” co-founder of the Founders Factory Africa, Alina Truhina said in a press release.

The firm says that this $114 million will allow it to improve in several ways.

Chief among these is the ability to become sector agnostic by investing in startups and founders who prioritise business fundamentals and address gender imbalance in the tech ecosystem. Furthermore, this cash injection gives Founders Factory Africa the ability to broaden its capital investment offering. This will include non-dilutive capital which is a vital mechanism for Africans who need investment but can’t afford to give up equity in return for that investment.

Of course, the real benefit is that the investment group can invest in more companies, giving those businesses a chance to succeed.

“Moving Africa forward requires more of us to support tech-driven, solution-oriented ventures that have the potential to scale and make an impact at speed. Our role as Founders Factory Africa is to provide founders with the funding, knowledge, and hands-on venture building support they need to achieve commercial success and create outsized, systematic impact,” says chief executive officer at Founders Factory Africa, Bongani Sithole.

“Come build with us,” Sithole adds.

To join Founders Factory Africa’s growing portfolio of startups, head to the official website to submit an application and find out more.

[Image – Desola Lanre-Ologun on Unsplash]


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