Modus, a venture platform operating in the Middle East and North Africa (MENA), has announced the launch of Modus Africa – a $75 million SDG-focused VC fund that will invest in Africa’s boldest startups powered by AI and blockchain technologies.
The new fund will close in Q1 2023 and will invest in 45 startups at the seed+ stage with a follow-on investment allocation catalyzing foreign investment into the continent.
This is done through operational, institutional, and financial capital.
The fund is sector agnostic but will focus primarily on investing in early-stage startups where the growth for AI and Blockchain applications is the strongest.
Find out more here: https://t.co/oiIrSqXct2 pic.twitter.com/QEkjWHLUuf
— moduscapital (@moduscapital) November 15, 2022
The fund is sector agnostic but will focus on investing in early-stage startups where the growth for AI and blockchain applications is the strongest. Modus work includes nurturing the growth and development of the continent’s local tech talent and early-stage impact-driven ventures.
Modus is a Latin word that means ‘the way in which something is done,’ and this informs the firm’s value system.
The firm is composed of three pillars:
- Venture Builder – Helping founders fast-track their ideas and early MVPs into high-value creating companies
- Venture Capital – An early to mid-stage VC fund providing funding to Modus-built companies and external direct investments
- Corporate Innovation – For corporations and governments to leverage Modus internal know-how and IP to develop their entrepreneurial ecosystems
According to Modus, the fund is led by two veterans in the African tech ecosystem, Vianney Mathonnet and Andre Jr. Ayotte, who are its General Partners. Ayotte says blockchain has already demonstrated its capacity to increase financial inclusion while lowering the overall cost of doing business in Africa while AI could add $1.5 trillion to the African economy.
“We’re thrilled to be joining Modus to focus on investing in African companies that have an incredible opportunity to bet on the 4th Industrial Revolution,” Ayotte said.
Kareem Elsirafy, Managing Partner at Modus, says:
“The Modus platform is uniquely positioned to deliver impact and value to African communities through operational, institutional, and financial capital. We’re excited to have Vianney and Andre leading the way on this journey.”
Spearheaded by the 2 partners, Modus Africa says it will source, invest, and support startups that are leapfrogging ahead by merging traditional Web2 businesses with Web3 technologies. The two partners have already established a deep foundation with leading Web3 institutions, corporates, and governments who all share a common vision of solving real problems on the continent.
Modus, which already operates in Cairo, Egypt, believes startups utilizing AI and blockchain technologies will not only accelerate the African 4th Industrial Revolution but also deliver strong financial returns coupled with an immense impact on sustainable development.
“Africa has the potential of 200+ million new blockchain users in the next 4 years fueled by necessity and a fast-growing tech-savvy population.”
Modus is also drawn to the continent following a 250% YoY growth in funding in 2021 which surpassed the total funding for startups in the MENA region last year.
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