Founders Factory Africa, a leading early-stage investor, has successfully raised $114 million to further its mission of supporting innovative startups across the African continent. This significant funding round was made possible by the generous contributions of prominent investors such as the Mastercard Foundation and Johnson & Johnson Impact Ventures.
Founded by Bongani Sithole and Alina Truhina in 2018, Founders Factory Africa provides comprehensive support to early-stage ventures, ranging from seed funding up to $250,000 to non-dilutive investments of $100,000 to $300,000.
Since its inception, the firm has invested in over 55 African tech startups across diverse sectors, including fintech, healthtech, edtech, agritech, logistics, and more. Notable portfolio companies include Zuri Health, OkHi, and MyCover.AI.
Recognizing the significant underfunding of women-led startups in Africa, Founders Factory Africa has made it a priority to address this critical imbalance. A recent BCG report highlighted that women-led businesses demonstrate strong revenue potential, yet they receive a disproportionate share of funding, with male-led startups securing a staggering 96% of venture capital investments in 2022.
To further its impact, Founders Factory Africa plans to expand its investment model to reach a wider range of African tech startups. This includes exploring new forms of capital, such as non-dilutive funding, to cater to the diverse needs of startups at various stages of their growth journey.
This significant funding round will enable Founders Factory Africa to continue its mission of supporting innovative entrepreneurs, bridging the gender gap in the African tech ecosystem, and fostering a more inclusive and equitable investment landscape.
