The African market is growing considerably, but investors are still slow to fund tech startups. Ajim Capital has decided to launch a $10M fund to invest in African tech startups, allowing entrepreneurs to focus on growing their businesses instead of worrying about funding.
The fund will provide checks of $25,000 to $150,000 to pre-seed to seed tech-enabled companies across the continent. Ajim Capital is looking for startups that fit their established criteria – potential for rapid growth and fast adoption. They are interested in companies that can provide excellent returns to investors and that fill significant economic and infrastructure gaps for consumers and enterprises across Sub-Saharan Africa.
They are keen on considering founders with entrepreneurial experience or experience in the industry relevant to their technology. “We invest primarily in founders with former entrepreneurial or directly relevant industry experience, initial indications of product-market fit (e.g. revenue or users), highly scalable software solution, and a potential 10x CoC return for investors,” says Eunice Ajim, Founding Partner of Ajim Capital.
Venture capitalist interest in Africa is surging with a record-breaking close to $5 billion in disclosed investments in 2021, picking up from a pandemic-induced slowdown in 2020. This shows the strength of the African nation and the ability to bounce back in a crisis.
According to a report by Africa: The Big Deal, venture capital funding is currently concentrated in Egypt, South Africa, Nigeria, and Kenya. More countries on the continent need to participate in this space as its growth can impact the nation significantly and positively.
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