The Harambeans Prosperity Fund aims to provide $1-million in a mix of equity and debt funding to African networks affected by the economic downturn
This, as GreenTech Capital senior company builder Max Bayen has reported that as of 31 May a total of 58 startups in Africa had raised $1-million or more in investment this year.
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With the coronavirus (Covid-19) headlining news all over the world, Ventureburn has launched a regular daily roundup on the virus and how it is affecting Africa’s tech startup sector.
Those with any news releases relating to Covid-19 and Africa’s tech startup sector can send these to editor@memeburn.com.
Releaf Group and Max.ng have each netted $100k from the Harambeans Prosperity Fund
Here then is the latest on the coronavirus and African tech startups:
Fund to invest $1m in startups: The Harambeans Prosperity Fund – formed through the Harambe Entrepreneurship Alliance network of prominent families and corporations – aims to provide $1-million in a mix of equity and debt funding to African networks affected by the economic downturn. This funding will be made available to African innovators who have been admitted to the Harambe Entrepreneur Alliance. The fund has already identified the first two recipients, both from Nigeria – Releaf Group and Max.ng – who have each benefited from $100 000 each in funding (in Max.ng’s case it was an equity investment and for Releaf Group, a debt investment). Entrepreneurs who are not members of the network are invited to apply to become Harambeans here. The applicant should demonstrate how the firm is adapting to the pandemic.
List of firms funded published: South Africa’s Department of Small Business Development has published a list of small businesses that have been supported by the department and its agencies with Covid-19 relief funding, including the SMME Debt Relief Financing Scheme. The department said in an article on 22 May that under the first phase of its support, a total of R513-million for 1497 applications (of a total of 14 451 complete applications) had been approved. Find the list here.
South Africa, Nigeria and Egypt lead: As of 31 May a total of 58 startups in Africa had raised a $1-million or more in investment this year, according to GreenTech Capital senior company builder Max Bayen. Bayen said in a tweet (see below) on Tuesday (2 June) that startups from South Africa, Nigeria and Egypt accounted for 70% of these deals. It’s not clear what definition for an African startup Bayen used. In April Bayen said tech companies in Africa had raised over $343-million as of about mid-April, which is 27% higher than the same period in 2019 (see this story).
https://twitter.com/MaxBayen/status/1267878061053272064
Read more: Covid-19 and African tech startups roundup [04/06/2020]
Read more: Covid-19 and African tech startups roundup [03/06/2020]
Read more: Covid-19 and African tech startups roundup [02/06/2020]
Read more: Covid-19 and African tech startups roundup [01/06/2020]
Featured image: MAX Deliver Nigeria (Facebook)
