Baobab Network, a pioneering early-stage investor and accelerator, has announced its ambition to invest in 1,000 startups across the continent by 2033.
Today we are excited to announce our plan to invest in #1000 African tech companies over the next decade 🚀
It’s a significant commitment, but with the recent launch of our Co-Investment Vehicle and subsequent new $100k #cheque size, we mean business.https://t.co/b5YZ5NK8zt— Baobab Network (@baobabnetwork) October 5, 2023
Since its inception in 2016, Baobab has been a dedicated advocate for African startups, offering crucial financial support and guidance. Every chosen company is granted a significant $100,000 investment, in addition to a customized 12-week accelerator program designed to expedite their growth and long-term viability.
“We have the platform to dramatically scale the number of investments we review and execute across Africa,” said Toby Hanington, Co-Founder of Baobab.
“Our goal is to empower 1000 start-ups, catalyzing innovation and driving economic growth across the continent.”
Baobab’s most recent cohort includes promising startups such as:
- Brandrive
- PocketFood
- Bunce from Nigeria
- Kawu from Uganda
- Alal from Senegal
Each of these businesses has received a $50,000 investment from Baobab, reinforced by an additional $50,000 from Baobab’s newly introduced co-investment vehicle.
Hanington underlined the company’s proactive stance amidst global market fluctuations.
“We have already completed 10 deals this year [2023], with a larger cohort expected in Q4,” he revealed.
The company has also recently appointed Niama El Bassunie, a YC alumna and a notable exited entrepreneur in Africa, as managing partner, a decision which the VC sees as further buttressing its position as a key player in the continent’s tech revolution.
Baobab Network’s ability to endure market challenges underscores the enduring potential of Africa’s tech ecosystem. With its ambitious goal of investing in 1,000 startups over the next decade, the organization exemplifies the essence of African innovation and entrepreneurship.
The move by Baobab is particularly significant given the scaling back of Y Combinator, another key accelerator for African startup ecosystem, in recent times.
The Y Combinator’s S22 batch featured merely eight African startups, marking a 63% decrease from the preceding cohort (W22) which had a record 24 African startups. In the most recent W23 cohort, only three startups from Africa were included, representing the lowest number in recent years.
According to industry watchers, the Silicon Valley-based accelerator has decided to focus more in America, which is epitomized by 90% of investments being there in W23. The drawback has not just been from Africa, but other parts of the world, including India, Asia, and Latin America that have been affected by the apparent change in strategy.
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