In 2019, a young Nigerian fintech startup named Kora (formerly Korapay) set its sights on Techstars Toronto, a prestigious accelerator program. No African startup had ever been accepted before, but Kora’s potential for global impact caught the eye of Sunil Sharma, the accelerator’s Managing Director.
Sharma, a former diplomat with a keen interest in international ventures, was impressed by Kora’s founder, Dickson Nsofor. “Nsofor’s background and his passion for serving international markets resonated with me,” Sharma explained. “We actively pursued an investment in Kora, and I believe my commitment to their vision ultimately won them over.”
This initial investment proved to be a turning point. Not only did it pave the way for Kora’s growth, but it also opened doors for other African startups. The following year, Nsofor connected another Nigerian startup, Quidax, with Techstars Toronto, leading to their acceptance into the program.
“Kora’s success story sparked a deeper interest in the African tech landscape,” revealed Sharma. “Prior to this, only a handful of African startups had participated in Techstars programs globally. Since Kora, we’ve welcomed over 50 more African startups into our network.”
This week, Techstars Toronto celebrated its 100th investment, with a remarkable third of the new cohort hailing from Africa. So, what makes a startup attractive to Techstars Toronto?
“We prioritize startups with validated demand for their solutions and a strong technical foundation,” explained Sharma. “However, our focus extends beyond technical prowess. We’re particularly interested in ventures with global applications, such as those facilitating remittances, providing insurance for immigrants, or fostering talent development. Companies like Lenco, Awabah, TalentQL, and Mycover.ai exemplify this approach.”
Beyond Capital: Building a Global Bridge for African Startups
While funding is crucial, Techstars Toronto recognizes that financial resources alone aren’t enough to ensure a startup’s success. “Many well-funded ventures still fail,” Sharma acknowledges. “That’s why we go beyond simply providing capital. We offer support in key areas like talent acquisition, market entry strategies, and navigating regulatory hurdles.”
However, Sharma emphasizes a unique advantage Techstars offers: its vast network of over 8,000 founders worldwide. “We facilitate connections between founders from different regions, enabling them to learn from each other’s experiences and explore potential collaborations,” he explains.
Sharma envisions a future where African-born solutions address global challenges, particularly as purchasing power weakens in some parts of the continent. He cites MPost, a Kenyan startup digitizing postal services, and LaborHack, a Nigerian platform connecting blue-collar workers with job opportunities, as prime examples. With Techstars’ support, LaborHack is already exploring the potential of its services in North America.
Having spent nearly four years investing in Africa, Sharma observes a common thread among African entrepreneurs. “They share many similarities with entrepreneurs elsewhere,” he says. “However, African founders often demonstrate exceptional resilience, tenacity, and an unwavering determination to overcome obstacles.”
Techstars Toronto is actively building partnerships with African investors to identify promising startups, share knowledge, and provide even greater value to its portfolio companies. A recent collaboration with ARM Labs led to the launch of the ARM Labs Lagos Techstars Accelerator, further solidifying Techstars’ presence on the continent. Their investment in Hulugram, an Ethiopian super app, is a testament to this commitment.
Sharma hints at the possibility of establishing additional hubs across Africa, reflecting their goal of doubling their investment in the continent. “We’re thrilled with the ARM Labs partnership,” he concludes. “We believe there’s immense potential for innovation across Africa, and we’re eager to collaborate with leading organizations in Kenya, Morocco, Egypt, South Africa, Rwanda, and beyond.”
