Techstars Toronto, a prominent accelerator program, has emerged as a key player in supporting African startups. This shift can be attributed in part to an investment in Kora, a Nigerian fintech company, in 2019.
Sunil Sharma, Managing Director of Techstars Toronto, was drawn to Kora’s potential to serve international markets. This initial investment paved the way for more African startups to join the program, including Quidax, another Nigerian company introduced by Kora’s founder.
The success of these investments has significantly boosted Techstars’ presence in Africa. Since 2019, the number of African startups accepted into Techstars programs worldwide has doubled. Notably, a third of Techstars Toronto’s latest investments are from African countries.
Key factors attracting Techstars to African startups:
- Validated demand: The startup has a proven market need for its product or service.
- Global potential: The solution addresses challenges or offers opportunities relevant to a wider audience beyond Africa.
- Technical expertise: The founding team possesses the technical skills necessary to build and scale the product.
Beyond funding, Techstars offers valuable support to its African portfolio companies:
- Network access: Connection to a network of over 8,000 founders worldwide facilitates knowledge sharing and potential collaboration.
- Market entry guidance: Assistance with navigating regulatory hurdles and developing strategies for entering new markets.
- Global reach: Exposure to potential customers and investors beyond the African continent.
Examples of Techstars’ impact on African startups:
- LaborHack (Nigeria): A platform connecting blue-collar workers with jobs is exploring expansion into North America with Techstars’ support.
- MPost (Kenya): A startup digitizing post offices is another example of an African company with global potential.
Techstars’ future plans in Africa:
- Increased investment: The organization aims to double its commitment to supporting African startups.
- Partnership expansion: Techstars is open to collaborating with more entities like ARM Labs to establish accelerator hubs across Africa.
