By Onome Amuge
Google for Startups (GfS) has announced the 25 African-based startups selected for the 2023 $4 million Black Founders Fund selected from a cohort of 40 startups from Europe and Africa.
Each selected startup will receive up to $150,000 in non-dilutive cash awards, about $200,000 in Google Cloud credits, ad support, and one on one mentoring by industry experts and invaluable connections within Google’s network.
The Black Founders Fund, now in its third year, aims to help tackle systemic racial inequality in venture capital (VC) funding by providing equity-free grants and mentoring to early stage Black-led high-growth businesses across Europe and Africa.
Interestingly,startups led or co-founded by women make up 72 per cent of the group, highlighting the role women play in shaping Africa’s startup ecosystem. The funding is expected to provide the businesses with the capital needed to take their ventures to the next level and expand to new markets, supercharging economic opportunities and job creation.
Google explained that with the significant decrease in African tech investment in the first quarter of 2023 , startups in Africa need funds to sustain their growth and develop innovative solutions for the continent. Based on this, it noted that early-stage investment is essential for the success of startups and the African startup ecosystem as a whole, especially as the continent strives to become a global tech leader.
Commenting on this, Folarin Aiyegbusi, head of startups ecosystem, Africa at Google noted that startups play a major role in advancing Africa’s digital transformation. He added that the Google for Startups Black Founders Fund is committed to addressing the stark inequality in VC funding by providing black founders with the resources and support they need to succeed.
“We look forward to working with this group of innovative founders who are using technology to solve some of the most pressing challenges in Africa,” said Aiyegbusi.
Ifedayo Durosinmi-Etti, founder of Herconomy and one of the selected beneficiaries for the 2023 fund said: “At Herconomy, we are on a mission to reimagine the financial landscape for women in Africa. Being chosen for the prestigious 2023 Black Founders Fund will fuel our revolutionary vision and accelerate our progress. With the funding and support provided by the programme, we will expedite the development of our innovative solutions, enhance support for our valued customers, and expand our presence on an international scale.
Cathy Chepkemboi, Founder of Tushopanother beneficiary said, “At Tushop, our passion lies in leveraging technology to empower Kenyan consumers and increase their buying power. Our ultimate ambition is to transform the way daily essentials and FMCG products are accessed, enabling individuals to save significantly. With the support of Google for Startups, we are one step closer to realising our goal of positively impacting the lives of millions of consumers in Kenya and beyond.”
Njabulo Skhosana, founder of HealthDart, who was also selected for the 2023 fund commented, “At HealthDart, we empower patients to access affordable and timely solutions for basic health problems through our technology-driven approach. By integrating pharmacy, telemedicine, and insurance with seamless payment options, we ensure affordable access to comprehensive primary healthcare. With the support of Google for Startups, we are poised to further enhance our platform, enabling more individuals to find the most cost-effective and efficient healthcare options.”
Since its inception, the Black Founders Fund has facilitated over $205 million in investor conversations, representing a 12-fold increase. This has sparked significant growth within the participating startups, with their combined monthly recurring revenue now exceeding $6.1 million, marking a seven per cent increase.
The 25 African startups selected for the 2023 Black Founders Fund include Akoma Health from Nigeria;BezoMoney from Ghana; Chargel from Senegal:Charis UAS from Rwanda; Evolve Credit from Nigeria;Excel At Uni from South Africa; EzyAgric from Uganda;Fez Delivery from Nigeria;Fleetsimplify from Kenya; HealthDart from South Africa and Herconomy from Nigeria.
Others include Jumba from Kenya; MDaaS Global from Nigeria; My Pocket Counsel from Nigeria;Talamus Health from Ghana;Periculum from Nigeria;Ridelink from Uganda; Orda from Nigeria;Susu from Côte d’Ivoire;Raenest from Nigeria;Tushop from Kenya;TruQ from Nigeria; Uzapoint from Kenya; Zinacare from South Africa; and Zydii from Kenya.
